Back in the old days, financial institutions such as banks worked on trust, and cordial customer relationships. If you wanted a loan to fix a pressing need, you would simply need to ask someone whom you trusted to guarantee it. Simple! But things have changed. Today, computer generated credit scores have taken over, and millions of people have been left out in the cold because their scores don’t fit the bank’s stringent criteria. This gap has now been filled by guarantor loan companies such as, Amigo loans and other short term lenders.
Amigo Loans Ltd is an FCA approved loan provider in the UK. They offer guarantor loans which are a payday loan alternative. Amigo loans are the UK’s longest-serving guarantor loans company serving borrowers who have been turned away from banks due to poor credit history. Applications are via the Amigo login site.
What Is A Guarantor Loan?
Amigo loans work on a strict guarantor policy where a borrower must have a backup person who will cosign the loan in case of defaulted. This essentially means that the guarantor will be called upon to pay back the loan in full amount in case the borrower can’t make the payments. Most lenders stipulate in their website guarantor’s policy, that the guarantor fulfils the following conditions for eligibility:
• Must be a homeowner
• Aged between 18 to 70 years
• Doesn’t have a history of poor credit or failed payments
• Can afford to take on the payment of the loan if the borrower defaults
The company then conducts a ‘soft search’ on the guarantor. This involves going through their credit history with a fine-tooth comb. They track their records of repaid or unpaid debts and make the findings available on the guarantor’s credit report. The credit report, however, doesn’t affect the guarantor’s chances of acquiring a loan if they choose to apply for one.
The fact that the guarantor should be a homeowner is not a future collateral requirement but rather reflects on their financial stability.
The Responsibilities of a Guarantor
It seems like a huge burden of the loan falls on the guarantor when looking into the loan situation in depth. The borrower will use the guarantor as a safety net in case they are unable to pay back the loan. If in the course of the loan payback time, the borrower develops a personal vendetta against the guarantor, they may choose to burden the guarantor with the loan intentionally.
But then again, if a person believes in the borrower’s financial dream, they may choose to be a guarantor.
A guarantor has a legal commitment to be liable for repaying the loan. Amigo loans terms and conditions stipulate that they will try to recover the loan from the borrower and guarantor by any means including debit and credit card payments.
The guarantor will pay a higher amount due to the accumulated interest charges on the unrepaid loan.
Guarantor Loans Alternatives
Payday loans are a convenient alternative to guarantor loans if you really don’t like the idea of finding a guarantor. Besides, it may seem unfair to tie another person to your financial obligations, especially when you want to maintain your independence.
Additionally some may prefer that their loan acquisitions are a personal affair. Do you want everyone to know the intricacies of your finances? That is why you may decide to opt for a guarantor loan alternative like a short term loan. If you had to ask someone to guarantee you today, who would you ask?
Asking a colleague at work could be awkward. If you have no family or friends who are homeowners, you may be pushed to ask your landlord. Which could be awkward.
In 2018 more and more people around the world are going for the more easily accessible payday loans. Now, payday loan companies are even sponsoring prime-time TV programmes. And why is that? Well, they are often more receptive and have numerous advantages over guarantor loans. When you are in a financial emergency and need instant quick cash, payday loans may be right for you. Payday loans are, however, not recommended for making long-term financial decisions.
Moneyboat.co.uk: A Trusted Online Payday Lender
Are you looking for payday loans? Try Moneyboat.co.uk to experience a simple, fair, convenient, and flexible guarantor loan alternative.
Moneyboat.co.uk is a direct payday lender in the UK that is FCA approved and regulated. If you find yourself stuck in an emergency situation, no need to clutch at straws. You can count on us to offer you an emergency payday loan to assist your short-term financial situation.
Similarities between Amigo loans and moneyboat.co.uk
• Are lenders in the UK that are authorised and regulated by the FCA.
• Offer loans to people who are not eligible for bank loans due to poor or no credit history
•Have an online website where the borrower can choose the loan amount they need and how long they want the loan to last
• Use the APR variable to calculate the loan amount the borrower will have to pay back at the end of the borrowing period
• On approval, both companies pay out the loan to the borrower’s bank account within 24 hours
• Do not impose extra charges on the borrower for extra payments or an early loan settlement
• Run credit checks on their borrowers to ensure that they aren’t bankrupt and can pay back the loan.
