What types of loans are available to Ontario Child Benefit recipients?
You may be able to get a line of credit or personal loan from your bank if you have good credit. If you have poor credit, your main options are payday loans and installment loans from alternative lenders. This is the case whether you receive regular income or just ontario child tax income.
Baby bonus payday loans are the ones you need to watch out for when you’re looking to borrow money. Promising easy approvals and quick access to funds, payday loans look like a cheap and convenient solution when, in fact, they’re the most expensive form of credit. In Ontario, payday lenders can charge $15 for every $100 you borrow. This $15 fee may look like an interest rate of 15%, but it works out to an annual interest rate of 391% – that’s ten times more than what high-interest credit cards charge!
These risky loans also have short repayment periods. Lenders require you to pay back the loan in two to four weeks, a difficult thing to do if you’re waiting for your monthly child benefit to come in. If you don’t pay by the due date, you’ll be charged additional fees, which may cause you to take out another payday loan just to cover the first short-term financial help you need. The worst part of it all? Payday lenders are known to prey on vulnerable people, trapping them in a debt cycle that’s extremely hard to get out of.
Installment loans: A better solution
Installment loans are better than payday loans in every aspect, making them the best solution when you need a cash advance on your child benefit. Offered by reputable online lenders, this type of loan gives you peace of mind with lower interest rates, flexible repayment terms, predictable monthly payments, and lightning-fast access to cash. An installment loan can even improve your credit score if you make your payments on time (you definitely can’t do that with a payday loan).