Can I have a guarantor help me with a truck loan?

If you’re looking at applying for a truck loan, you might be considering using a guarantor as added security. Depending on your lender and the type of loan that you are applying for, you may be able to use a guarantor. However, a guarantor is not always necessary, and many loans do not require one for you to be approved.

Read on below to find out more about truck loans and guarantors.

Can I have a guarantor help me with a truck loan?

A guarantor is generally a family member or a friend who has agreed to make your truck loan repayments if you default on your loan. A guarantor’s role in a truck loan is to be legally responsible for the full value of the loan, plus the associated costs if you find that you are unable to pay them yourself.

Usually, it is the guarantor’s responsibility to make sure the loan, interest, fees and charges are repaid on time. Otherwise, the guarantor may be asked to repay the remaining amount. If your guarantor cannot afford to make the repayments, the truck may be seized and sold by your lender to cover their losses.

Having a guarantor for a truck loan can be useful for those who might struggle to get approved on their own. Having a guarantor means that there is less risk for the lender, as there is a backup if the borrower cannot make their repayments.

In most cases, the role of a guarantor is usually taken on by a family member or a close friend, due to the fact that it is a big responsibility to take on someone else’s debt in the event that they cannot repay it.

Your lender may ask both you and your guarantor to provide details such as credit scores, bank statements, proof of income and any current debts. Generally, a guarantor must be able to prove they have a good credit rating and are currently employed with a stable income.

Is a guarantor necessary for a truck loan?

Generally speaking, a guarantor may not be necessary for a truck loan if you can prove to your lender that you can make your repayments yourself and that you are not a risk to lend to. If you can supply all of the documents that your lender requires and you can prove that you have a stable and regular income, your lender may not necessarily require a guarantor, even if you have a bad credit score.

You may find it best to discuss the possibility of a guarantor with your lender before you settle on a loan.

Where does Tiger Finance come in?

We have helped countless Australians with both good and bad credit ratings to be funded for their dream truck. The lending criteria from other lenders can be far too strict when you have bad credit.

With Tiger Finance, we can help to get you a loan in four easy steps. You will have a free consultation with one of our specialists, and we will tailor-make you a loan. We will negotiate with lenders on your behalf before you are approved. You won’t find an easier way to get approved for a bad credit truck loan.

How we can help

Tiger Finance is here to help you to get your dream truck regardless of your credit score. We can make the process simple and pain-free. With our quick application process, we can have you approved on the same day that you apply if you’re able to meet our criteria. Our loan specialists will make the entire process stress-free.

If you’re ready to drive away in your new truck, call us today for your free initial consultation with one of our loan specialists.