Loans That Accept Child Tax Income

In Canada, there are many lenders that only require steady income, which doesn’t have to be employment income. However, a quick check on the internet reveals that most child tax credit loans are offered by payday lenders. With their exorbitant interest rates and unrealistic repayment timelines, there are safer options than payday lenders when you need fast cash.

Today, reputable online lenders are starting to emerge with the technology to deliver fast funds to your account within 24 hours. Spring Financial can deliver a quick cash advance in the form of a personal installment loan. Get up to $10,000 deposited in your bank account as soon as today.

When you apply for a cash advance loan with Spring, we leverage financial technology for a more holistic look at your financial situation. It means we review other factors besides your credit score—such as net income. We include the Canada Child Benefit (CCB) as part of your overall income calculation to help you get approved for the cash you need.

Alternatives to Payday Loans

Mainly, there are two kinds of loans that qualify child benefits as income and can deliver instant cash when you need it: 

• CCTB installment loans
• CCTB payday loans

Some people apply for child tax payday loans. The baby bonus payday loan is an extremely short-term loan based on the amount of your child’s tax credit. However, personal or online payday loans, due to their inherently high APR and quick repayment timeline, are predatory in nature.

With regard to interest rates, the total cost of borrowing for a payday loan can be as high as 650% in some provinces! This is why it’s recommended to get cash advances with installment loans. 

When it comes to getting a CCTB installment loan, there are two different types to choose from. You can get unsecured loans or secured loans. 

Unsecured Loan

Unsecured loans, also known as cash loans, are given to you by lenders under the assumption you will pay the money back. Whether you have good credit or bad credit will determine the interest rate that comes with your unsecured loan. That said, generally, the better your credit score, the lower your interest rate will be. Many online lenders who accept child tax benefit payments, offer child tax cash loans.. 

Secured Loan 

Secured loans are installment loans that require collateral. If you have bad credit, then these are the easiest types of loans to get with lenders that accept child tax benefit income. They will also have lower interest rates than unsecured loans because the lender can seize your assets if you’re unable to make your loan payments. 

The most common types of secured loans are auto loans and home equity loans. However, secured credit cards are also really popular for those looking to increase their credit score. With secured credit cards, though, your deposit isn’t returned until you’ve paid off the credit card and cancelled it. 

How to Apply for Online Child Tax Loans

Applying for a loan using your child tax as income is similar to applying for a regular loan. The first that you want to do is find a lender that will accept your child tax as part of your income. Surprisingly, this is simpler than you may think. 

While it can be more difficult to get these types of loans with banks and credit unions, alternative lenders and online lenders, such as Spring Financial, will give you a loan. Before you apply, though, it’s important to remember that while your income will be considered, there will be no guarantee that you’ll get approved. 

Once you’ve decided on a lender, the next step is to submit your loan application. With most lenders, you can apply online and complete the entire process from your home. Once the application is completed, you’ll have to submit the required documents. 

Documents Required for a Child Tax Loan

Just like with any other type of loan, lenders want to be sure that you can afford your monthly payments. In order to do this, they request some documents from you to back up what you’ve included in your application. Because you also have to have a valid bank account in order to get a loan, you’ll need to provide documents proving this. Essentially, you’ll be providing the lender with some personal and financial information. 

The main documents that most lenders request are:

• Pay stubs (proof of payment)
• Letter of employment (Letter of acceptance)
• 90 days of bank statements
• Pre-authorized debit form
• Government-issued ID (not provincial health card)
• Proof of address

With many of the online lenders, you can upload these documents directly, and they can be looked over right away. Many lenders also offer secure programs that allow you to securely log into your online banking, which will automatically load your information. 

Factors Lenders Look At For Approval

While your monthly income and documents are required to complete the approval process, lenders want to look at more than just that. Once you’ve gotten a pre-approval, the lender will then want to run a hard credit check. To do this, you will need to consent. 

A hard credit check shows the lender an in-depth look at your full credit report and credit history. It will also give the lender an accurate credit score. While your credit score is an important factor when it comes to your approval, lenders also consider your credit history, debt-to-income ratio, and why your credit score is the way it is.

Different Types of Canada Child Tax That Are Considered Income

In Canada, there’s the federal Canada child benefit that’s administered by the Canada Revenue Agency and known as Canada Child Benefits. These benefits are intended to provide financial assistance to and help with the costs of raising children, while providing families financial stability. 

 However, this isn’t the only child tax credit that Canadian parents can get. There are also provincial child tax credits that will provide income to parents who need it. With these benefits, you’re still able to qualify for Canada tax benefit loans.

British Columbia

In BC, you can get the bc family benefit which is a tax free monthly payment. You don’t need to apply for this credit but you do need to already be receiving the CCB in order to qualify. In order to receive full benefits, your annual net income must be under $27,354. On top of this benefit, there’s also the BC early childhood tax benefit. This benefit gives an extra $55 to parents with children under the age of 6. 

Alberta

In Alberta, the provincial child tax is the Alberta Child and Family Benefit. This is provided to lower and middle-class Canadian families with children under the age of 18. Just like other provincial credits, you must be approved for the CCB before you can qualify for the Alberta child benefit. 

Saskatchewan

Saskatchewan doesn’t specifically have a child tax credit, but they do have the SLITC Saskatchewan Low Income Tax Credit. This credit provides those who qualify with income based on how many are in their family. This is often also considered as income for personal loans, just like the child tax credit. 

Manitoba

Manitoba child benefit offers a small amount to eligible families. With this credit, you can receive up to $420 annually per child. However, in order to qualify for full benefits, your annual income must be lower than $15,000.

Ontario

In Ontario, if you have a low to moderate income, you could receive up to $1,607 annually in Ontario child benefits. However, you do have to meet the annual income requirements in order to qualify. Depending on your income, you may be eligible for partial amounts, though. 

Nova Scotia

In Nova Scotia, depending on your annual income, you could receive up to $1,525 annually for each child as the Nova Scotia child benefit. That said, this is only if your annual income is $25,000 or lower. You can still qualify if your annual income is below $34,000. However, you’ll receive a reduced amount. 

New Brunswick

In New Brunswick, if you qualify, you could receive a non-taxable monthly payment for children under the age of 18, which is considered the New Brunswick child tax benefit. The amount that you receive with this benefit is based on how much your annual income is and how many children you have. 

Newfoundland and Labrador

In Newfoundland and Labrador, they offer the Mother Baby Nutrition Supplement as the Newfoundland and Labrador child benefit. This is a monthly payment available to families who are low to moderate income and have children under the age of 1. It’s $100 per month, and you can receive a $100 birth benefit in the month your child is born. 

Quebec

In Quebec, there’s the Family Assistance Payment. You don’t have to apply for this benefit; it will automatically start to be administered once the child’s birth has been declared. That said, how much you receive is based on your annual income and the number of children in the household under the age of 18. 

Northwest Territories

The Northwest Territories child benefit is a non-taxable benefit that you can receive if you have children under 18 and an annual income under $30,000. The amount you receive is based on your income and how many children you have, as well as their ages. These government benefits can help with the costs related to raising children. 

Nunavut

In Nunavut, there are also government subsidies. If you have children under the age of 18, you can get the Nunavut child benefit. Those with an income below $22,065 can receive full benefits, while those with a higher income may get partial benefits. 

Child Disability Benefit

The child disability benefit is given by the Canadian government to Canadian families who care for a child or children under the age of 18 who have a physical or mental disability. In order to receive this money, you have to receive Canada Child Benefits, and your child has to qualify for the disability tax credit.