Alternatives to Amigo Loans

Amigo prefer your guarantor to own their home. But, if your guarantor does not then Amigo may accept them if they have a strong credit score and can demonstrate that they pay their bills on time. We have more information about non homeowner guarantors. You may find other lenders are more flexible about  property ownership.

You can apply to Amigo so long as you satisfy some criteria: you live in the UK - are aged 18-75 - are not currently bankrupt or on an IVA - can comfortably afford the repayments. You also need to be able to provide an acceptable guarantor. Amigo won't make a lending decision based on your credit rating - this is a trust-based loan instead.
 

The APR is fixed at 49.9% regardless of the amount you borrow or the length of time you borrow it for. Amigo's rate is a little higher than most other lenders. We work with some lenders who vary the APR so that it is higher for smaller amounts and lower for large amount. So, it could be that for smaller loan amounts (say £1,000 or £2,000) Amigo is a reasonable option. Conversely on larger loans (over £7,500) we could have lenders that offer a lower APR. The lowest APR from any of our lenders in 29.9% for loans over £10,000. If this is of interest then apply here.

Repayments are set up using a direct debit and paid on a monthly basis. The amount you repay will be specified by Amigo before you sign any agreement. They will also take your debit/credit card details as a backup in case the direct debit fails. You can also make extra payments (overpayments) to help reduce the balance more quickly, and Amigo won't penalise you for doing this. You can make these payments via their app, by phone, by text or online. You can also make cash payments using one of over 28,000 PayPoint stores.

The first thing to do is let Amigo know you have a problem. They will always work with you to get things back on track without needing to involve your guarantor although they will always notify your guarantor if you miss a payment. If your account remains in arrears and you and Amigo can't agree on a new repayment plan that works then they may ask your guarantor to step in to help out. This would prevent the arrears from becoming unmanageable.

You will be credit checked before any documents are signed as Amigo needs to know you are creditworthy. But once the agreement is signed and the borrower starts to make their monthly repayments you should hear nothing from Amigo Loans. However, if the borrower is struggling to make payments and then fails to keep in touch with Amigo or defaults then you will be needed to step in. If you fail to help bring the loan up to date then this will be recorded on your credit file too.

Yes, Amigo Loans is very happy for you to make overpayments or indeed settle the whole loan early. They do not charge any fees for this. So, if you should suddenly be able to pay off a chunk of your loan then that will save you further interest costs and reduce the overall cost of your loan. We'd always recommend doing this if you can afford it.

Amigo aims to payout a loan within 24 hours or the guarantor being accepted. This will depend on what if any documentation is required. Once your loan is approved the money is transferred to your guarantor's account who then passes it to you. Money is paid via your guarantor as part of anti-fraud processes.

You could apply direct but then you'd be missing out on seeing whether you could get a better deal from other lenders. Our free enquiry service can tell you instantly which of the many lenders we work with, including Amigo, could lend to you in principle - and many of these other lenders can offer lower APRs and larger amounts than Amigo Loans. If you'd rather maximise your chances of a guarantor loan then use our enquiry service - no fees, and exactly the same deals as going direct!

Typically you need to find someone who knows you well enough for them to trust you - this is a form of "trust-based" lending. So with this in mind your ideal guarantor is likely to be: Parents, Brothers & Sisters - Aunts & Uncles - Sons & Daughters - Grandparents - Boyfriend or Girlfriend - Work Colleagues & Friends. Unlike some lenders Amigo will consider people who are financially linked to you, but they will conduct some extra checks. Guarantors can also live at the same address as you. Amigo will need to speak direct to your guarantor as part of the application process.