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Compare child tax loans in Alberta
Some lenders 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. Online lenders of installment loans 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.
Types of child tax loans in Alberta you can apply for
To apply for child tax loans in Alberta, you’ll need to show lenders you have a stable source of income. Here are your loan options:
- Payday loans. You can apply for payday loans using your child tax credit. Payday loans in Alberta cap out at $1,500, with loan repayment terms of 42 to 62 days. Bear in mind, payday loans are expensive because they’re easy to get, with lenient eligibility requirements. In Alberta, they’ll cost you $15 for every $100 you borrow. Browse payday loans.
- Installment loans. Installment loans provide you with a lump sum of cash that you pay back over a longer timeframe to the tune of 6 to 60 months. Like payday loans, they’re easier to qualify for compared to personal loans from banks and credit unions. You can usually apply for more than the $1,500, too. Browse installment loans.
⚠️ Warning: Be cautious with payday loansPayday loans are expensive. 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). Consider alternatives instead of a payday loan:
- Local resources. Government programs and nonprofits offer free financial services and help with food, utilities and rent.
- Debt relief companies. There are services to help you reduce your debt payments.
- Payment extensions. Talk with bill providers about longer payment plans or due-date extensions.
- Side jobs. Sell unwanted items online, sign up for food delivery and more.
Compare payday loans in Alberta that accept child tax credit
Maximum borrowing costs per provinceAlways refer to your contract for exact repayment amounts and costs as they may vary from our results.
|Province||Maximum allowable cost of borrowing|
|Alberta, British Columbia, New Brunswick, Ontario & Prince Edward Island||$15 per $100 borrowed|
|Manitoba & Saskatchewan||$17 per $100 borrowed|
|Nova Scotia||$19 per $100 borrowed|
|Newfoundland and Labrador||$21 per $100 borrowed|
|Northwest Territories, Nunavut & the Yukon||$60 per $100 borrowed|
|Quebec||Limit of 35% annual interest rate (AIR)|
Features of child tax payday loans in Alberta
Each province has its own set of rules payday lenders must abide by. If you decide to apply for a payday loan in Alberta using your child tax benefits as income, here’s what to be aware of:
- 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. Lenders can only charge you up to $15 for every $100 borrowed.
- Loan terms. In Alberta, loan repayment terms range from 42 to 62 days. Also, unlike other provinces, lenders must allow you to repay the loan in at least 2 to 3 installments, depending on when you receive your child tax benefit.
- Cooling-off period. If you change your mind and want to cancel your payday loan, you have 2 days to do so. You don’t need to provide a reason for cancelling.
- Extra charges. Your lender is allowed to charge you a maximum NSF fee of $25 if there isn’t enough money in your bank account when payment is due.
- No rollovers. You can’t take out multiple payday loans and you can’t extend or renew an existing payday loan in Alberta.
Basic eligibility requirements
To apply for a payday loan in Alberta, you’ll need to meet the following requirements as a baseline:
- 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.
Compare child tax installment loans in Alberta
Features of child tax installment loans in Alberta
Installment loans in Alberta share these key features borrowers should be aware of:
- 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. Because lenders are taking a bigger risk without any collateral on the line, you’ll pay higher rates – especially if your credit isn’t in great shape. Rates are typically between 18% and 47%.
- Smaller loan amounts. Borrowers typically qualify for smaller amounts with installment loans compared to conventional personal loans. The maximum amount you could qualify for depends on your personal factors.
- Lenient eligibility criteria. It’s easier to qualify for an installment loan compared to personal loans from banks or credit unions.
Basic eligibility requirements
While eligibility criteria will vary from lender to lender, you’ll need to meet these requirements to apply for an installment loan in Alberta:
- Be at least 18 years old. You’ll need to show your government ID to verify your age and identity.
- Be a Canadian citizen or resident. You may have to prove your citizenship or residency with a Canadian passport or other form of identification. You’ll also need proof of address via utility bills or other official documents that include your full name and mailing address.
- 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.
What to consider before you apply for child tax loans
While you may need the cash, keep these tips in mind if you’re deciding whether to proceed with a child tax loan:
- 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 to 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 child tax loans in Alberta
If you’re ready to apply for a loan using your child tax benefits as income, follow these steps:
- Choose the type of loan. Decide on whether you’d like to apply for a payday loan or installment loan, bearing in mind the key features of each and how they’ll suit your needs.
- Shop around. Compare lenders, interest rates, fees, repayment terms and eligibility requirements. Zero in only on lenders that will accept child tax benefits as income.
- Apply online. When you’ve picked the best option from your shortlist, head to the lender’s website to complete the application process. Whether you’re applying for an installment loan or payday loan, the process shouldn’t take more than 10 minutes or so.
- Wait for pre-approval. Online lenders are usually fast and can give you instant pre-approval.
- Verify your information. Before your lender issues your loan, you must verify your identity and income. Make sure you have all of the required information on hand.
- Sign 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.
What is instant bank verification?
During the application process, 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 money?
If you apply for child tax loans in Alberta online, 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 1 or 2 business days for the money to be deposited into your account.
Between payday loans 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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