Compare child tax loans in Alberta
Some lenders in Alberta accept the Canada child benefit (CCB) to help you qualify for a loan.
If you need a loan in Alberta using the child tax credit to qualify, you have options. Some online lenders of installment loans, cash advances and payday loans in Alberta accept the child tax credit as a valid source of income. Here’s a closer look at each type of loan and where you can apply to get the money you need.
- Personal loans (harder to get)
- Cash advances (easier to get)
- Payday loans (easier to get)
Compare child tax loans in Alberta
Explore personal loan providers that offer child benefit loans, many of which offer funding the same or next business day.
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Compare cash advances for child tax credit in Alberta
These cash advance providers in Alberta offer small instant loans that are easier to get than traditional personal loans. You pay no interest on these cash loans, but you may pay a monthly subscription fee.
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⚠️ Warning: Be cautious with payday loans
High-cost payday loans are unsustainable for borrowing over a continued period of time and are expensive as a means of longer-term borrowing. If you're experiencing financial hardship call Credit Counselling Canada for free financial counselling (Monday-Friday 8:00am-5:00pm at +1 866-398-5999). You may also want to consider payday loan alternatives. Maximum borrowing costs will vary by province. Review the maximum borrowing cost for your province before entering into a loan agreement.Compare child tax payday loans in Alberta
Some payday lenders in Alberta offer child tax loans with instant approval. These are extremely expensive, so only consider them as a last resort.
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Features of child tax payday loans in Alberta
- Loan maximum. Payday loans in Alberta max out at $1,500. If you’re a first-time borrower, you may be approved for less.
- Borrowing fee. $15 for every $100 borrowed.
- Loan terms. 42 - 62 days. Lenders must also allow you to repay the loan in at least two to three installments.
- Cooling-off period. If you want to cancel your payday loan, you have two days to do so and you don’t need to provide a reason.
- Extra charges. Your lender can charge an NSF of up to $25 if there isn’t enough money in your bank account when payment is due.
- No rollovers. You can’t can’t extend or renew an existing payday loan in Alberta.
Basic payday loan eligibility requirements
- Be at least 18 years old. Provide proof of age and identity with government-issued ID.
- Provide proof of income. This would include bank statements showing direct deposits for your child tax benefits.
- Have an active chequing account. Your lender will set up automatic withdrawals on your scheduled repayment due dates.
Features of child tax installment loans in Alberta
- Unsecured. You don’t need to provide collateral to get an installment loan.
- Repaid in installments. Once you receive a lump sum of cash, you’ll make equal payments in the required timeframe.
- Higher interest rates for bad credit. Because lenders are taking a bigger risk if you have bad credit, you’ll pay higher rates. Rates are typically between 18% - 47%.
- No prepayment penalties. You can pay off this entire loan or make extra payments any time without fees.
Basic installment loan eligibility requirements
- Be at least 18 years old. You’ll need to show your government ID to verify your age and identity.
- Have proof of a steady source of income (child tax benefits included). You’ll usually need to show bank statements to prove that you can pay back your loan on time.
- Have a working bank account. You’ll have to submit your bank account details to organize payment (and ensure repayment of your loan).
- Submit to a credit check. Unlike payday loans, which sometimes don’t require a credit check, you’ll usually need to prove that you have a decent credit score to qualify for an installment loan. Keep in mind, some lenders provide installment loans specifically for bad credit.
Features of cash advances in Alberta that accept child tax credit
- Small loan amounts. Borrow up to $350.
- Varying loan terms. Some lenders let you extend the payment due date, while others may require you to repay by your next payday.
- Bank account required. You’ll need an active bank account so lenders can verify your identity and income.
- App available. Lenders have a iOS, Android and/or web apps available for easy online applications and funding.
- Instant 24/7 loans. Like payday loans, it’s possible to get instant approval and e-Transfer funding any time.
- Easy eligibility requirements. Lenders can accept any recurring income paid into your bank account and they don’t do credit checks.
What to consider before you apply for child tax loans in Alberta
- Check your budget first. Before committing to more debt, do some number crunching to make sure you have the leeway in your monthly budget to make loan repayments. Payday loans must be repaid within 42 - 62 days while installment loans could keep you in debt for months or years.
- Ask for a fee breakdown. Don’t rush into signing up for a loan. Instead, take stock of the true cost of borrowing, including the interest you’re being charged, origination fees and other costs of installment loans. If you want the option to repay some or all of your loan early, check that the lender you’re working with won’t charge prepayment penalties. If you get a payday loan, the lender cannot charge you any origination fees or prepayment penalties.
- Improve your credit score. If time is on your side, try your best to improve your credit score so you can secure a lower interest rate if you’re applying for an installment loan. This will save you money on interest over the lifetime of your loan.
- Get up to speed on provincial regulations. If you’re getting a payday loan, become familiar with the rules for payday loans in Alberta. This way, you’ll know whether a lender is trying to scam you with excessive fees or other illegal practices.
- Be aware of scams. Be wary of providing your personal and financial details when searching for online child tax loans in Alberta. Become familiar with personal loan scams and payday loan scams.
How to apply for online loans using child tax credit
If you’re ready to apply for a loan using your child tax benefits as income, follow these steps:
- Apply online. Head to the lender’s website to complete the application process. Whether you’re applying for an installment loan, cash advance or payday loan, the process shouldn’t take more than 10 minutes.
- Get a decision. In most cases, you should hear back within minutes of submitting an application.
- Verify your information. If needed, submit any documents your lender may require, such as government-issued photo ID and bank statements.
- Receive your contract. Review the terms of your loan. If you’re happy with the contract, sign on the dotted line and gain access to your funds via direct deposit or e-Transfer.
Instant bank verification
During the application process for child tax loans in Alberta, your lender may prompt you to log onto your online bank account via a pop-up screen on the application page. You can select your bank from a range of options, then log in. This is called instant bank verification and it helps lenders validate that your bank account is open, in good standing and has the recurring income to keep up with loan repayments.
It also saves you a step. You don’t have to input your account number, branch number or routing details.
How will I get my loan funds?
If you apply online for child tax loans, you can get your money via e-Transfer or direct deposit. E-Transfer is the faster option, and you can get an email money transfer within minutes after you submit your signed contract. If you opt for direct deposit, it’ll take one or two business days for the money to be deposited into your account.
Bottom line
Between payday loans, cash advances and installment loans, Albertans have options for using their child tax benefits as income to qualify for a loan. Your job is to decipher whether adding debt to your budget is a wise choice. If you decide that it is, make sure you compare lenders, their interest rates, terms and eligibility requirements. And bear in mind that payday loans should be used as a last resort option. Consider alternatives to a payday loan before applying for one.
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