Credit Building > What was Amigo Loans and how to find a guarantor now?

What was Amigo Loans and how to find a guarantor now?

Wollit Team1 minute read · Updated 3rd July 2024

Amigo Loans was a lender that used to offer guarantor loans and also a guarantor service if you couldn’t find a guarantor. However, they’re no longer operating. Here are your options now.

What is a guarantor loan?

A guarantor loan is a kind of personal loan that requires a borrower to have a guarantor co-sign the loan agreement.

The guarantor basically acts as a safety net for the lender, agreeing to take over the loan repayments if the borrower defaults.

This arrangement allows people with poor credit scores or even no credit history at all to get loans they might not otherwise qualify for.

How can I find a guarantor now without Amigo Loans?

With Amigo Loans no longer operating, you will unfortunately have to look elsewhere for a guarantor. The default option is to ask a friend or family member. However, remember that if you fail to make repayments on the loan, it will be your guarantor on the hook.

Not only this, but both your credit scores will take a hit. Be mindful to put the relationship first and to pay the loan on time so you don’t put the guarantor at risk.

Also, if finding a suitable guarantor is hard, you may want to consider alternative options, like:

Secured loans: These loans are secured against an asset, like a home or car, which can make them easier to qualify for if you have a poor credit score.
Credit unions: Credit unions may offer more flexible lending criteria and lower interest rates for borrowers with poor credit scores.
Finally, improving credit score. While not technically a loan, improving your credit score can make you eligible for a loan or credit card without having to rely on a guarantor.

One of the ways to improve your score is to download a credit-building app like Wollit. Wollit reports your fixed fee monthly subscription as a loan repayment to the credit reference agencies (Experian, Equifax, and TransUnion).

This helps you improve your credit history by showing that you can pay debt on time, one of the main factors that influences your credit score.

On top of this, Wollit can also report your monthly rent payment to Experian, adding another line in your credit report that shows lenders you're responsible and pay your bills on time. Eventually, this will help you get the loans you want on the terms you want, without a guarantor and without a service like the one Amigo Loans used to provide.