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Loans that accept child tax credit

Apply online for installment loans or payday loans using child tax credit.

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Need a payday loan?

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  • Get up to 20% in cashback
  • Accepts Child Tax Benefit
  • APR & loan term vary by province
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If you’re looking to take out a loan online using the Canada Child Benefit (CCB), you can get a payday loan (sometimes called a cash advance) or installment loan. Payday loans are more common, and there are some payday loans that accept child tax, but they are also very expensive and should be a last resort.

Use this guide to see your options for online child tax loans.

⚠️ Warning: Be cautious with payday loans
Payday 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 that accept child tax

Name Product Loan Amount Loan Term Interest Rate Turnaround Time Serviced Provinces
Money Mart Payday Loan
$120 - $1,500
1 - 62 days
Varies by province
As little as 1 hour after getting approved
AB, BC, MB, NS, ON, SK
To be eligible, you’ll need to be at least 18 years of age with a steady source of income and a chequing account. No credit check required.
iCASH Payday Loan
$100 - $1,500
7 - 62 days
Varies by province
As little as 2 minutes with INTERAC e-Transfer
AB, BC, MB, NB, NS, ON, PEI
Get up to 20% in cash back once your payday loan is fully repaid. Conditions apply.

To be eligible, you'll need to be at least 19 years of age and have a net income of at least $800/month deposited into your bank account.
Cash Money Payday Loan
$100 - $1,500
5 - 40 days
Varies by province
As little as 15 minutes with INTERAC e-Transfer
BC, NL, NS, ON, SK
Apply for your first $300 payday loan at a $20 cost (excludes SK applicants).

You'll need to be 18 years of age or older and have a net income of at least $1,000/month. Residents of MB and NB must apply in-store for a loan.
GoDay Payday Loan
$100 - $1,500
Up to 62 days
Varies by province
As little as 2 minutes with INTERAC e-Transfer
AB, BC, MB, NB, NS, ON, PEI, SK
To apply, you'll need to be a Canadian resident over the age of 18 with a valid email address, phone number and an open bank account with a Canadian bank or credit union.
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Maximum borrowing costs per province
Always 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)

What should I know about payday loans using child tax credit?

Lenders use your income to determine whether you can afford to repay a loan. Not all lenders recognize child tax credit as a valid form of income, so if you’re looking for payday loans using child tax credit, your first step is to find a lender that accepts this income.

Fortunately, payday loans have lenient eligibility requirements, so there are payday lenders in Canada that accept child tax credit. But keep in mind that payday loans have very high interest rates and short repayment terms. The payday loan space is also known to be predatory, so it’s important to choose a lender that abides by provincial regulations and properly evaluates your ability to repay the loan.

Features of payday loans that accept child tax

  • Loan amount. Loan amounts are typically between $100 to $1,500, but some provinces limit the amount to a percentage of your income (50% in Ontario, BC, Saskatchewan and Newfoundland and 30% in Manitoba and New Brunswick).
  • Loan term. The maximum loan term is 62 days across Canada. Payday loans in Alberta must have a minimum loan term of 42 days, which is not a law for the other provinces or territories.
  • Repayment. Payday loans are typically repaid in 1 payment, but it also depends on provincial regulations. In Alberta, for example, you repay your payday loan in installments.
  • Borrowing fee. Depending on where you live, you’ll pay between $15 and $25 for every $100 borrowed.
  • Bad credit is okay. Payday lenders will shift their focus on your income instead.
  • Non-employment income is okay. Many payday lenders accept non-employment income such as government benefits (including child tax credit) and private pensions.

How to compare payday loans that accept child tax

With many choices online, which lender do you pick? Consider the following:

  • Funding options offered. If you apply online, you can get a payday loan via e-transfer or direct deposit.
  • Turnaround time. While payday loans are generally fast, lenders differ in their turnaround times. Some give instant approval 24/7, while others can take a few hours or 1 business day.
  • Accepts child tax credit. Payday lenders have flexible requirements, but not all accept child tax credit.
  • Licensed and follows provincial regulations. Each province has its own rules about payday loans, such as maximum borrowing fees, late payment fees, cancellation period, rollovers and more. Choose a licensed lender that abides by all of them.

