Amigo Loans - Whats the point?

Whiner

I can't see the point of Amigo loans.

If you want a loan with them, and you can't get one elsewhere, then you need a guarantor to take a loan with Amigo loans, who charge a huge APR.

Effectively the guarantor is getting the loan for you, and this would mean their credit rating needs to be ok.

So, why doesn't the guarantor just get the loan themselves, at a much lower apr, from a bank?

I must be missing something, what is it?

Tixy

I must be missing something, what is it?

From a common sense point of view nothing, getting the guarantor to get a loan themselves is exactly what is suggested on this forum in response to any thread on guarantor loans.

In practice the reality is often that the guarantor doesn't realise that by being a guarantor they are risking just as much as taking a loan in their own name. They don't realise it is their credit file that will be affected if payments are missed, and they that would ultimately be taken to court if payments were not made.

[Deleted User]

Whiner wrote: »

I can't see the point of Amigo loans.

So, why doesn't the guarantor just get the loan themselves, at a much lower apr, from a bank?

I must be missing something, what is it?

Me neither! why drag someone else normally loved ones into your mess in that way..
Though I've often wanted to create a thread on another lender! and their accrue interest on the transfer fee even!!! (how do they do that!?) that to is just daylight robbery! :mad:

Your point about banks probably has something to do I imagine because they do not lend to all and sundry anymore well not £500 odd "The kind of loans banks see as too small and administratively burdensome." no?

the tales of woe are actually on here for all sides but then I don't know any bank manager who can transfer £100 in minutes past 10pm on the whole short term thing which won me over so when you wake your problems are somewhat easier, nah I would never go for something as ludicrous as guarantor loans - but see how people can be pushed towards it - really bad credit etc and it should be a b i g warning if you pushed to guarantor loan so I consider myself lucky, not shafted the "payday loan lenders" so badly? I suppose

This lender used to be FLM loans, btw

BillJones

Deleted%20User wrote: »

Me neither! why drag someone else normally loved ones into your mess in that way..

Different morals to you and I, basically.

The sort of person who borrows money when they know they'll struggle to pay it back is also the sort of person who'll hide behind a debt being statute barred, and the kind of person who will happily have a family member or friend left holding their next debt when they again default.

Basically some people have no problem in taking from others, be that a company, a stranger, or family.

dealer_wins

It plays on the fact that the guarantor mentally thinks they dont have to apply for a loan, they are not handing over a capital sum to someone, and dont fully understand that if (when in all likelihood) the borrower defaults they will be liable.

Very clever company, money for old rope springs to mind since they are charging a 50% rate on a guaranteed loan!!

Monkeyballs

I was under the impression that it was aimed more at people with no credit history rather than those with a poor history?

It's not a payday loan as it is repaid over a number of months but obviously I could just be naive lol, I'm sure it gets abused...

MB

Jvic28

dealer_wins wrote: »

Very clever company, money for old rope springs to mind since they are charging a 50% rate on a guaranteed loan!!

Hi Everyone,

What do you mean by guaranteed loan?

dealer_wins

Jvic28 wrote: »

Hi Everyone,

What do you mean by guaranteed loan?

Guaranteed by someone (a mug) who owns a house.

forgotmyname

Someone with no credit history or a poor history gets someone to take over the loan if they fail to pay it.
Obviously they want that someone to be an easy target with the means to repay the loan.

Should be big bold writing where they sign.

IF THE APPLICANT FAILS TO PAY THIS LOAN. YOU MUST PAY IT INCLUDING ALL ARREARS AND INTEREST.
FAILURE TO PAY WILL IMPACT YOUR CREDIT FILE AND YOUR HOME MAYBE AT RISK.

Would you sign?

Jvic28

Just to clarify they're not secured loans though, you also can't withdraw money late at night and they are quite strict on ensuring the loan is affordable.

Also, whilst the loan is managed correctly, the guarantors credit isn't affected at all and the loan doesn't show on their report at all whereas if they took out the loan for the borrower instead it would be.

Just to throw another point of view to the discussion.....

ricky_v

Deleted%20User wrote: »

and their accrue interest on the transfer fee even!!! (how do they do that!?) that to is just daylight robbery! :mad:

To be fair you can have the mortgage arrangement fee (if charged) added onto the loan which is then charged interest. Depending on the product this can be over a couple of grand, although the rate is sub-2%, not 49.9%:rotfl: