Compare personal loans in PEI

What types of personal loan lenders are in PEI?

You can apply for personal loans in PEI with the following types of lenders:

• Banks. These loans come with mid-range interest rates and credit score requirements above 660. They’re best for those who have good credit.
• Credit unions. Credit unions offer personal loan interest rates that are equal to or better than banks, but you’ll usually need to be a member to apply. Like banks, they’ll expect you to have a good credit score to qualify.
• Online lenders. Online lenders may come with higher interest rates but their credit score requirements are more flexible. You can typically apply with bad credit, and you’ll get your money faster than with the bank.
• P2P lenders. P2P sites such as goPeer let you borrow money online from everyday Canadians. You need fair to excellent credit to apply in most cases.

What types of personal loans are in PEI?

You can get secured or unsecured personal loans in PEI:

• Unsecured personal loan. You can qualify for unsecured loans based on how good your credit score is. You won’t need an asset to secure your loan, and you can borrow anywhere from $500 to $50,000, depending on your personal finances. Expect to pay higher interest rates for unsecured loans than you do with secured loans.
• Secured personal loan. Secured loans let you borrow money by using collateral such as your home, vehicle or savings account to secure your loan. You can usually borrow against the equity in your asset at lower interest rates than you’d pay with an unsecured loan. Just make sure you can pay your loan back on time or you risk losing your asset if you default.

How to get the best personal loan in PEI

Learn more about each step in the next sections.

1. Get your credit score

Apply for your credit score from either Equifax or TransUnion. You should be able to qualify for most loans with a good to excellent score over 660.

2. Decide on the type of lender

Decide if you want to apply to a bank, credit union, online private lender or peer-to-peer lender. It’s easy to qualify with any type of lender if you have good to excellent credit. You may be limited to online lenders if you have fair or bad credit.

3. Decide on the type of personal loan

Decide whether you want an unsecured or secured loan and if you’ll need a cosigner. Also decide whether your loan should have a fixed interest rate, which means your rate will stay the same throughout the life of the loan, or a variable interest rate, which means your rate will fluctuate with the Bank of Canada’s lending rate.

4. Compare your options

Take time to compare your options through a personal loan broker or by requesting quotes individually from the lenders you’re most interested in. Remember that brokers only work with select partners, so you may want to compare additional lenders just to be sure you’re getting the best deal. You can also use the table above to compare lenders.

5. Get pre-approval

Apply for personal loan pre-approval with your top choices. This involves filling out a quick application specifying your personal details (name, address, phone number, etc.) and employment information. The lender will usually give you a pre-approval offer that specifies how much they’re willing to lend you and at what interest rate.

6. Apply to your #1 choice

Compare your pre-approval offers to pick the best lender and rates. Provide any supporting documents your lender may need, such as pay stubs and bank statements. You’ll also need to provide your banking details so that your lender knows where to deposit your funds and withdraw payments.

7. Review and sign your contract

Once you get an official offer from the lender you choose, make sure to read your contract carefully. Look for information such as how much you’ll pay in interest, how long you have to repay, what your monthly payments will be and whether you’ll have to pay any fees. Once you’re satisfied with your loan terms, sign your loan documents and wait for your loan to be deposited or e-Transferred.

What will I need to meet to get approved for a personal loan?

To qualify for a personal loan in PEI, you’ll need to meet the following criteria:

• Be a Canadian citizen or a permanent resident who is at least 18 years old
• Have a steady income, preferably from full-time employment
• Meet credit score requirements, which vary from lender to lender
• Not currently in bankruptcy or a consumer proposal

How to compare personal loans in PEI

Compare the following factors to find the best personal loans in PEI.

• Interest rates. Compare at least three to four lenders to get a range of suitable offers. Secure your loan with an asset or get a cosigner to lock in the best rates. Learn more about personal loan rates.
• Loan amounts. You may qualify for amounts up to $50,000, but lenders vary in their loan amount ranges and how much they’re willing to lend to you.
• Turnaround time. Banks, credit unions and P2P lenders may take a few days to a few weeks. Most online lenders can get you money in under 48 hours. If you’re facing an emergency, you may need to apply for emergency loans.
• Loan term. Loan terms can be as short as 3 months or as long as 60 months. They can be longer if you’re securing your loan with your home. Aim for shorter terms to save on interest, but make sure you can still afford your monthly payments.
• Fees. Some lenders charge admin fees, NSF fees, late fees and early repayment fees. Read your contract carefully to make sure you’re not getting charged too much. Learn more about personal loan costs.
• Company reputation. Avoid personal loan scams by applying to a legitimate lender. Search for online reviews on the lender on sites like Google, Trustpilot and the Better Business Bureau.

