Needing or wanting to borrow money is never an easy situation to be in, and it is even worse when you have bad credit. Banks rely entirely on computer systems to tell them whether to accept someone for a loan or not. This means that anyone who has a bad credit history, or even no credit history at all, will be refused instantly, without looking any further into the situation.
So what’s the solution? Borrowing from friends or family isn’t ideal because it can compromise your relationship and lead to awkward situations. Resorting to other forms of lending is also tricky because the companies usually charge exorbitant interest rates where you end up paying back far more than you ever wanted to borrow in the first place.
Amigo Loans invented a new category of loans which bridge the gap between borrowing from banks and borrowing from friends – guarantor loans. With a guarantor loan you benefit from the trust of your friend or family member, but with all the formal and responsible lending that would come with a bank. If you have a bad credit score, a bank would turn you down, but with an Amigo Loan, your friend or family member decides if you are a potential risk or not.
Guarantor loans are all about good trust, not good or bad credit. If someone is willing to act as your guarantor, then Amigo Loans are willing to lend you the money. However, unlike borrowing directly from that friend or family member, everything is set out in a formal agreement on a fixed-term of between 12 and 60 months. If you decide to pay back more than originally agreed, then that’s no problem either, and you won’t be penalised for doing so, as with most other lenders, who charge early settlement fees.