New from The Richmond Group: The Amigo Store at www.amigostore.co.uk
Amigo Loans has maintained their status as the market leading guarantor lender in 2016. The key ingredient to their momentum has really been their continual approach to product development. There has for instance been a recent increase on the available loan amounts that previously headed up to £5000, with the limit now standing at £7500. There was past confusion on broker fees whereby it was unclear whether or not the customer was billed on a brokerage fee. It now states on their site that they pay commissions up to 20% of the amount borrowed. They’ll only be paying 20% on sums that are low, with capping likely being set at around £400.
Anyway, they take care of any fee and so customers don’t need to worry about that. What caused some confusion was that they have always displayed a variable interest rate (rather than fixed) that suggested that they were bumping up costs. Moving on to the main point of topic today we have the launch of the Amigo Store at www.amigostore.co.uk. This does look to be a newly devised project with this site only being registered back in February 2016. What you’ll find here is a simple gateway to purchase everyday goods, but unlike a finance contract the funds are placed on a guarantor loan agreement. The Store’s main categories are Appliances, Baby, Computing, Entertainment, Furniture and Mobile.
When testing out some shopping items the repayment terms were generally headed between 12 and 24 months. This will change based on the level of credit that you are accessing when adding items to your basket (max will always be 5 years). When moving forward to apply you are actually redirected back to the main www.amigoloans.co.uk website. The headline reads that they are up to 50% cheaper than BrightHouse. The interest here is 49.9% APR whilst when we checked BrightHouse they were set at 69.9% (and not 99.9% as Amigo’s notice stated). So, is it a good idea to head over and start shopping for a new giant TV or the latest smartphone model?
We’d personally avoid spreading the cost at a rate close to 50%. When you do have poor credit guarantor loans are ideal when consolidating several debts. It makes sense to settle up before borrowing again that should eventually open the doors to lower interest rates. Amigo’s rate may be high, but you can access as much as £7500. One of the issues with the Argos Card (not Credit Card) is that limits are typically cut to several hundred depending on your status. This is a shame as they have a buy now pay Jan 2017 promotion (in May 2016 now). APR then follows at 29.9%. In delaying you can settle the balance early without paying any interest.