If you want to get a loan online using your Canada Child Benefit (CCB or CCTB), you can get a personal loan, cash advance or payday loan. CCTB payday loans are one of the easiest loans to get, but they are expensive and should be a last resort. Explore your options for online child tax loans here.
Compare personal loan providers that offer child tax loans
Get a child tax loan from these personal loan companies, many of which offer funding the same or next business day. Some providers work with bad credit applicants. But if your financial profile isn’t strong, be prepared to pay higher interest rates.
Compare cash advance providers that offer child tax loans
These cash advance providers 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 either an optional or required monthly fee depending on the provider.
Loan provider
Interest rate
Loan amount
Loan term
Key features
Early Pay
No interest or fees to access cash advance, fee for express funding (varies based on advance)
$20–$250
Next pay cycle (61 days max.)
Easy to apply, no interest, same-day funding for a small fee, no credit check
Compare payday loan providers that offer child tax loans
Some payday lenders offer child tax loans with instant approval. But the cost is very high, and most lenders require full repayment the next time you get paid. As such, this should be a last resort.
⚠️ 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. View payday costs and regulations by province here. 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 of payday loans per province
Always refer to your contract for exact repayment amounts and costs.
Province
Max. cost of borrowing a $100 payday loan
Cooling off period to cancel loan
Max. penalty for returned cheque or pre-authorized debit
Alberta
$15
2 business days
$25
British Columbia
$15
2 business days
$20
Manitoba
$17
48 hours excluding Sundays and holidays
$20
New Brunswick
$15
48 hours excluding Sundays and holidays
$20
Newfoundland and Labrador
$14
2 business days
$20
Nova Scotia
$15
Next business day (2 days for online loans)
$40 (default penalty)
Ontario
$15
2 business days
$25
Prince Edward Island
$15
2 business days
N/A
Quebec
Limit of 35% AIR
N/A
N/A
Saskatchewan
$17
Next business day
$25
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 of this type of child tax loan to a percentage of your net 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. Child tax payday loans in Alberta must have a minimum loan term of 42 days, which is not a regulation for the other provinces or territories.
Repayment. Payday loans are typically repaid in one payment, but it also depends on provincial regulations. In Alberta, for example, you repay your CCTB payday loan in at least two installments.
Borrowing fee. Depending on where you live, you’ll pay between $14 to $17 for every $100 borrowed.
Bad credit is okay. Payday lenders will shift their focus on your income instead. Not all lenders require credit checks.
Child tax credit is okay. The CCTB is a widely accepted income among payday lenders.
Fast. You can get CCTB payday loans within the same day when you apply online. You can often get e-transfer payday loans in Canada 24/7 using the child tax benefit, which is often the fastest funding option.
Do I qualify for payday loans that accept child tax?
Basic requirements for payday loans that accept child tax include the following:
Be the age of majority in your province or territory (18 or 19)
Be a Canadian resident
Have recurring CCTB income
Have an active Canadian bank account
Before you apply for online payday loans using child tax credit
Know how much it’ll cost. Payday loans are one of the most expensive child tax loan options, with annual percentage rates (APRs) in the triple digits. If you miss your payment, you’ll be charged NSF and late fees.
Check your budget. Before taking out a CCTB payday loan, make sure you’ll have enough money left to pay for debts and expenses after you repay your payday loan. Otherwise, you may find that you need another payday loan.
Make sure the lender is legitimate. Each province has its own rules about payday loans, such as maximum borrowing fees, late payment fees, cancellation period, rollovers and more. Licensed payday lenders must follow these rules.
How to compare payday loans that accept child tax
With many online child tax loans available, which lender do you choose? Consider the following:
Funding options offered. If you apply online, you can get a payday loan via e-transfer or direct deposit.
Speed and availability. Some payday lenders give approval and e-transfer 24/7, while with other lenders you’ll need to apply during business hours. Online lenders are usually more flexible than lenders that require in-person applications.
Reputation. Check for any red or green flags by reading customer reviews on sites like Trustpilot or the Better Business Bureau.
Can you get e-transfer payday loans in Canada 24/7 with child tax?
Yes, there are e-transfer payday loans in Canada that are available 24/7 and that accept child tax benefits. For example, lenders like iCASH and Pay2Day both offer 24/7 child tax loans. Pay2Day also offers 24/7 e-transfer payday loans with no credit check.
How 24/7 child tax loans work
With 24/7 child tax loans, you can apply any time, get an instant decision and get funded via e-Transfer within minutes after approval. The fastest 24/7 child tax loans can be completed in less than an hour online, even if you apply in the middle of the night. This is because payday lenders have automated systems that allow them to give approval and funding 24/7.
Not all payday lenders provide 24/7 child tax loans, so if you’re searching for this, find a lender that offers the following:
Accepts child tax credit as income
24/7 application
24/7 customer support (necessary if there are parts of your application that require a manual review)
24/7 e-Transfer
Can you get payday loans using your child tax benefit with no credit check?
Yes. Whether you’re in Ontario, BC, Alberta or another province, there are payday lenders that can accept child tax credit without a credit check. Rather than looking at your credit score, these child tax loan payday lenders will focus on your monthly income and debts.
