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Payday And Installment Loans

Payday and Installment Loans that Accept Child Tax Credit

If you want to use the Canada Child Benefit (CCB) to get a loan, you can receive a payday loan (also known as a cash advance) or an installment loan. Payday loans are more prevalent, and some of them take child tax, but they are also extremely expensive and should only be used as a last choice.

loans on disability incomeWhat should I know about child tax credit payday loans?

Lenders look at your salary to see if you can afford to pay back your loan. Because not all lenders accept child tax credit as a valid type of income, the first step in getting a payday loan using child tax credit is to identify a lender who does.

Payday loans, on the other hand, tend to have more lenient restrictions, hence many payday lenders in Canada accept child tax credit. Payday loans, on the other hand, contain exceptionally high-interest rates and should only be used as a last resort.

Also, while there are options for payday loans that accept the child tax credit, not all payday lenders are the same, and the payday loan industry as a whole is known for being predatory. It’s critical to find a lender who follows provincial payday loan legislation and thoroughly assesses your ability to repay the loan.

Payday loans that take child tax payments have certain characteristics.

  • Amount of the loan The average loan amount is between $100 and $1,500, however, some provinces, such as Ontario and British Columbia, limit the amount to a proportion of your salary.
  • Term of the loan Payment loans must be paid back by your next payday, which is usually one to four weeks away.
  • Fee for borrowing. Provinces with the highest borrowing fees. For every $100 borrowed, provinces such as Alberta, British Columbia, and Ontario have set a maximum of $15.
  • It’s fine if you have bad credit. Many payday lenders declare on their websites that they will consider those with terrible credit.
  • Non-employment earnings are acceptable. Non-employment income, such as government benefits (including the child tax credit) and private pensions, is accepted by many payday lenders.

Features of child tax credit installment loans

  • Rates of interest. Interest rates on child tax loans can range from 8% to 47% depending on your unique circumstances, such as your credit score.
  • Amounts of loans. The typical loan amount ranges from $500 to $10,000.
  • Conditions of the loan Term lengths typically range from 6 months to 5 years.
  • There are no consequences for paying in advance. You may be able to pay off your child tax debt early without incurring any costs, depending on the lender.
  • Both good and bad credit is welcomed. Whether you have good credit (above 660) or fair/bad credit, you can acquire an installment loan (below 660).

How to Apply for Child Tax Loans Online

  • Examine your credit report. Equifax and TransUnion are two companies that can provide you with your credit score.
  • Make a comparison of lenders. Compare three to four lenders’ interest rates, fees, payback terms, and eligibility restrictions for loans. To discover the best offer, evaluate a mix of bank loans, personal loans, and payday loans that accept child tax as income.
  • Check to see whether you’re eligible. Lenders frequently mention their qualifying requirements, which may include a minimum credit score and income. Before you apply, be sure you meet all of the requirements.
  • Apply sparingly. Your credit score drops every time a lender runs a credit check on your account. To prevent heavy pulls on your credit record, just apply for loans that you know you’ll be eligible for or apply to pre-qualify for online child tax loans.
  • Finish your application. Personal information such as your name, email address, Social Insurance Number (SIN), and birth date should be provided.

How to Get Approved for Child Tax Loans Online

  • Keep your credit score in the “good” range. Maintaining a credit score of 660 or above is the easiest method to get approved for online child tax loans and get reduced interest rates. You can still receive a payday loan or an installment loan if you have low credit.
  • Make sure you pay your payments on schedule. If you don’t make your payments on time, your credit score will drop quickly, affecting your ability to get child tax loans.
  • Look for a cosigner. If your credit score isn’t good enough, have a trusted friend or family member cosign your loan. This can assist you to avoid taking out high-interest loans like bad credit loans or payday loans by allowing you to use your child tax credit.
  • Make a financial plan. Make a monthly list of your debts, income, and expenses to convince your lender that you can afford your payments.
  • Apply to a number of different lenders. To ensure acceptance and obtain the best rates, shop around and apply for a variety of child tax credit loans online or through the bank.
  • Make a plan to pay off your other bills. If you have numerous outstanding obligations, consolidating your payments and paying down your debt before borrowing new money may be a good idea.

What is the Canada Child Benefit, and how does it work?

The Canada Child Benefit (CCB) is a tax-free payment given to families to assist with the costs of child care. The maximum benefit per year is roughly $6,833 for children under the age of six and $5,765 for children aged six to seventeen, however, the amount received by each family will vary depending on their annual income and the age of their children.

Families earning less than $30,000 per year are normally eligible for the maximum benefit for each child, but those earning more than $150,000 are not. The most important thing to remember if you want to be eligible for the CCB is that you must file your income tax return on time each year.

When I have the Canada Child Benefit, why would I need a loan?

The CCB is a little sum that may not be sufficient to meet all of your normal expenses. The maximum amount you could receive varies depending on where you live, your family’s net income, and other considerations because the amount you qualify for can be a combination of multiple sources of money, including provincial and territorial assistance.

For example, between July 2019 and June 2020, recipients in Ontario might receive up to $119.50 per month for each kid under the age of 18. During the same time period, recipients in Alberta may get up to $96.25 per month for the first child and up to $48.08 per month for the second, third, and fourth child. Remember that these are the maximum amounts; you may receive less.

And if unforeseen bills arise, such as medical treatments, auto repairs, or educational costs, you may require a little additional cash to get by.

The Bottom Line

At Lionsgate, we specialize in helping people obtain funding private mortgages for land purchases as well as for other real estate transactions. If you are looking to buy land in Canada, get a mortgage or apply for a loan, leave us a message and we will try to connect you with local realtors and sourcing for financing.

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