I applied for car recently. It was declined due to bad credit record. My employer is willing to come in as a surety. Is this possible or do credit providers consider such thing?
Thank you for the question.
It’s possible that your employer can vouch for you as a sponsor. And could strengthen your loan application. But, there’s no guarantee that the bank will allow the financing. Depending on the structure of the surety there will probably be an affordability assessment done on your employer as well.
If the bank does not approve the surety you can ask your employer to amend your payslip, so that it shows a vehicle allowance. Or your employer can buy the vehicle and deduct an agreed upon monthly amount from your salary.
It’s extremely important however to make sure that you can afford a vehicle and that it would not cause you to become over-indebted.
Have a great day.