What Makes Moneyboat Uniquely Different From Amigo Loans?
- Moneyboat.co.uk does not require you to have a guarantor upon application for a loan, but a guarantor is compulsory for Amigo loans
- Moneyboat offers loans to people who can show official employment. Amigo loans may offer loans to anyone that isn’t an IVA or currently bankrupt
- To be approved for a guarantor loan, customers must first source and sign in the guarantor before the loan is processed.
- Moneyboat.co.uk loan application process is fast and straightforward. Once the borrower fills in their details and a credit check is conducted to confirm their eligibility, the process is complete. The amount borrowed is then deposited into the customer’s bank account.
- In case a borrower defaults in payment, Moneyboat.co.uk would call the borrower to understand their reasons and look for a solution. With a guarantor loan, the guarantor signed into the agreement will face the loan repayment responsibility.
- Amigo loans have a 49.9% APR since the credit is spread out over a more extended period while moneyboat.co.uk has a representative APR of 939.5% since it is a short-term loan.
Minimum Requirements For a Guarantor Loan
Amigo loans stipulate the following requirements for any customer sourcing for a loan with them:
• Borrower must be 18 to 75 years of age
• The borrower should not be currently declared bankrupt or an IVA or its equivalent
• A guarantor aged 18 to 75 years must be a co-signer on the loan agreement
What Are the Minimum Requirements For a Guarantor Loan Alternative?
Moneyboat.co.uk stipulates the following minimum requirements for all its borrowers:
• A minimum net pay of £1,000 per month
• Self-employed, fully or partially employed
• The borrower must be at least 18 years old to qualify
• The borrower is a bank account or debit card holder
Why Should You Compare The Different Loan Providers Available?
A loan is not a source of free money. That being said, the moment you decide to take out a loan, you should shop around for the best deal available. Protect yourself from scams by not handing over your money to companies offering loans with minimal regulations.
The loan provider you choose will depend on:
1. The purpose of the loan
2. Time you will need to pay back the loan
3. Amount needed
Are you looking to start a business or just to fix up your car?
If you are taking a loan for an investment, then a guarantor loan could be more suitable, allowing you more time to pay it back. On the on the hand, if you need the money to fix your leaking roof before your salary comes in, then Moneyboat.co.uk is your go-to the company.
At Moneyboat.co.uk we offer our customers a minimum amount of £200 and a maximum loan of £800 for the new customers. Frequent customers get the chance to borrow up to £1500.
Amigo loans offer long-term loans where a borrower can obtain a minimum of £500 and a maximum amount of £10,000. The minimum payback period is 12 months with a maximum of 60 months.
Due diligence when shopping for a loan is paramount. Making comparisons will get you the best loan policy and will certainly keep you out of bad debt. It is advisable to go online and read through what each site offers before fully committing to one. Understand their small print. Some sites are made by scammers who offer ghost loans or take money out of your bank account even after you repay the full loan amount. DO NOT apply for a loan if you are asked to give money in advance.
Moneyboat UK will never ask you to pay for your loan earlier than the time stated in your policy. We will also never ask you to pay upfront before you take out the loan. Our aim is to help you out of your financial bind.
Are Guarantor Loan Alternatives Good for You?
Amigo loans or other guarantor loans could be a positive choice if you are thinking long-term. It’s important to ensure that you can handle the interest charges on your loan. You may, however, not want to be committed to an expensive loan for six months when in fact the issue you are dealing with is short term.
The online customer review communities will give you an insight into whether the services offered by the lending company are legitimate or not.
A simple search on the internet will reveal a lot about a lending company – the good, the bad and the ugly. Make your decision based on the positives that you find. The Amigo login site has a customer review section for customers complains and comments. The same applies to Moneyboat.co.uk.
Community Opinions and Experiences
Moneyboat.co.uk has a 4.7 customer rating on reviewcenter.co.uk. We ensure fast service and offer cheaper interest rates than other payday loan companies who have an APR of up to 1, 386%. Log into our site and learn more about our offers.
Amigo loans are good for anyone that can find a guarantor easily and can afford the repayments. Moneyboat UK loans are good for people looking for an emergency financial bail-out. We are proud of our payday loan services and our customer support staff that make the lending process easy.
Visit our site if you need a payday loan for a short-term financial situation.