Filters
- Amount
- Up to $35,000
- Rate
- 9.99% – 34.95%
- Term
- 9 – 78 Months
- Amount
- Up to $60,000†
- Rate
- 19.99% – 34.99%*
- Term
- 6 – 120 months
- Amount
- Up to $10,000
- Rate
- Varies by product
- Term
- Varies by product
Applying for a loan with bad credit can feel daunting, as many banks require borrowers to have good credit. If you’re in need of a loan, but don’t know what your options are due to bad credit, we’ve got you covered. Here’s everything you need to know about getting a loan with bad credit in PEI.
Can You Get A Loan With Bad Credit In PEI?
While your options may be limited, you can still qualify for a loan with bad credit. Generally, alternative lenders such as credit unions and private lenders are more open to working with borrowers who have bad credit. They approve applicants based on their overall financial health, which usually includes income, job stability, debt level and other factors. Credit scores may be looked at, but depending on the lender, it may carry little to no weight.
What Types Of Loans Can You Get With Bad Credit?
Getting approved for a loan from a bank can be difficult if you have bad credit. You may have more access to different types of loans if you apply with a private lender. These lenders generally place more emphasis on your overall financial situation than your credit score.
That said, while these loans may be more easily accessible, they can come with high interest rates. Here’s a list of loans you may qualify for and their features:
Personal Loans
You can get a regular personal loan that you pay in installments from multiple private lenders in PEI. You can find loans up to $35,000 or more, depending on the lender and your financial profile. Terms can range from as little as 3 months up to 5 years or more.
Just be aware that they will likely charge a higher interest rate, usually between 9.99% to 35%, so be sure to factor that in before you apply.
Best For: Big purchases or expenses such as a medical bill, renovations or car repair.
| Note. You can increase your odds of approval and secure better loan terms if you offer the lender some form of security. This may include a cosigner or an asset such as your car or home. |
Payday Loans
A payday loan is the easiest but most expensive type of loan on the market. You can get up to $1,500 within 24 hours, or in some cases, the same day you apply. They’re a great source of quick cash, especially for those who can’t qualify for regular loans due to bad credit.
To qualify for a payday loan, you usually just need to demonstrate that you have enough income to pay back the loan. Some lenders accept income from alternative sources such as pensions or government benefits.
Best For: Small emergencies where you need cash immediately.
Learn more: Payday Loans
Cash Advances
If you need a small amount of cash to tide you over till your next paycheque, consider these options:
| Credit Card Cash Advance | Get up to your cash advance credit limit. Interest rates generally range around 30%. | Learn More |
| Bree | Get up to $500 with Bree with zero interest. | Learn More |
| Nyble | Get up to $250 with Nyble without interest. | Learn More |
| Koho Cover | Get up to $250 without interest. | Learn More |
Car Loans
A car loan can be easier to qualify for with bad credit than a personal loan. This is because the car itself is used as collateral, which reduces the lender’s risk. That said, you’ll likely be charged a higher than average car loan interest rate, and your ability to qualify for special 0% car financing won’t likely be possible.
What Do You Need To Qualify For A Loan With Bad Credit?
While requirements vary by lender, most will asses and require the fowllowing:
- You must be a Canadian resident who is at least 18 years old (the age of majority in PEI)
- You must meet the lender’s minimum income requirements, which vary by lender.
- You must be steadily employed. Many lenders require you to be employed with your current employer for at least 3 – 6 months. That said, some lenders, particularly payday lenders, may accept non-employment income such as disability, pension or other government benefits.
- Your debt-to-income ratio must be low enough to handle your new loan payments. Most lenders require your DTI to be under 45%.
How To Apply for a Loan If You Have Bad Credit
Here are some steps you can take to get a bad credit loan:Step 1. Compare Lenders And Get Pre-Approved
To get the best loan terms, compare loan offers from multiple lenders. You can do so by getting pre-approved with a particular lender or by using an online loan aggregator site like Loans Canada. You can then compare offers side-by-side and choose the one that best suits your needs.Step 2. Apply For A Loan
Depending on the lender you work with, you may apply in person or online. To accurately assess your financial situation and verify your identity, lenders usually require certain documents for review, including a government ID, pay stubs, and bank account statements. Sometimes, you won’t require any physical documents as the whole verification process can be done via instant bank verification (IBV) services like Flinx, Plaid and Yodlee. You’ll be asked to sign into your bank account through a secure portal during your application process. This allows lenders to receive a read-only bank statement and have your bank account verified instantly.Step 3. Get Funded
If you’re approved, you may receive your funds within a few minutes to 24 hours via e-transfer or electronic bank transfer.Learn more: How To Apply For A Loan
Can I Get A Bad Credit Loan Online?
