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.
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 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.)
24/7 approval and funding, instant transfers with a fee, no credit check
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.
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.
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
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:
Installment loans. Child tax installment loans from alternative lenders are easier to get than personal loans from banks or credit unions. Borrow up to $10,000.
Cash advances. These are mini loans of up to $250. Depending on the provider, the advance may be free or you may pay a monthly fee. They’re easier to get than installment loans.
Payday loans. These are small loans of up to $1,500. They’re also easier to get than installment loans.
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 - 62 days. Also, unlike other provinces, lenders must allow you to repay the loan in at least two to three 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 two 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 payday loan 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.
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 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
While eligibility criteria for child tax installment loans 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.
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 in Alberta
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 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.
What is 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 in Alberta, 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.
You can get child tax loans in Edmonton from any of the online lenders listed above. If Edmontonians want to get a payday loan in-person, Money Mart has over 15 store locations scattered across Edmonton.
Yes, many online child tax loan payday lenders in Alberta, like iCash, offer e-transfer for funding within minutes of applying. Even if installment loan providers don't provide e-transfer, they typically directly deposit money into your account.
Yes, you can. Payday lenders don't look at your credit score and shift the focus to your income. While lenders providing installment loans will often pull your credit score, you can also opt for a bad credit installment loan. You'll pay excessive interest rates on both options, though.
Carmen Chai is a freelance writer at Finder, specializing in financial products. She is an award-winning Canadian journalist who has lived and reported from major cities such as Vancouver, Toronto, London and Paris. She has reported on personal finance, mortgages, and banking products for nearly a decade.
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