Thanks to several TV marketing campaigns, Amigo Loans are now a household name in the world of finance.
Much like other lenders in the market, Amigo only lent up to £3000 when they first launched. As the market competition increased, their maximum loan amount has increased to £10,000.
Unlike UK Credit who exclusively advertise their tenant and homeowner guarantor products, Amigo lead with one simple product proposition.
With Amigo Loans, you can borrow between £500 and £10,000 over 1-5 years. The representative APR is 49.9% (variable) which puts it somewhere in the middle in terms of the market rates.
In conjunction with their guarantor loans, Amigo have recently launched ‘Amigo Cars’. This is a small online marketplace of brand new cars that cost under £10,000. This is aimed at those who’ve been turned down for regular car finance due to their credit history.
Much like their main product, you must have a guarantor when applying for finance through Amigo Cars. If you are approved, you are then able to place an order for the car and arrange for collection.
Ever since they were founded in 2005, Amigo Loans have been the market leading guarantor loans provider.
Such is their popularity; many consumers believe that Amigo Loans is the term used to describe the type of loan (guarantor loans) and not the brand name of the lender! This is illustrated by Google search trends in the UK:
As you can see, the search term ‘amigo loans’ gets 4 times more monthly searches than guarantor loans!
In addition to all of this, Amigo Loans boast over 11,000 TrustPilot reviews averaging 9.4 out of 10. My positive reviews elude to Amigo’s speed of service and easy application process.
Amigo Loans stress that they do not base their decisions on electronic credit scores. But instead, they base them on friendship and trust between the applicant and guarantor.
As an applicant with Amigo loans, you simply need to be a permanent UK resident, between 18 and 75. Amigo do not accept applicants who are in bankruptcy or an IVA. You must also be able to comfortably afford the monthly repayments and of course, provide a guarantor.
The guarantor can a friend, family member, partner, roommate or just about anyone else for that matter. They must be between the age of 18 and 75 and have a good credit history. Amigo prefer the guarantor to be a homeowner, but they can accept tenant guarantors providing their credit history is immaculate.
Speed of service is something that many customers choose Amigo for.
Unlike other lenders, Amigo rarely need to see any physical documentation such as proof of ID, address or income.
Instead, the applicant fills out and e-signs a five-minute application form. If accepted, they are given a link to send their guarantor, who logs in and completes their side of the application.
Both the applicant and guarantor then fill in an online income and expenditure check. This ensures that they are both able to afford the repayments of the loan.
Amigo will then carry out a quick phone call with both the applicant and guarantor to finalise the application. If approved, the loan will be paid into the guarantor’s account.
In most cases, Amigo Loans can complete an application on the same day.
Whilst they don’t make it clear on their website, it is believed that Amigo Loans will take the guarantors card details before completing the application. Therefore, in the event of a missed payment by the applicant, they simple take the outstanding amount from the guarantor’s account.
Lenders such as UK Credit will not take the guarantors card details. They will instead attempt to contact the guarantor in the event of a missed payment and collect the outstanding balance manually. This is arguably a more ethical approach to debt collection, and one in which many consumers will prefer.
Amigo Loans could be seen as the Adidas or Nike of the guarantor loans market. Their presence in the market breeds huge amount of trust.
As is the case with any product, consumers will often be more inclined to buy from recognised brand names. This has meant that Amigo Loans has quickly become the go-to provider for guarantor loans.
In the past, they have been criticized by the press for some of their debt collection strategies.
However, speed of service and ease of application will continue to be huge factors in influencing consumer’s buying decisions. For that reason, Amigo will continue to hold pole position in the guarantor loan market.
Amigo Loans Website
Mon - Thurs: 9:00 to 19:30
Fri: 9:00 to 17:30
Sat: 9:00 to 12:00
61 – 63 Riverside Road
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Guarantor Loans Representative Example: Borrow £4,000 over 36 months. Monthly repayment of £194.78. Total repayable is £7012.08. Interest payable is £3012.08. Fixed APR of 47.9%. Interest rate of 41%.
Personal Loans Representative Example: Borrow £300 over 6 months. Monthly repayment of £79.72. Total repayable is £478.32. Interest payable is £178.32. Fixed APR of 446.9%. Interest rate of 118.9%.
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