Do I qualify for a child tax payday loan?

Basic requirements for a payday loan include the following:

  • Be the age of majority in your province or territory (18 or 19)
  • Be a Canadian resident
  • Have a recurring income
  • Have an active bank account

Compare payday loans

Compare installment loans that accept child tax

Here are lenders that accept child tax credit as a form of income.

Name Product Interest Rate Loan Amount Loan Term Requirements Link
Money Mart Installment Loan
OFFER
Money Mart Installment Loan
29.90% - 46.90%
$1,000 - $15,000
12 - 60 months
Requirements: min. credit score 300
Go to site
More Info
Get a $100 eGift card when you apply online, connect your bank account using Express and make your first payment.
LoanConnect Installment Loan
LoanConnect Installment Loan
32.00%
$500 - $2,500
3 - 6 months
Requirements: current debt must total less than 60% of income, min. credit score 300
Go to site
More Info
Get approved by different lenders in as little as 60 seconds with any credit score.
Loans Canada Installment Loan
Loans Canada Installment Loan
8.00% to 46.96%
$500 - $50,000
3 - 60 months
Requirements: min. credit score 300
Go to site
More Info
A broker with the largest lender network in Canada. Fill out one application and get matched for free with lenders.
Cash Money Installment Loan
Cash Money Installment Loan
46.93%
$500 - $10,000
6 - 60 months
Requirements: stable source of income, min. credit score 560
Go to site
More Info
Online installment loans are available in Alberta only. Residents of Manitoba and New Brunswick must apply in-store.
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Features of installment loans that accept child tax

  • Interest rates. Interest rates for online child tax loans range typically between 18% and 47% based on your personal factors.
  • Loan amounts. Loan amounts are usually issued in the $500 to $10,000 range.
  • Loan terms. Term lengths often last between 6 months and 5 years.
  • Bad credit is okay. It’s possible to get an installment loan if you have fair/bad credit (below 660).

How to compare installment loans that accept child tax credit

  • Annual percentage rates (APRs). The APR is the interest rate and other fees to finance your loan expressed as a yearly cost. It gives you a truer view of the cost of a loan.
  • Prepayment penalties. Many installment loan lenders don’t charge fees for paying off a loan early, so be sure to check for this.
  • Accepts child tax credit. Installment loans are less flexible than payday loans with their income requirements. Before applying, check that the lender accepts child tax credit to save yourself time.

Do I qualify for an installment loan?

Basic requirements for an installment loan include the following:

  • Be the age of majority in your province or territory (18 or 19)
  • Be a Canadian resident
  • Meet the minimum income
  • Meet the minimum credit score
  • Have an active bank account

Compare installment loans

How to apply for online child tax loans

  1. Check your credit score. Get your credit report for free from Equifax or TransUnion and correct any discrepancies. The process can take several weeks, but it can increase your credit score. If you’re pressed for time, you can sign up for credit score monitoring to get an idea of your score via a soft credit check.
  2. Compare lenders. Compare interest rates, fees, repayment terms and eligibility requirements of 3-4 online child tax loans.
  3. Find out if you’re eligible. Check that you meet the lender’s credit score and income requirements.
  4. Apply online. Applications usually take less than 10 minutes. Provide details such as your name, email address, birthdate and Social Insurance Number (SIN). (You can also click “Go to site” in the table above to be redirected to a lender’s application page.)
  5. Wait for a decision. Some lenders are fast and can give a decision within minutes.
  6. Get verified. Provide any documents the lender may require to verify your identity and income.
  7. Sign your contract. Review the terms of your loan and sign.

