Has past money mismanagement or just plain bad luck tarnished your credit history? Have retailers, banks and other lenders denied you leases, loans and credit cards as a result? If so, you’re not alone. According to Kelly Davies, Chief Communications Officer at Amigo Loans, a UK company offering guarantor loans for people with poor or no credit, 12 million consumers are unable to borrow from banks because of their credit score.
“In 1970, the first credit score was invented,” Davies told RewardExpert. “It was the beginning of the end for community banking. Over time, relationships became less important, computers took over, and pretty soon a number on your file was all that mattered. It’s still very difficult for people in the UK, who don’t have much of a credit history or a few black marks on their credit file, to obtain much needed finance to help their lives.”
Fortunately, UK borrowers have another option. Rather than turning to payday loans with exorbitant interest rates and unfavorable terms, you can now obtain a guarantor loan from Amigo Loans and begin rebuilding your credit.
A Fair and Responsible Lending Alternative
“Amigo was inspired when its founder, the entrepreneur James Benamor, was setting up his first company,” Davies explained. “James was turned down by the banks and mainstream lending because he had a poor credit score.”
Davies said Benamor had to lease a computer with the help of a family member because without it, he wouldn’t be able to start his business.
“James was inspired by his experience and identified this as a huge problem in the UK that required a solution,” she continued. “Honest, ordinary and hard-working people were being unfairly shunned by banks because a credit score said they weren’t good enough.”
Benamor founded Amigo Loans to offer a fair and responsible alternative for people in desperate need of more choice.
“Amigo’s guarantor-based loans work on the basis of trust and a human approach,” Davies said. “Friends or family will vouch for the borrower and support their application—paying if the borrower doesn’t. Amigo has helped hundreds of thousands of people to fulfil their dreams, consolidate their debts, and give them the financial freedom they deserve while improving their credit score in the process to give them better access to mainstream financial products in the future.”
As one of the most well-known brands in the UK alternative finance market, Amigo Loans has helped over 300,000 customers since its founding, lending over £1billion.
Financing for People From All Walks of Life
Davies said Amigo Loans’ customers range from 18 to 75 years of age and are people “from all walks of life who would have previously struggled to finance their future.”
“Amigo specializes in one thing and doing one thing really well,” she added. “The guarantor loan product has one clear interest rate with no fees and no charges. Customers will only ever pay the amount they agreed to when applying for their loan.”
Amigo Loans reports all payments to the three major credit referencing agencies, so customers will see an improvement in their credit score as they pay down their loan balance.
To apply for a guarantor loan, you simply need to visit the Amigo Loans website and complete the online application. Information required includes the amount you’d like to borrow, desired repayment term, and budget details. Amigo will then send you a link that you can send to your guarantor.
Once your guarantor has filled out his or her portion of the application, Amigo Loans will deposit funds in the guarantor’s account within 24 hours of approval. Your guarantor will then need to transfer the money to you.
In addition to an annual percentage rate (APR) that is less than the typical interest rate on a payday loan, Amigo Loans offers its customers real-time statements, 24/7 online account access and the ease of automatic direct debit payments. Additional loan payments may be made by credit card, online, over the phone or in cash at 22,000 PayPoint locations in the UK.
“Customers can trust Amigo,” Davies said. “A responsible lender, we will only lend money to people who can afford the repayments. Customers can feel assured they’re with a reputable company that will care about them and work with them fairly and honestly.”
Learn more about Amigo Loans at amigoloans.co.uk.