What information and documents will I need to provide?

To apply for a personal loan in PEI, you may need to provide the following:

• Identity documents. Government-issued ID such as your passport or driver’s licence.
• Proof of income and employment. Bank statements, pay stubs, tax records, proof of government benefits (such as EI) or letter of employment.
• Debt-to-asset ratio. Lists of assets and debts to make sure you can qualify for funding.
• Social Insurance Number. You may also need to input your SIN so your lender can check your credit.

Keep in mind, if you opt for instant bank verification, you won’t need to submit documents. Learn more about bank verification for loans.

How much are personal loans in PEI?

The cost of your personal loan is made up of your interest rates and fees.

• Interest rates. You’ll typically pay from 6.99%–46.96%, depending on your credit and whether you have collateral or a cosigner.
• Fees. Some loans come with set-up fees that are baked into your APR. You may also have to pay late fees, NSF fees and early repayment charges, among others.

Example: $10,000 loan over three vs five years at 9.99%, 14.99% and 17.99%

The monthly payment on a $10,000 personal loan depends on your interest rate and loan term. Below is a breakdown of a $10,000 loan over three vs five years at 9.99%, 14.99% and 17.99% (for illustration purposes only).

Can I get a personal loan in PEI with bad credit?

You can definitely get personal loans in PEI with bad credit. You just need to check the lender’s eligibility criteria to see what their requirements are. Most lenders will advertise on their website that they cater to clients with bad credit. You can also apply with a broker to figure out which lenders you’re eligible to work with, without having to manually compare your options.

To get approved for a personal loan with bad credit, you’ll need to show the lender there’s room for a new loan, given your current monthly income and debts.

Tips to get the right personal loan for bad credit

Keep these tips in mind if you need to apply for bad credit loans in PEI:

1. Get a quote first. Apply for several quotes to get an idea of what rates you qualify for. Examples of direct lenders that give quotes without affecting your credit score include Mogo and Fairstone.
2. Secure or guarantee your loan. You can secure your loan with an asset such as your car to get lower interest rates. You may also be able to enlist a cosigner to qualify for a better deal.
3. Avoid guaranteed approval loans. If a lender promises to give you a loan without checking your credit or validating your personal information, it’s probably a scam. These lenders may attempt to steal your personal information or charge predatory rates.

Can I get a personal loan in PEI with no credit check?

Most lenders offering personal loans in PEI will require you to undergo a credit check to qualify for a loan. Some lenders will require a hard credit check, which can temporarily bring down your credit score, or a soft credit check, which has no impact on your score.

You’ll usually only be able to get away with no credit check if you apply for small amounts (up to $1,500) with payday lenders. However, these loans should be avoided wherever possible as they come with extremely high interest rates.

How will a personal loan affect my credit score?

Personal loans can affect your credit in one of two ways:

1. Your credit score goes up. Your score will go up if you make regular on-time payments as long as your lender reports your payments to the credit bureaus.
2. Your credit score goes down. Your score may temporarily go down when your lender checks your credit report at the time of application. It will also go down if you miss payments, make late payments or fail to pay back your loan altogether.

Frequently asked questions

• How much can I borrow with personal loans in PEI?

  You can borrow between $500 and $50,000. The amount you qualify for will depend on factors such as your credit score, income, employment status and collateral.

• What can I use personal loans for in PEI?

  You can use personal loans for just about anything. People often take out loans to cover the cost of school, consolidate debt, renovate a home, buy a car and pay bills.

• Can I get a personal loan in PEI if I'm self-employed?

  Yes. Banks and credit unions can lend to you as long as you demonstrate reliable self-employment income in the last three years. If you can't get approved by a bank or credit union, you can apply to an online lender.

• Can I get a personal loan in PEI if I have no job?

  It depends on the lender. Some lenders are strict on the no job, no loan rule. Others will let you qualify with income from unemployment (EI), pension (CPP or private), child tax benefit, disability, maternity and other forms of non-traditional income. Learn more about loans with no job verification.