What is a Loan Like Amigo?
A loan like amigo is very simply a guarantor loan – this is where you borrow money with the help of a person you know to act as your guarantor and therefore agree to cover your repayments if you cannot.
Whilst Amigo Loans are the biggest guarantor lender in the space, you may wish to compare rates and terms with other lenders. Perhaps you were approved with Amigo but only for a small amount, or maybe you were declined by Amigo and would like to explore other options.
Lending Expert offers a full price comparison table of sites like Amigo, helping you to borrow between £500 to £2,000 with rates from 19.9% to 49.9% representative APR.
Compare the loan products using our table provided and simply click on ‘check eligibility’ to be taken directly to the lender’s site where you can apply. You will need to provide a guarantor to co-sign your loan agreement and if successful, you can usually receive funds within 24 to 48 hours.
Key Features
- There are around 8 other guarantor lenders like Amigo in the UK
- Borrow £500 to £20,000
- Repaid over 12 to 60 months
- Rates from 19.9% to 49.9% representative APR
- Guarantor required
- Bad credit considered
Why Would I Need a Loan Like Amigo?
Loans like Amigo and guarantor loans offer an effective way for people to borrow large sums if they have been denied by mainstream banks and lenders – usually due a poor credit score or lack of credit history.
With the help of a guarantor you know to co-sign your loan agreement, it adds extra security to your application and you can borrow the money you need.
Guarantor loans are often used for consolidating debts, new car purchases, home improvements, weddings, childcare and other household expenses.
Are There Lenders Similar to Amigo? Are There Loan Alternatives to Amigo?
Yes, there are around 8 different other guarantor lenders in the UK and we are delighted to be working with the likes of UK Credit, Buddy, Trust Two, George Banco and other providers.
Each lender like Amigo has different criteria and loan terms available and often people find that if they have been denied by Amigo, they may be accepted by a competitor or visa-versa.
The application processes between each lender are very similar, since you apply online, enter your personal details and the details of your guarantor and wait for a decision subject to further checks. You may find that other lenders have a different appetite for risk and may be more willing to lend to others and possibly offer higher loan amounts too.
What is the Eligibility Criteria?
- Borrower is over 18 years of age
- Guarantor is over 25 years of age
- UK residents only
- Guarantor must agree to co-sign loan agreement
- UK bank account
- Valid mobile phone accounts and email addresses
- Borrower may have bad credit or adverse credit history
- Guarantor should ideally be a homeowner, but tenants considered too
Do I Need a Guarantor To Apply with Lenders Like Amigo?
Yes, you will need a guarantor to be eligible for a loan like Amigo. This is someone who you typically know and trust and has the disposable income to help cover the cost of your loan if you cannot.
The most common guarantors are parents, siblings and close friends and rather than give you something like £5,000 upfront, they may feel more comfortable being a guarantor on your behalf.
However, the guarantor must be aware of the responsibilities involved and if the borrower struggles to keep up payments, the guarantor will be required to step in and make repayments on their behalf.
How Do I Maximise My Chances of Being Approved?
To increase your chances of approval, it helps if you have a guarantor who has a good credit rating and is ideally a homeowner. This suggests to the lender that the guarantor has a good record of paying off other loans and credit obligations on-time and if they own a property which could be used to raise extra funds if need be.
In addition, it will certainly help if the main borrower has a fair credit score at least, full-time employment and a regular income to be able to make ongoing monthly repayments.
Can I Get a Loan Like Amigo with Bad Credit?
Yes, loans like Amigo are typically used for people with bad credit histories, including CCJs loans and IVAs. You just need to show a willingness to pay off your future loan repayments and have a strong guarantor who can potentially cover your repayments if you cannot.
How Soon Can I Receive Funds if Approved?
If successful, the loan funds can be sent within 24 to 48 hours (or sometimes sooner). The money is sent to the bank account of the guarantor as a security measure – so at least the large sum goes to a person with a good credit rating. There is a cooling period of 2 weeks whereby the guarantor can send back the money to the lender if they change their mind and there are no fees involved.
How Do I Apply on Sites Like Amigo with Lending Expert?
To apply with other websites like Amigo, simply find the list of lenders in our comparison table provided. With Lending Expert, you can compare all the key loan information including loan amounts, duration, rates and eligibility.
Once you have found the lender of your choice, simply click on ‘check eligibility’ where you will be taken to their website and can start the loan application and get approved today.
