As of July 20th, 2016, the Canada Child Tax Benefit (C.C.T.B.), was officially renamed the “Canada Child Benefit” (CCB). This change included some notable adjustments which leads to questions about a variety of different types of loans and the application processes that come with them.
One question that we frequently get is: “Will I qualify for a payday loan if I’m currently receiving the Canada.ca Child Benefit?” While the answer to this question varies from lender to lender, here’s how you can use your Canada Child Benefit income to qualify for a loan:
The Canada Child Benefit is a government program that provides families and single parents with financial assistance. It is a tax-free payment that families or single parents can apply for when they have a child or children who are currently under the age of 18.
Though any loan you take out is typically dependent on your income, employment and credit history, you may be able to use your CCB as leverage to get a loan. Since your CCB is considered as part of your income, you can use it as a means to qualify for a loan. However, to get approved for a loan while on CCB, you’ll need to find a lender that accepts child tax credit as a form of income.
Personal loans (a.k.a. installment loans) have lower interest rates and longer repayment periods than a payday loan, so it tends to be cheaper and more manageable to pay off. When you get a personal loan, you’ll receive a lump sum of cash that you’ll have to repay with interest in equal installments over a period of time. :
When you apply for a personal loan that accepts child tax as a source of income, you’ll be able to qualify for a larger amount than with a payday lender. These amounts can easily range between $100 to $1,500.
Interest rates on child tax loans are also lower than payday loans, making them a better option. The most a lender can legally charge you in Canada is 60% APR.
One of the main reasons a personal loan is more affordable, is because it has loan terms than can extend to 5 years or more.
Depending on the lender you apply with, requirements may vary. For example, while one lender may require a good credit score, another may not. Similarly, while one lender may require you to be employed, another may simply require a stable source of income.
Taking out a payday loan that accepts child tax a.k.a. “baby bonus payday loan” is becoming increasingly popular amongst cash-strapped parents. CCB payday loans are easy to get but should only be taken out in emergencies or in small amounts as interest is accrued immediately.
You can only borrow up to $100 to $1,500 with payday lenders. However, that amount shrinks further as some provinces limit the amount you can borrow up to 50% of your net income.
– Another aspect to consider when getting a payday loan is the loan term. Payday loans have extremely short terms, most varying between 15 and 30 days.
– Most new payday lenders require proof of income, a valid bank account, and proof of identity to qualify. Most lenders also do not require a credit check, which makes it a good option for those with bad credit.
For your personal loan, while qualifying for the CCB, contact Mega Cash Bucks today for your simple online loan details.