Yes, most lenders offer online loans in PEI. In fact, for many lenders, the first step is to fill out an online application. While some lenders require you to upload documents to verify your income and identity, others do not. Many use instant bank verification (IBV) to instantly verify your identity and income. With this, you simply enter your banking credentials into a secure platform to allow the lender to access a temporary copy of your bank statement. This allows lenders to quickly approve borrowers and fund them as quickly as the same day.
Where Can I Find A Bad Credit Loan Near Me In PEI?
If you live in PEI and have bad credit, there are several alternative lenders available that service bad credit borrowers in the province:
| Fairstone | – 201 Buchanan Dr. Unit #6, Charlottetown, PE, C1E 2E4 – 454 Granville St., Unit #11, Summerside, PE, C1N 4K7 Find a location near you with this Fairstone branch locator. |
| easyfinancial | – 9 Babineau Ave., Charlottetown, PEI, C1A 0C9 – 339 University Ave., Unit #5, Charlottetown, PEI, C1A 4M8 Find a location near you with this easyfinancial branch locator. |
| Money Mart | – 417 University Avenue, null, Charlottetown, PE C1A 4N7 Find a location near you with this Money Mart branch locator. |
Things You Can Do To Help You Qualify For A Loan With Bad Credit
Add Collateral
If your credit and finances aren’t great, you can lower your risk level by offering up your assets, such as your home, car, or other valuable property. This makes you less risky because the lender has the right to sell your asset if you default for too long.
Add A Cosigner
Another way of getting approved when your financial strength isn’t enough is to get someone to co-sign your application. However, they will need to be in good standing in terms of their credit and finances. Do note that if you default, the responsibility falls to your cosigner.
Get Get Pre-Approved
Many lenders offer pre-approvals or quotes with no credit checks or a soft credit check. By getting quotes, you can avoid lenders who offer too little or who say you’re not eligible. This can help you protect your credit score from unnecessary hard credit checks. You can also use a comparison website such as Loans Canada to get multiple offers with a single application. You can then compare offers and choose the one that best suits your needs.
Lower Your DTI
As mentioned, your debt levels in contrast to your income are one of the many factors lenders assess. Having a DTI of 32% or lower is ideal and can help improve your chances of qualifying for a loan.
Improving Your Credit For Better Approval Results
While this may be obvious, this isn’t always possible, especially if you need a loan right away. However, if you have a few months, consider improving your credit score before applying for a loan.
For example, if you have a bad credit score (300 – 559) and you get it to fair (560 -659), it can not only help you get approved, but it may also help you get a slightly better interest rate.
Here are a few ways to help you build your credit:
| Secured Credit Card | These cards almost guarantee approval. All you need to qualify is a security deposit, which is equal to your desired credit limit. Each responsible payment can help improve your payment history, which can build your credit score. |
| Lower Your Credit Utilization Ratio | A high utilization ratio can have a negative impact on certain credit scores. As such, it’s recommended not to use more than 30% of your available credit unless necessary. |
| Credit Building Programs | There are a number of programs to help you build your credit, including Koho’s credit-building program, Spring Financial’s Foundation program, and Chexy’s rent credit-building program. |
| Payment History | Your payment history is one of the most important factors when calculating your credit score. As such, it’s best to pay all your bills, including phone and utility bills. |
Is My Credit Score Bad? Follow This Simple Table As Your Guide
- Excellent (Scores 760+)
- Very Good (Scores 759 – 725)
- Good (Scores 724 – 660)
- Fair (Scored 659 – 560)
- Poor (Scores 559 – 300)
How To Check Your Credit Score
| Cost | Credit Score | Credit Report | ||
 | Free | Yes | Yes | Visit Site |
 | Free | Yes | Yes | Visit Site |
 | Free | Yes | Yes | - |
Things To Watch Out For When Applying For A Bad Credit Loan
Before you apply for a loan with a lender, be aware of the following:
Loan Scams
When it comes to money, it’s important to be vigilant and ensure you’re applying with a legitimate lender. With online lending, there are many scammers who try to prey on borrowers with bad credit because of their limited access to loans. Watch out for lenders who:
- Guarantee Loan Approval – To lure borrowers into signing a loan contract and divulging their personal details, some lenders may guarantee loan approval, regardless of your income or debt. No legitimate lender will offer loans without some sort of underwriting process. Avoid any lender that doesn’t vet their applicants.
- Upfront Fee Required – By law, lenders cannot demand upfront payments or fees for loans. Some may say it’s necessary for insurance purposes, but this is not a requirement. Never pay a lender upfront before signing a loan agreement and receiving your money.