You’ll need to give them your recent bank statements, and to get approved, your statements need to show you have enough income to repay a child tax payday loan.
How much do payday loans that accept child tax cost?
Since payday loans are provincially regulated in Canada, the overall cost of payday loans that accept child tax will vary based on where you live. Here’s a breakdown of how much a $500 payday loan would cost:
Certain installment loan providers offer child tax loans by accepting the Canada Child Benefit as a valid source of income.
Interest rates. Rates for child tax loans are based on your personal factors, but they are typically between 18% and 47%.
Loan amounts. Amounts are usually between $500 and $10,000.
Loan terms. Term lengths are 3 – 60 months.
Bad credit is okay. It’s possible to get an installment loan using child tax credit if you have fair or bad credit below 660.
Fast. Installment child tax loans are not as fast as payday loans, but you can typically get one within one to two business days.
Are there 24/7 child tax installment loans?
Unfortunately, no. Installment loans have stricter requirements than payday loans and are often harder to get. Lenders of child tax installment loans will need to manually look at your application at some point before sending funds, and they typically do not have staff working 24/7.
Some payday lenders can offer 24/7 child tax loans online because their processes are more automated.
Do I qualify for an installment loan using child tax?
Basic requirements for an installment child tax 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 Canadian bank account
Can I get a installment child tax loan with no credit check?
If you want an installment loan that accepts child tax, lenders will have stricter requirements than payday loan providers and often require a credit check. Some lenders of child tax installment loans don’t do credit checks, but you might be approved for less money and pay higher interest.
Be aware that scammers use the promise of “no credit check” loans to get applications with personal information.
How to compare online installment loans that accept child tax credit
APRs. The APR is the interest rate plus other fees to finance your loan expressed as a yearly cost. It gives you a truer view of the cost of different child tax loans.
Prepayment penalties. Installment loan lenders usually don’t charge fees for paying off a loan early, so be sure to avoid this.
Accepts child tax credit. Installment loans are less flexible than payday loans with their income requirements. Before applying, check first that the lender accepts child tax credit to save yourself time.
Reputation. Read customer reviews about the lender before you apply or sign a contract.
What else to watch out for with child tax installment loans
As mentioned, installment loans that accept child tax are harder to get than payday loans. If your financial situation is too risky for the lender—for example, you have poor credit and/or not enough income—the lender may offer other products to you, such as a credit builder loan.
With a credit builder loan, you won’t receive money until you make a series of on-time payments, usually for at least 6 to 12 months. And if you miss payments, you won’t get the loan. Make sure a credit builder child tax loan is right for your financial situation before you sign up for one.
How much do installment loans that accept child tax cost?
Child tax installment loans typically come with interest rates between 18% and 47% and loan terms of 3 - 60 months. You can typically borrow up to $10,000.
The interest rate, loan term and amount you qualify for will depend on factors like your total income and credit score. You can use the calculator below to price out how much a child tax installment loan could cost you every month and overall.
Installment loan cost calculator
Calculate the cost of a child tax installment loan
Early pay advances offer small, short-term loans that typically must be paid back with your next paycheque.
Interest rate: These types of child tax loans usually come with 0% interest rates, although you may sometimes need to pay a small monthly subscription fee depending on the app you use.
Loan amount: Typically between $20 and up to $150 or $200.
Loan term: Typically within 30 days or by your next paycheque.
Bad credit is okay. Some early pay advance apps, like Nyble, don’t do credit checks, which means it’s possible to get approved even if you have bad credit.
Fast. You can typically get this child tax loan in as little as 30 minutes or up to a few days.
Are there 24/7 child tax early pay advances?
Yes, you can often get an early pay advance child tax loan via e-transfer 24/7, depending on the company you opt for. Many of these options operate entirely on apps or online, so these early pay advances can be often be processed immediately and transferred to your account in as little as a few minutes. Keep in mind that standard funds delivery will typically take up to 3 days, unless you pay an additional fee for faster transfer.
Do I qualify for an early pay advance using child tax?
Basic requirements for early pay advance child tax loans tend to include the following:
Be the age of majority in your province or territory (18 or 19)
Be a Canadian resident
Show proof of regular income
Have an active bank account that can be linked to the app
Can I get a no credit check early pay advance?
Yes! Many early pay advance apps like Nyble don’t do credit checks during the approval process. These companies focus on assessing your ability to repay the loan by looking at factors like having a history of regular income and little or no NSF transactions.
Choose a type of loan. Your options in child tax loans online are payday loans and installment loans. Payday loans are extremely expensive and should be a last resort.
Compare lenders. Compare interest rates, fees, repayment terms and eligibility requirements of several online child tax loans.
Find out if you’re eligible. Check that you meet the lender’s credit score and income requirements.
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.)
Wait for a decision. Some lenders are fast and provide a decision in minutes.
Get verified. Provide any documents the lender may require to verify your identity and income.
Sign your contract. Review the terms of your loan and sign.
Receive your money. If you opt to get your child tax loan via e-transfer, you can get your money within minutes.
