Alternative to Payday Loans
Borrow up to £10,000 with affordable payments
Representative 49.9% APR (variable)
Representative Example: Borrowing £4000 over 36 months, repaying £195.16 per month, total repayable £7025.76. Interest rate 49.9% (variable). Subject to status.
As a cheaper alternative to payday loans, we think our guarantor loans are pretty smart. But we would say that, so have a read and see what you think.
Why choose Amigo Loans as an alternative to payday loans?
Up to 25 times cheaper than payday loans
Trusted, award winning lender
One affordable monthly payment
What are the best payday loan alternatives?
We've all been there - an unexpected bill through the letterbox or the car making some odd noises that shout ‘time for a service'. If you're in need of extra money, a payday loan may seem like a quick fix. But we know better than anyone that a payday loan can be more of an issue than an answer.
If you're not careful, the high APR can quickly become too much and you could soon be in a worse position than when you started. It's not uncommon to become trapped, taking out a new payday loan every month just to repay the interest from previous loans. It's not a nice place to be in, which is why we're so keen to help.
Let's take a quick look at the responsible alternatives to payday loans:
1Guarantor loans
A guarantor is someone who agrees to back up your loan and steps in to make repayments if you don't. These loans allow you to borrow the same amount of money as a payday loan but at a significantly lower rate of interest and over a longer term. In fact, our APR of 49.9% is up to 25 times smaller than that of a typical payday loan, which can often be more than 1000%.
2 Credit unions
Credit Unions typically offer short-term loans with a lower APR, capped at 42.6%, and are usually valued between £50 to £3000. The downside is that you need to be a member of the Credit Union, you may have to save money with them first and they don't tend to have as much flexibility in the services they offer.
3 Bank loans
Banks can lend larger sums of money with an APR ranging from around 3% to 14%. Though this may seem ideal, they require a strong credit history which can make it difficult to be accepted.
4 Borrowing from friends or family
There's no APR involved (assuming you get along with your friends and family), but your family won't be reporting back to the credit reference agencies. This could be a useful option as a one-off but won't help improve your credit rating, so if you need a loan in the future your options could still be limited.
Of the payday loan alternatives, guarantor loans could be the best option for those in need of quick, affordable funding that could help improve your credit score. Our flexible guarantor loans are regularly cited by price comparison sites as a suitable option for anyone borrowing between £2,000 and £10,000, and with an APR up to 25 times smaller than a typical payday loan.
All you require is a guarantor who will be able to keep up repayments if you don't.
Just how different are we?
We’re classed as a ‘mid cost’ lender. Our loans may be more expensive than the banks, but because we’re not looking for the perfect credit score, we’re able to help hundreds of thousands of people the banks won’t, with the help of a guarantor.
At the same time, we're up to 25 times cheaper than a payday loan.
A payday loan alternative without the drawbacks
Let's get down to it. Just what exactly makes Amigo Loans so great?
Straightforward application
We keep things simple - a straightforward application form that could be completed in minutes. Once submitted, you could receive your payday loan alternative to use on any number of responsible purposes. That could be home improvements, buying a new car, or perhaps for debt consolidation to help settle any existing debts.
Flexible, so you get the exact loan you need
Whatever your loan is for, and provided it's responsible, then we have you covered. We offer up to £10,000 which can be repaid between one and five years, depending on what works best for you. This lets you choose an affordable monthly payment plan on a loan that's right for you.
Award Winning
Hopefully, this one speaks for itself:
Settle early and save in interest
We calculate interest on a daily basis, meaning you only pay interest for the time you have the loan. If you can settle early or make overpayments, this means less interest accruing which can save you money in the long run. Let's say you took out a loan over two years but settled after just one, you'd only pay interest for that one year the loan was active. That leaves more money for the things you love.
No Additional Charges
Most banks and lenders add penalties for repaying loans early or for making overpayments. They also add fees and charges if any payments are late. But we don't do that. We promise to never apply any fees or charges. This gives you the flexibility to repay the loan however you want, on top of your regular monthly payments. And if don't want to settle early? We promise you'll never pay back any more than agreed when the loan was paid out, no matter what.
taking control
They helped me to consolidate all my debts to one monthly payment. I'm so happy, thank you!
Amigo Loans as your payday alternative
Let's sum things up. Though most payday lenders will offer a high APR and unreasonable interest rates, we allow you to receive just as much money as a payday loan but for a fraction of the cost. You can then choose to manage the loan in a way that suits you. Either maintain the monthly payments that have been tailored to your circumstances, or make overpayments to settle the loan early and save in interest. Either way, you won't be charged a penny on top of what was agreed.
Have questions?
We've got the answers.