Tips for getting online child tax loans

  • Know the provincial regulations. If you’re getting a payday loan, become familiar with the payday loan regulations of your province to protect yourself from illegal practices. The provinces differ in what’s allowed and what’s not.
  • Do not rush. Do not sign a contract without understanding the terms of your child tax loan, including your interest rate, loan term and repayment schedule. Avoid lenders that pressure you into signing.
  • Make sure you can afford it. If you’re getting a payday loan, the lender will automatically withdraw the amount from your bank account on the due date. Make sure you have the funds in your account to avoid penalties. If you’re getting an installment loan, the lender will withdraw based on the schedule in your contract.
  • Ask for a fee breakdown. Is there an origination fee (processing fee that’s deducted from the loan amount)? NSF or late payment fees? Prepayment penalties? Ask the lender to break down all the fees for you.
  • Avoid lenders that ask for payment up front. Legitimate lenders will not do this.
  • Steer clear of lenders that require insurance. Legitimate lenders can offer loan insurance as an option for installment loans, but it should never be required. Insurance adds to the cost of your loan.
  • Watch out for scams. Be wary of providing your personal and financial details when searching for online child tax loans. Become familiar with personal loan scams and payday loan scams.
  • Find a cosigner. If you have a trusted friend or family member with a good credit score, you can enlist them as a cosigner to increase your chances of approval and potentially get a more competitive rate. But if you default on your payments, your cosigner’s credit score will also go down.
  • If you can, improve your credit score first. This may not be an option for those with a financial emergency, but if you can wait at least 6 months, improve your credit score by paying your debts on time. A higher credit score can get you online child tax loans with better terms.

Representative example: Anna, an Ontario resident, needs $500 fast

Anna, a resident of Ontario, is in urgent need of $500 due to some unexpected expenses. She needs a loan within 2 days. Thanks to a free copy of her credit report from Equifax, she knows her credit score is 549. Anna has 2 children and receives the Canada Child Benefit, which she’ll receive in about 3 weeks. She searches for loans in Ontario that accept the child tax benefit as a valid source of income.

Based on these factors, Anna narrows down her choices to payday loans and installment loans.

Payday loan that accepts child tax benefit in OntarioInstallment loan that accepts child tax benefit in Ontario
Loan amount$500.00$500.00
Cost of loan$15 per $100 borrowed = $75 (260.71% APR)46.93% APR
Loan term21 days6 months
Payment amount One full payment of $575$95.10 monthly for 6 months ($70.63 in total interest)
Total loan cost$575$570.63

In this case, the installment loan is nearly as expensive as the payday loan if you’re comparing the dollar amounts. But looking ahead, Anna doubts she’ll have enough income left over to pay for her other debts once she repays her $575 payday loan on the due date. Without enough income, she might have to take out another payday loan.

Thinking that 6 monthly payments of $95.10 would be more manageable and would put less strain on her current finances, she chooses the installment loan.

*The information in this example, including rates, fees and terms, is provided as a representative transaction. The actual cost of the product may vary depending on the retailer, the product specs and other factors.

What is the Canada Child Benefit?

The Canada Child Benefit (CCB) is a tax-free payment provided to families to help with the costs of raising children. The maximum benefit per year is around $6,833 per child under 6 and $5,765 per child aged 6 to 17, but how much each family gets will depend on their annual income as well as the age of their children.

Families earning less than $30,000 per year will typically get the maximum benefit for each child while those who earn over $150,000 won’t be eligible to claim the benefit. If you want to qualify for the CCB, the most important thing to remember is that you’ll need to make sure that you file your income tax return on time every year.

How can I apply for the CCB?

To apply for the CCB, you must be a Canadian resident and have at least one child under the age of 18 in your primary care. If you meet the eligibility requirements, you can register online via your CRA account or by completing an RC66 form with your tax return. The Canadian government also offers the option of applying when you complete your newborn’s birth registration via the Automated Benefits Application.

Why would I need a loan if I have the Canada Child Benefit?

The CCB is only a small amount that may not cover all of your regular expenses. Because the amount you qualify for can be a combination of various sources of funding, including provincial and territorial funding, the maximum amount you could receive varies depending on where you live, your family net income and other factors.

For example, recipients living in Ontario between July 2019 and June 2020 could get up to $119.50 per month for each child under 18. Whereas, recipients living in Alberta over the same time period could get up to $96.25 per month for the first child and up to $48.08 per month for the second, third and fourth child. Remember, these are the maximum amounts – you could end up getting less.

And if unexpected costs come up – say, medical treatments, car repairs or educational expenses – you may need a little extra to tide you over.

Bottom line

You can use your Canada Child Benefit (CCB) to help you qualify for loans that accept child tax. You can get a payday loan or installment loan. Payday loans are more expensive, but they have more flexible eligibility criteria.

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