Tips for getting online child tax loans in Canada
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. If you need money in a hurry, read our guide to fast emergency loans here.
Check that you can afford it. Payday lenders automatically withdraw repayment from your bank account on the due date. Make sure you have enough money in your account to avoid penalties and pay for your other expenses. For installment loans, check that you can afford the monthly payments.
Ask for a fee breakdown. Is there a loan processing fee (origination fee)? NSF or late payment fees? Early repayment penalties? Ask the lender to list all possible costs.
Avoid lenders that ask for upfront payment. Legitimate lenders will not do this, so steer clear of those that do.
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 good credit, you can enlist them as a cosigner to increase your chance of getting approved and scoring a lower 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 if it’s low. While not a great option for financial emergencies, if you can wait at least six months, improve your credit score by paying your bills on time. A higher score can get you approved for a loan with better terms.
How much are child tax loans in Canada?
This depends on the type of loan you get. If you get a payday loan, the cost will depend on the maximum borrowing fee that your province allows for payday loans. If you get an installment loan, it depends on the APR you’re offered. Below is an example of how much a $500 loan may cost in both cases in Ontario.
Representative example: Anna, an Ontario resident, needs $500 fast
Anna, a resident of Ontario, is in urgent need of a $500 loan due to some unexpected expenses. She needs a loan within two days. Thanks to a free copy of her credit report from Equifax, she knows her credit score is 589. Anna has two children and receives the Canada Child Benefit, which she’ll receive in about three weeks. She searches for child tax loans in Ontario.
Based on these factors, Anna narrows down her child tax loan choices to payday loans and installment loans.
Payday loan that accepts child tax benefit in Ontario
Installment 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 term
21 days
6 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 CCTB 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.
The use of payday loans in Canada
According to data from the Finder: Consumer Sentiment Survey Q2, the use of payday loans is on the rise with 44% using these short-term loans in Q1 2023, compared to 19% in Q4 2022.
What is the Canada Child Benefit?
One of several “baby bonuses” paid from the government to parents, the Canada Child Benefit (CCB) is a tax-free payment provided to families to help with the costs of raising children. The maximum benefit is around $7,437 annually ($619.75 per month) per child under 6 and $6,275 annually ($522.91 per month) per child aged 6 to 17. The exact amount each family gets depends on their annual income and each child’s age.
Who is eligible for the Canada Child Benefit?
In order to get the Canada Child Benefit you must meet several qualification requirements, including:
Must live with a child who is younger than 18 years old
You must be the one primarily responsible for the child
Must be a Canadian resident for tax purposes
You or your spouse/common-law partner must be a Canadian citizen, permanent resident, protected person, Status Indian or a temporary resident who has a current, valid permit and has lived in Canada for the last 18 months.
Canada Child Benefit payments are paid out monthly, usually around the 20th. You can expect to receive your first baby bonus payment within 8 weeks of submitting an online application (if approved). Here’s the 2024 baby bonus payment schedule for recent and upcoming payments:
Friday, January 19, 2024
Tuesday, February 20, 2024
Wednesday, March 20, 2024
Friday, April 19, 2024
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, installment loan or early pay advance. Payday loans are the most expensive, but they have more flexible eligibility criteria. Early pay advances tend to be the most affordable child tax loan option, but they only allow very small loan amounts.
Yes, you can get a loan using child tax credit, although your options are limited to lenders who accept child tax as a valid source of income like payday loans and installment loans. Payday loans are extremely expensive and should be a last resort.
You can apply online for a child tax loan. Once approved, choose between an e-Transfer or direct deposit. Getting a child tax loan via e-Transfer is faster, but you'll need to be registered for e-Transfer with your bank first.
It's possible to get e-transfer loans with child tax income from a payday loan provider. Be aware that payday lenders offer high-interest, short-term loans that must be repaid in less than a month.
Banks and private installment loan providers have stricter application requirements, so it may be harder to qualify for an e-transfer loan with child tax.
You can qualify for payday loans using child tax benefits in Ontario. Payday loans in Ontario have a maximum loan amount of $1,500 and cost $15 for every $100 borrowed. There is also a two-day cooling-off period, where you can cancel the payday loan without penalty.
You can use your child tax credit to qualify for a payday loan or installment loan in Newfoundland. Payday loans in Newfoundland cost $14 for every $100 borrowed. Installment loans in Newfoundland that accept child tax credit typically cost between 18% and 47% APR.
Yes, baby bonus payday loans in Canada are also referred to as child tax payday loans, where a payday lender will give you a cash advance based on your Canada Child Benefit income. Like all payday loans, you could qualify for up to $1,500.
No. You'll receive the same amount of money, because child tax loans are considered debt not income.
Leanne Escobal is a publisher for Finder. She has over 11 years of experience in financial services, specializing in content and marketing. Leanne has completed the Canadian securities course (CSC®) as well as the personal lending and mortgages course by the Canadian Securities Institute. She has a Bachelor of Arts (Honours) in English literature and creative writing from Western University.
Get a $1,500 loan as either an installment or payday loan. Learn about the pros and cons of each, plus compare lenders and apply today.
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