If you are in need of a guarantor loan, Amigo Loans is a company that you might have stumbled upon. They offer personal loans with the help of a family member or friend acting as a guarantor, which can be useful for those with a poor credit score. However, if you have been researching Amigo Loans online, you may have come across some negative reviews and feedback. In this article, we will discuss Amigo Loans bad reviews and what you need to know before applying for a loan.
What are guarantor loans?
Before we dive into Amigo Loans, let’s discuss guarantor loans in general. A guarantor loan is a type of personal loan that requires a third-party to act as a guarantor for the borrower. This means that if the borrower is unable to make payments on the loan, the guarantor is responsible for making payments on their behalf. Guarantor loans can be helpful for those with poor credit scores, as having a guarantor can make lenders more willing to lend money.
What is Amigo Loans?
Amigo Loans is a UK-based company that offers guarantor loans to those who have been declined by traditional lenders, such as banks or building societies. Amigo Loans has been operating since 2005 and boasts of lending to over 100,000 customers. The company has also been awarded many accolades, including winning the “Best Guarantor Loan Provider” award at the Consumer Credit Awards in 2020.
What are some of the negative reviews of Amigo Loans?
Despite the company’s accolades, there have been negative reviews and feedback online regarding Amigo Loans. Some of the main complaints include:
1. High-interest rates – One of the main complaints about Amigo Loans is their high-interest rates. Many customers have reported APRs ranging from 49.9% to 79.9%, which is significantly higher than traditional lenders.
2. Pressure to make payments – Some customers have reported feeling pressured by Amigo Loans to make payments, even if they are experiencing financial difficulty. This has led some customers to take out additional loans to make payments on their Amigo Loans.
3. Poor customer service – Many customers have reported poor customer service from Amigo Loans. This includes difficulties in contacting customer service representatives, as well as unhelpful or unsympathetic responses.
4. Difficulty in getting out of loans – Some customers have reported difficulty in getting out of their loans with Amigo Loans. Even if they are able to make payments, they may not be able to refinance or pay off the loan early without paying a penalty fee.
What does Amigo Loans have to say about these negative reviews?
Amigo Loans has responded to some of the negative reviews by stating that they take all complaints seriously and strive to improve customer service. The company also states that their interest rates are higher than traditional lenders because they take on higher risk borrowers. Amigo Loans has also stated that they work with customers who are experiencing financial difficulty by offering payment plans and forbearance options.
What should you do if you are considering a loan with Amigo Loans?
If you are considering taking out a loan with Amigo Loans, it is important to do your research and carefully consider the risks and benefits. While having a guarantor can make it easier to secure a loan, it also means that your guarantor is responsible for making payments if you are unable to do so.
You should also carefully read the terms and conditions of the loan, including the interest rate, fees, and repayment options. Make sure that you can afford the monthly payments and that you understand the consequences if you are unable to make payments.
Finally, it is important to consider other lenders and options for borrowing before committing to a loan with Amigo Loans. There may be other lenders who offer lower interest rates or better terms for the loan.
In conclusion, while Amigo Loans has some negative reviews online, it is important to remember that every loan and lender has its risks and benefits. It is up to you to carefully consider all options and choose the best lender and loan for your financial situation.