Loans

How to Get Approved for a Loan With Your Child Tax Credit Benefit (AKA Baby Bonus)

Jessica Steer

Reviewed By: • Stephen Hoenig

Did you know that you can use your child tax benefit (aka Canada Child Benefit or CCB or CCTB) as an additional source of income to qualify for a personal instalment loan? Here’s a quick breakdown of how to get a fast online cash advance with the child tax credit as an additional income source — without having to resort to the sky-high interest rates of payday loans.

The CCB (Canada Child Benefit) is a tax-free cash benefit provided by the Canadian government that offers financial assistance for parents every single month. The benefit is based on income, the age and number of children, and disability (if applicable). The funds get deposited straight into the recipient’s bank account every month. But what if something unexpected happens before your child benefit is due to arrive? Whether you are a single-parent family in British Columbia or nuclear family in Ontario (or anywhere in-between), a cash advance loan can provide breathing room when sudden expenses put a strain on your finances. Online loans for child tax are common in Canada; you just need to know where to look. Here’s how you can get a fast cash advance using the child tax credit as a source of income, and how to do it without predatory payday lenders.

Can I get a cash advance on the child tax credit?

Many lenders will qualify your child tax benefit as income, but 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 instalment 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.

Ready to apply?

Get approved with Spring Financial today (it only takes 3 minutes) and get a cash loan online — e-transferred to your bank account in hours, not days. See what other customers are saying about Spring.

A better alternative to baby bonus 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 instalment loans
CCTB payday loans

Some people apply for payday loans using their child tax benefit. The baby bonus payday loan is an extremely short-term loan based on the amount of your child tax credit. However, 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! As you can see in the infographic below, the cost of borrowing with a payday loan compared to other forms of credit simply isn’t worth it:

Chart comparing borrowing costs of baby bonus payday loans compared with other common loan types.

Original Photo Credit: Financial Consumer Agency of Canada— Interest rate comparison on a $300 payday loan for 14 days. If you’ve never got a payday loan but are considering it now, don’t even think about it! Your first payday loan can begin a vicious repayment/borrowing cycle that is very difficult to break if you miss a payment. In the past, people who needed quick cash advances had no choice but to visit a payday lender. Luckily, there are far better (and safer) alternatives when you need a loan on your baby bonus. Online instalment loans are preferable due to longer repayment timelines, lower interest rates, and fixed repayment amounts that you get to decide!

Where to apply for a cash advance on my child tax credit

When you need fast cash, a baby bonus personal loan is always the smarter choice compared with a payday loan. And getting a personal loan with Spring Financial is quick, easy, and stress-free:

All credit scores welcome: Whether you’re new to credit or have filed for bankruptcy, Spring Financial approves loans for every credit rating.
Loans up to $10,000: Choose how much money you’d like to borrow and get approved for any amount between $500 to $10,000!
Simple application process: Apply online in minutes. Our loan application is open 24/7! You can also speak to a live representative by phone or text message.
Incredibly fast approvals & transfers: Funds are e-transferred into your bank account usually within 24 hours of applying.
Customizable repayment schedule: With Spring Financial, you decide how much to pay back every month. You can spread your payments out over 60 months if you want!
Full transparency: No application fees, maintenance charges, and hidden costs ever.
No appointment required: Online applications mean you’ll never have to wait in line at a bank or payday loan shop.
Safe & secure: State-of-the-art security technology means your data is under lock and key.
Canadian: Spring Financial is based in Vancouver and serves people across the country.

Apply for your child tax loan today to find out how we can assist you!

FAQ about child tax loans

Here are the answers to some frequently asked questions about child tax loans and Spring Financial.

How long does it take to get approved for my child tax loan?

In most cases, you can get approved and see funds e-transferred straight into your bank account in less than 24 hours. Since Spring Financial is a direct lender without a middleman, the loan process is much quicker than if you apply with traditional lenders.

Can I get approved if I have bad credit?

If you have bad credit, it doesn’t mean you’ll get declined for financing with Spring Financial. We work hard to help people—facing a wide range of credit situations—get the funding they need.

What if I get declined for a child tax loan?

We work hard to boost your chances of approval and we pride ourselves on getting a high percentage of low-income, credit-challenged customers the loans they need. Unfortunately, some applicants with very low credit scores don’t get approved right away, but we don’t give up! You can rebuild credit with a secured credit builder program or secured credit card! Contact us to learn more about our credit building solutions today. Our consultants are waiting to discuss your options!

Can a loan from Spring Financial help me rebuild credit?

Yes! Spring Financial reports loan repayments to Canada’s two main credit bureaus, Equifax and TransUnion, so you’ll see your credit score increase if you make all your payments on time. You cannot build credit with a payday loan.

What can I use my CCB child tax loan for?

How you use your child tax loan is up to you. Here are a few of the ways you can put your loan to good use.

1. Schooling and education

It’s no secret that from preschool to university, schooling is expensive. Textbooks, team activities, new clothes, and stationery are just some of the expenses a loan could help cover. Likewise, if your child needs extra help in a subject, a loan could be put towards extra lessons or tutoring.

2. Extracurricular activities

Whether your child plays little league or is in their school’s drama club, there are going to be costs that even the best bake sales can’t cover. Equipment, uniforms, supplies, registration fees, and trips to tournaments and competitions are just some of the expenses that may crop up. In fact, a 2018 Ipsos survey for Global News found that families spend an average of $1,160 annually on their children’s extracurricular activities.

3. Childcare & family breaks

Childcare is a necessity for any parent and a child tax loan can help cover the cost of regular daycare, nannies, and babysitters. Parents need a break for their activities too, so consider having a babysitter on speed dial and keeping some of the loan set aside for kid-free time. Alternatively, put the money aside for vacation so your whole family can recharge and spend time together.

4. Dental care

While medical expenses are generally covered in Canada, most Canadians rely on a benefit plan to cover dental expenses. If you don’t have a comprehensive plan, dental procedures can quickly drain your account. Plus, if you find your budget suddenly blown when your son chips his front tooth and requires a crown, a personal loan from Spring Financial can get you the money you need right away.

5. Unplanned costs

Even the best-laid plans can go awry (see the aforementioned surprise visit to the dentist). You might find that your roof needs repairs after a windstorm or that one day your dryer tumbles its final load, and that’s where a child tax loan can help out.

6. Day-to-day essentials

If you’re struggling to keep up with car payments, grocery bills, utilities, rent and other essential costs, you’re not alone. Many Canadian parents, whether they are raising a child alone, find themselves or their partner out of work, or have a large family, need extra financial support. Spring Financial understands this and can help you with a child tax loan whenever you need it.

What are loan repayment terms like?

Unlike short payday loan cycles or loans with prepayment penalties, Spring Financial offers flexible repayment plans so you can choose a term that works for your budget and schedule. Pay off your loan amount as early as you like, or take up to five years, the choice is yours.

Is Spring Financial safe?

Headquartered in Vancouver, Spring Financial is a trusted lender that uses state-of-the-art security technology to keep your sensitive data under lock and key. Live representatives are also ready to assist you 24/7 over telephone, text, and e-mail.

Apply for your child tax loan today

About the author

Jessica Steer

Jessica Steer is a Financial Content Writer at Spring Financial. She has years of personal finance experience, particularly with personal loans and credit-building solutions. Along with this, she has written hundreds of financial articles featured in several online publications.