Amigo boast that they make borrowing available to people who may have a poor credit score. They do this through the provision of guarantor loans.
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Amigo proudly boasts that they offer ‘new, old fashioned loans’. By this, they mean that they make borrowing available to people who may have a poor credit score, or no history, meaning that they can find it difficult to get a personal loan from traditional sources such as banks or building societies.
They do this through the provision of guarantor loans. Amigo Loans Limited are part of the Richmond Group, and are regulated by the Financial Conduct Authority, with registered offices in Bournemouth, Dorset.
There are many factors that companies take into consideration when deciding whether to provide a personal loan to a customer. These include whether they are a home owner or not, what their annual salary is, and what the loan is to be used for. It’s also common for a credit score to be used as a major determinant.
If a customer hasn’t had a loan, mortgage or credit card in the past, then their lack of credit history can make it hard to obtain one. If they have borrowed before, but made late payments, or missed payments, then this can seriously affect their credit score for years to come. Amigo uses a guarantor system to let such people have access to the funds that they may need.
Amigo doesn’t rely solely on computers and algorithms to make lending decisions, they also use the human element. Before making a loan, their team call and speak to both the applicant and the guarantor.
The guarantor must know the applicant personally, and be confident in their ability to pay back the loan. If the borrower becomes unable to pay the loan back, then the guarantor has to step in and pay it. For this reason, the guarantor themselves has to have a good credit history. Up to £5,000 can be borrowed, and the borrower can pay the loan off early, or pay extra amounts, without incurring any penalty.