Bad Credit Car Loans PEI

Prince Edward Island, the “Land of Anne” for Canadians, is located about 120 miles north of Halifax, Nova Scotia. It is the smallest province of Canada, yet home to over 25 auto dealerships. Goes to show how driving around to enjoy the scenic island with ease could be essential for most Canadians. However, getting a new set of wheels with bad credit history can be stressful, but it doesn’t have to be. Arranging a bad credit car loan through 902 Auto Sales can be fast and easy as customers have many options to choose from when it comes to buying a used vehicle via car financing. Below is a summary of every step you need to take for a PEI loan approval with a poor credit score.

To get a car loan approval in this province, a driver’s license along with proof of income, insurance & residency has to be provided. Your lender will check your credit score to measure rates and assess all information provided before they qualify you for a loan.

Most traditional banks will not consider bad credit applicants to ensure profits by limiting exposure to risk. A credit union, however, is a member-owned institution insured by the NCUA that returns all profits back to its members. This means more affordable financial products and lower interest for the customers for lenient loan approvals considering poor scores.

Many of the facilities collaborate with online lending networks to take credit decisions within minutes. 902 will sanction your loan on the same day, depending on when you start the process and get you shopping right away for your next vehicle. After completion, the lender will forward your money providing a pre-approved loan certificate that you can carry to the dealer to finish your car financing.

With thousands of available options, the first step of choosing a lender can be a daunting process. To go for the right lender you must evaluate factors like interest rate, repayment terms, fees, and company reputation for a good borrowing experience. 902 will make sure you find the best deal considering all these factors, for your convenience.

Since auto loans for bad credit often come with higher interest rates, shopping around with online lenders, banks, dealers, and credit unions, to compare loan offers is essential for the best deal. We’ve rounded up some of our best picks below for consideration:

Good for unemployed people: Credit Acceptance Corp.

Credit Acceptance Corp. specializes in providing auto loans for people experiencing unemployment difficulties.

Good for one-stop shopping: Carvana

Save time by shopping for financing and a vehicle in one place. Carvana considers applicants with poor scores as well.

Good for people who have filed bankruptcy: RoadLoans

RoadLoans considers applicants who have filed for bankruptcies in the past — as long as the

it has been discharged.

A car loan with a 500 credit score is possible to get, but it’s pricey. According to information collected from the credit bureau, people with ratings of 500 or lower earned an average rate of 13.97% for new-car loans and 20.67% percent for used-car loans which is much higher than rates of people with good credit scores. Another survey by a credit specialist reveals that only 0.37% of new-car loans and 4.35% of used-car loans issued in 2019 went to individuals with 500 or lower credit scores.

Measuring interest rates

Your rate is based on a number of factors, such as your credit, income level, employment history, and loan amount.

Although bankruptcies can be bad news for your credit ratings, it’s always possible to get a car loan approval in this province. But you may want to wait until your bankruptcy is finalized before you begin applying. Here are four things to help you get poor credit car loans before you enter a dealership and apply for financing services.

Credit Review

Before a big acquisition, like your next vehicle, ensure that all information is correct on your credit

reports and challenge anything that isn’t.

Rebuilding credit

Secured credit cards, credit builder loans, or being an approved consumer on the credit cards of friends and family will help restore your credit.

Saving for a down payment

Applying the general rule of thumb put at least 20% down to reduce interest rates and increase the chances of your car loan approval.

Shop around

To help find the best auto loan deal for your financing, compare car loan rates and company terms from various lenders within any location in Prince Edward Island (PEI).

Now more than ever, lenders are willing to extend poor credit auto loans to borrowers. Due to the surplus of used vehicles, and the competition in services of auto financing provided by the online lending markets, a car dealership from any location in the province would look for more customers now. You can improve approval odds of bad credit car loans by:

Adding a trade-in vehicle

Trade-ins decrease the price of the transaction and raise your stake in the purchase. The lower the price, the less you borrow from the company.

Offering up collateral

Since bad credit info makes you a risky client, your lender will want more reassurance. You can ensure that by securing your loan against your valued property (home). Your assets might be seized by the lender if you default for too long.

Large down payment

While it’s not a requirement, putting more money down upon purchase will make you more creditworthy.

Finding co-signer 

Your loan should be co-signed by someone with good credit and financial health to make you more creditworthy. Your co-signer usually takes responsibility for your remaining balance if you default!

Long Term vs. Short Term Loans

Go for a shorter loan term to further lower interest rate. Don’t give in to lower monthly payments with longer-term loans as you’ll be paying more for the vehicle overall.

Cars nowadays are so well-built that before eliminating the vehicle, you can experience 200,000- 300,000 miles of service without a problem. When you choose the right lenders and car dealers, arranging bad credit car loans can be easy. It is also much simpler and cheaper to get a bad credit car through this process than to purchase a new vehicle.