Applying for amigo loan

[Deleted User]

My advice to you is, don't take on any more loans.

My advice to your sister is, don't be a guarantor.

DCFC79

jonnym8083 wrote: »

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?

I dont but I would have thought they would credit check your sister to see she could pay it back if you couldnt.

They will speak to your sister to make sure she could fulfill her duties as a guarantor and is aware how a guarantor works.

-taff

Suggest you go to the debt free board.

You will probably only find as many people on your hand as have had a consolidayion loan work for them, especially an amigo loan.

On the debt free board you will also find advice on a thread about claiming back payday loans. Read it.

Herzlos

Have you checked you're actually saving money with Amigo? Their interest rates are huge and likely to only be better than pay days.

Since it's just a loan to your sister given to you, I'd ask her to take out a bank loan at a tenth of the interest and make absolutely sure to pay her back + some extra.

iolanthe07

Can your sister afford to write off this debt if you fail to repay it? I have 'lent' money to family in the past on one or two occasions. I never expected to get the money back, and I never did. I regard these 'loans' as gifts, and if I did ever get anything back I would view it as a surprising bonus.

MEM62

jonnym8083 wrote: »

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.

If this is your opinion then I suggest that you familiarise yourself with the way that these loans work. The loan effectively IS you sister's and so is the liability. The business model here is that Amigo effectively lend to those with a good credit standing and charge rates that would apply to those with a poor standing.

Mainstream lenders have assessed you as high-risk. I appreciate that you may have a different view but it is unfair on your sister to burden her with this - particularly as consolidation loans are not always successful.

You need to look at alternative ways to clear your debts.

MallyGirl

If your sister is foolish enough to stand as guarantor for this Amigo loan it will affect her future ability to borrow for her own purposes, including a mortgage, until it is fully repaid. They expect you to not pay it back so her record will show that commitment to pay and it will be taken into account whenever she applies for future credit.

Why would you do this to your sister?

Marktheshark

You are about to put your own sister in the worst situation financially she will have ever been in.
This is going to end in one huge massive mess, MARK THESE WORDS.

There is only ONE KNOW WORKING CURE for your situation.

Stop borrowing money and pay off what you owe.

If you can not take this advice then, I am afraid, you are on your own, heading for the rocks in a very big storm.

badmemory

If your sister takes out a loan in her own name for you and you default she will be annoyed with you for some time, but if you allow her to guarantee a loan and you default and stop her from getting a half way decent remortgage or even get a new place to rent, she will be annoyed with you maybe forever.

Her being a guarantor is a really, really bad idea.

OneLife_OneShot

Do not get a guarantor loan. Like Mark said it will end terribly. If she is happy to help you, ask her to get a bank loan with lower APR and you pay her back and save you both money and hassle.

This is a terrible idea, not only will it not consolidate your debt it will cost you more money and potentially ruin your relationship with your sister.

If you have to go into a DMP or an arrangement with your own lenders but do not risk your sisters future credit for the sake of yours.