Amigo Loans

TwinMummy2be

Hi,


Does anybody have any experience of Amigo loans that then can share? I have looked at their website and it really all seems a bit simple and straightforward. I can't help but think there must be some hidden catch?

I am looking for a smallish loan and my sister is happy to stand as guarantor for me but I'm putting off applying as something is just niggling away that it isn't quite as easy as it looks.

Any advice/info gratefully received.

Thank you.

[Deleted User]

It's a good deal for the borrower but an awful one for the guarantor. They tend to be left paying a high rate loan when the borrower has got bored of making repayments.

If your sister is confident you'll repay, then ask her to take a loan out in her own name at (presumably) a much lower rate and give you the money. You can then pay her back.

That way, you save money and she's not left with a huge rate loan if you don't repay her - just a moderate rate one.

sharp82

Deleted_User wrote: »

If your sister is confident you'll repay, then ask her to take a loan out in her own name at (presumably) a much lower rate and give you the money. You can then pay her back.

Agree with this, providing her credit rating is decent?

iolanthe07

Amigo interest rates are horrendous because so many borrowers default and they have a hell of a time chasing the guarantors, who often didn't realise what they were signing up to. ZX81's advice is good.

TwinMummy2be

Thanks, can certainly see your point here but I guess I am just trying to avoid my sister actually having to take out a loan and have this in her name for the next couple of years. According to amigos website they say they will check my sisters credit but it won't show as a footprint so to speak.

I know she has got an immaculate credit report but really wanted to just ask for her to help me in a small way by being a guarantor rather than having her to actually take at the loan. I appreciate the high interest rates but as I have a bad credit record from a few years ago its a price I am willing to pay really.

Thanks.

fozmcfc

The point is she is effectively taking out the loan, if you fail to pay and yes so many do who never thought they would, will mean she has to make the payments, or she is the one who will end up with the bad credit default on her file.

Make no mistake, if you fail to pay, she will be held accountable. She will receive numerous calls, letters, charges, until payments are made, it won't be you, it will be her they go after.

So you need to make it clear from the offset, that for any reason you can't keep up the repayments or are late with them, even by a day, they will take the money immediately from her account and will she be ok with that.

If she is still ok, then so be it, but many family/friendship are torn apart over these types of loans, as witness by numerous threads around here over the years.

opinions4u

She's liable for your debt. End of story.

Please don't borrow.

spacey2012

No decent person would put their sisters head in these debt sharks mouths.
If you can not get a loan without a guarantor there is a very damned good reason and that reason is you do not pay things back once you have had the money.
Please do not put your sister up to this, save up or do without until lenders trust you.

dealer_wins

Sister gets loan for 10%, or use Amigo and she still is getting the loan as a guarantor but paying 50%.

Its the same thing.

R_P_W

TwinMummy2be wrote: »

Thanks, can certainly see your point here but I guess I am just trying to avoid my sister actually having to take out a loan and have this in her name for the next couple of years. According to amigos website they say they will check my sisters credit but it won't show as a footprint so to speak.

I know she has got an immaculate credit report but really wanted to just ask for her to help me in a small way by being a guarantor rather than having her to actually take at the loan. I appreciate the high interest rates but as I have a bad credit record from a few years ago its a price I am willing to pay really.

Thanks.

It effectively amounts to the same. They credit check her because they are really expecting you to default and they will want to know she can pay.

Difference being your sister could potentially get a loan at 5% compared to the likely 50%+ from amigo!

Ideally don't borrow anything. Next best is for sister to loan for you but obviously at risk.

The amigo advert on tv makes me want to throw stuff a the tv!

iolanthe07

OP, if you do go down this route, and for any reason one month you cannot pay, for heaven's sake let your sister know so that her credit doesn't get screwed.