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Loans for Unemployed People

If you are out of work, it can be tough on your finances. Maybe you had an accident and are now too ill to work, or you might’ve been made redundant through no fault of your own. This can make unexpected costs such as boiler breakdowns, car repairs or expensive dental bills become even more of a problem.

To make matters worse, getting loans when you are on benefits or unemployed can be a lot harder for you than for those in employment, particularly if you have a low credit score. Regardless of your circumstances, if you are unemployed, you are less likely to be considered for a loan by any of the traditional high street lenders.

Amigo Guarantor loans - as seen on TV

If you’re unemployed, on benefits, or if your credit score is low, you may still be able to borrow from Amigo. This is because we work in the traditional was banks did in the old days – by putting relationships and trust above computer-generated credit scores. We get to know our customers as individuals, ensuring you will be treated fairly and with respect.

At Amigo, all you need is to be aged 18-75; not currently bankrupt, in an IVA (or similar); able to afford the repayments; and importantly, have a guarantor who agrees to make the loan repayments if you do not.

Your guarantor must be aged 18-75, able to afford the repayments and have a strong credit history. Although they do not have to own their own home, they will be more likely to be accepted if they do.

Loan Calculator

Representative Example:

You're borrowing £4,000

Over a term of 36 months

Repayment £195.16 per month

Total repayable £7025.76

Interest rate 49.9% (variable)

Representative 49.9% APR (variable)

Loans for people on benefits

There are many reasons why you may be currently unemployed or on benefits. For example, a disability or injury could prevent you from being in full time employment and also require costly modifications to homes or vehicles. Unfortunately, being on disability benefits could mean it is more difficult to get a conventional bank loan.

People on unemployment benefits, such as jobseekers allowance or those who have been made redundant, may need a loan to improve their job prospects. Perhaps you need to buy a car to get to work or a course to give you new skills or qualifications. Guarantor loans for unemployed people can be an effective way of helping to get back on your feet.

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Guarantor loans for unemployed people

A guarantor loan from Amigo can not only be a great way to borrow money if you’re unemployed, but it could also give you the chance to improve your credit rating as you borrow. We reward our customers by reporting back their successful payments each month to the credit bureaus. By making your regular monthly repayments, and keeping up with all your other financial obligations, your credit score can steadily improve.

Why you should avoid doorstep loans

Doorstep loans can be unsuitable for a number of reasons. There are lots of lenders out there that will offer doorstep loans for people on benefits, but they can come at a very high cost. Additionally, it’s not always easy to tell whether the lender is authorised by the Financial Conduct Authority (FCA). All lenders that operate within the UK should be authorised to operate by the FCA, and if they aren’t, then you won’t be protected by national regulations and could be a victim of fraud. You can also be certain that they are less likely to treat you fairly.

Why you should avoid payday loans

Payday loans for unemployed people can be a tempting option. But there’s a reason that payday loans have such a bad reputation. Whilst they can be easy to get, even with a poor credit score, they are often not a suitable or affordable option and can be more expensive than a guarantor loan.

Payday loans are only a very short-term solution, and people are often forced to take out another payday loan just to pay the old one off. This can be a cycle that is difficult to get out of, especially for people on a very low income.

Instead of taking a risk with a high-cost payday loan or a potentially untrustworthy doorstep lender, why not speak with someone you know and trust about being a guarantor on an Amigo loan and complete our five minute application today.

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