carloanscanada.com uses cookies to enhance your browsing experience. Learn more about how we use cookies.

ACCEPT COOKIES
Resources
GET STARTED
The Effect of EI on Your Car Loan
8 May

The Effect of EI on Your Car Loan

Posted by: 
Car Loans Canada

It’s amazing how much can change in just a month. Everyone here at Car Loans Canada wishes you and your family all the best during this difficult time and hope that you’re taking the recommended precautions to avoid exposure to COVID-19. Nothing is more precious than your health, and we hope that you continue to enjoy it through this pandemic and beyond.

If you’re on EI right now, you’ve got a lot of company. Millions of Canadians have suddenly found themselves dependent on it due to the economic impact of COVID-19. In uncertain times like these, you’re bound to have many questions. Although it should by no means be at the top of your list, it’s important to consider how going on EI may affect your car loan. This is particularly important if you’re interested in applying for one while interest rates are low.

“What effect will EI have on my credit score?”

undefined

Being on EI in and of itself will have virtually no effect on your credit score. Credit reports (the basis for your score) don’t contain any information about employment status, work history, or personal income. There’s also nothing on them to indicate if you’ve even applied for EI. This is because, generally speaking, lenders don’t care where your money comes from so long as it’s going towards your bills.

“How will it impact my car loan application?”

undefined

Because it still represents a form of income, EI is not as much of a problem here as the period of unemployment. Potential lenders will always want to see your employment history, but this may prove problematic for you during the COVID 19 pandemic as there is no consensus on when social distancing will end and the economy can restart. There isn’t even a guarantee that there will still be jobs waiting for people, as many economists are now predicting a recession in the wake of the pandemic. All these factors are more likely to affect your credit score than EI itself.

“Will a loan affect my EI benefits?”

undefined

If you’re worried that qualifying for a car loan will somehow affect your EI benefits, we have more good news for you. Because the government does not recognize your loan as income it won't have any impact on the money you receive through EI.

We’re Here For You

Hopefully we’ve given you some good news or at least relevant some anxieties if you’re currently on EI. No matter how long this lasts, Car Loans Canada will continue working for you. Stay tuned to our blog for more coverage on the effect of the pandemic on our industry. We wish you and yours good health in the meantime.

Tags:
  
Automotive    Finance    Car Loans
Share:

Search

Categories

    Ad goes here

    Subscribe

    Sign up to our newsletter to get the latest news and offers.

    cannot load

    Popular Tags

    Automotive

    Car

    Bad Credit

    Get Approved

    Used Cars

    Auto Loan

    Dealership

    Credit

    Interest Rates

    info@carloanscanada.com+1 888 536-4210

    Quick Links

    Apply NowInsuranceCredit ScoreCredit RefreshAuto Loans

    Subscribe To Our Newsletter

    cannot load

    © 2019Car Loans CanadaAll rights reserved

    APPLY NOW



    Top