Loan Cost
Before signing a loan, be sure to understand both the monthly and overall costs of the loan. Many lenders, particularly car lenders, will try and hide the true cost by focusing on the monthly cost. Review your contract thoroughly and ensure you’re aware of all costs, including prepayment penalties, missed payment charges and any other fees such as loan origination fees.
| Did You Know? PEI’s average non-mortgage debt per consumer reached $23,664 in Q4 2024 (Equifax). If you’re struggling with debt, consider consolidating your debt or speaking to a credit counsellor for debt relief options. |
Looking For Extra Financial Assistance? Check Out These Programs In PEI
Aside from applying for a bad credit loan to cover everyday expenses, there are also many programs available that are designed to help low-income residents in PEI. You can quickly and easily find these programs online at www.211.ca, including food banks, school lunch programs, free household items, and so forth.
Free Personal And Household Goods
The cost of just about everything has gone up, including clothing, household items, toiletries, and more. Fortunately, residents in PEI who are in need can receive items for themselves and their homes for free at the Summerside Free Store. All items are gently used and have been donated by generous members of the local community.
Summerside Free Store is located at 109 Water St., Summerside, PEI, C1N 1A8.
Children’s Clothing And Laundry Services
Parents and caregivers can get free clothing for their children between the ages of 0 to 6 years at the Families First Resource Centre. There is also a washing machine and dryer available for you to use for free. The centre services residents in the following communities:
- Cardigan
- Georgetown
- Montague
- Murray Harbour
- Murray River
- Wood Islands
- Vernon Bridge
- Surrounding areas
Families First Resource Centre is located at 4 Brooke St., Montague, PEI, C0A 1R0
Habitat For Humanity ReStore
ReStore is operated by the PEI Habitat for Humanity and sells a variety of gently used goods at a significant discount. Items include home decor, building supplies, and home renovation items.
All PEI residents are welcome to visit the ReStore at 167 Minna Jane Dr., Charlottetown, PEI, C1E 2L9.
School Food Program
It’s important to ensure that children have a nourishing lunch in the middle of the school day, but sadly, many kids in PEI do not get a proper meal due to their families’ financial situation. Fortunately, there are programs in the province that ensure that children in PEI are fed properly, including Bon Appetit, which is provided by the PEI School Food Program.
This program provides healthy lunches five days a week to PEI public school students, no matter what their ability to pay is. Kids pay what they can up to a maximum of $5.75 per meal.
Food Banks
Multiple food banks across PEI provide free food to needy residents. Simply visit pe.211.ca, type in your location, and a list of food banks will populate. Each food bank services residents within local community boundaries, so you may have to show ID before accessing food items.
Bad Credit Loans PEI FAQs
What kind of bad credit loans are available in PEI?
Are personal loans better than payday loans?
How does bad credit affect my loan applications?
®Fairstone Financial Inc. is a wholly owned subsidiary of Fairstone Bank of Canada.
*Interest rates are subject to change. Actual Annual Percentage Rate (APR) varies based on the province of residence and individual factors like credit details and loan amount. The interest rate on an unsecured personal loan is 31.99% in BC.
†On approved credit. Terms and conditions apply. Interest rates vary by province/territory and from customer to customer based on factors like credit score and borrowing history. See Fairstone’s website for details.
Fairstone Financial Inc. holds high-cost credit licenses in AB, MB (License #85047, expiring 20-02-2026) and QC; it has applied for a high-cost credit grantor license in NL. For license information by province, visit Fairstone.ca/HCCG
In Ontario, Fairstone Financial Inc. is licensed as mortgage brokerage 10821.
In Nova Scotia, Fairstone Financial Inc. is licensed as mortgage lender #2021-3000028.
easyfinancial Disclaimer:
Unsecured Personal Loans: Personal loan amounts range from $500-$20,000, with rates set between 29.99%-35.00% and determined based on the amount and term of the loan and our assessment of your personal loan profile credit. Amortization between 9-84 months. Different lending rules apply in Quebec and can be viewed at www.easyfinanciere.com . Different lending rules for high-cost credit products may apply in Manitoba, British Columbia, Newfoundland and Labrador. Brokerage #12935 (ON) X300681 (BC) #3000289 (NS). BC HCC #83689 Expiry Date - 10/31/25, MB HCC #62897 Expiry Date - 11/10 /25, AB HCC # 349265 Expiry Date - 01/31/2025, NL HCC # Expiry Date.
Secured Loans: Home equity loan amounts range from $15,000-$150,000, with rates set between 9.99% and 23.99%. Amortization between 72-240 months. The term of your loan will depend on the amount of your loan and our assessment of your credit profile. Additional fees, which vary by loan amount, apply and are subject to a 6 month loan interest penalty when paid within the first 36 months of the loan. Brokerage #12935 (ON) X300681 (BC) #3000289 (NS). BC HCC #83689 Expiry Date - 10/31/25, MB HCC #62897 Expiry Date - 11/10 /25, AB HCC # 349265 Expiry Date - 01/31/2025, NL HCC # Expiry Date.
