Applying for amigo loan

jonnym8083

Hi all I'm looking to apply for a loan with amigo for debt consolidation. My credit score is very poor at 526. I have been out of work previously due to ill health and to stay a float I've had to use payday loans which has affected my credit. Although amigo loan rate is high it's still better than where I am at with payday loans. I'm now fortunately well and back to work. I understand a guarantor is required and my sister is happy to do this. Will I pass the credit check with these guys though? Not sure how it works if my sister is credit checked or both of us? She does not own her own property but her credit score is very good but I don't want to apply for another rejection.

Caz3121

If your sister is going guarantor, the best approach would be for her to take a loan in her name and you pay her directly...she is likely to get a better APR

you first asked about this a few years ago https://forums.moneysavingexpert.com/discussion/3763229

jonnym8083

Thanks for your reply..She has offered to and that's a back up but i prefer to do it so it's in my name being paid by me. I know I'd be paying back more but it's just that I want to sort my own mess out if this makes sense. Although i need her as a guarantor it's still as though it's my loan for my finances and it's the company deducting directly from me.
Would you see a problem with me applying with my score?
Do they tend to concerntrate on the guarantors file rather then the borrower?

zippygeorgeandben

I think you need to seriously think whether you actually need to ask a family member to help you out here and if you fall into any arrears, it will be her credit which gets shot to pieces.
I'm glad you are back to being fit.

Richey_

Of course it's her credit file is al that matters. It's her loan, they pay the money to her and if she chooses to give it to you then it's up to her.

Don't think this is your loan, it is most definitely hers. They expect you to fail and this is why she is both guarantor and recipient of the money.

Take the previous advice ask her to take out a loan and give it to you, she will most likely get a lower rate than the almost 50% Amogo loans charge.

jonnym8083

With the salary I'm now on I could afford the loan fine and also I now have insurance if I was to fall ill I would still receive my same monthly salary. I'm keeping afloat at the moment with pay day loans but makes sense to consolidate and would be so much easier.

sourcrates

"Hi all I'm looking to apply for a loan with amigo for debt consolidation".

As soon as i read that first sentence, i thought, oh dear, not again.

Credit consolidation is a really bad idea, and rarely makes any sense, especially when it's a loan secured by a guarantor.

You really should rethink this, why not pop over to the debtfeewannabe forum, the good people there may be able to help you reduce your debt without resorting to further borrowing.

Consolidation is generally the last option before some kind of debt solution is required, most who have tried it, end up bankrupt or in an IVA, or other debt solution, its regarded as a mere stepping stone on the way to financial meltdown, i strongly recommend you dont do it.

DCFC79

2 things

1. Debt consolidation rarely works, it doesnt deal with the root cause for the debt.

2. Amigo loans seriously, again it doesnt solve the issue, it just shifts it.

Are you or your sister aware of the consequences if you fail to make a payment ?

Money and family rarely ends up good.

No 1 but you sees your credit score, lenders see your history.

Gambler101

OP please dont screw your sisters finances, credit file and life up by dragging her into your financial mess. No good brother would do this, and as much as you dont want to hear it you are high risk with about a 75% chance of defaulting and screwing her over.

Post over on the "debt free wanabee" board with a view to cutting outgoings to the bone and repaying your debts.

jonnym8083

I appriciate and thank you all and understand your concerns. By putting into one place and having paid off in a year I'd be exactly debt free. Does anyone have an answer in regards to the application acceptance please?

[Deleted User]

All we can tell is that they won't look at either of your credit scores, just your files and history.

If your sister has high existing debt or other issues, it may still be a non starter. Lack of home ownership is also often a deal breaker.