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Bottom line: KidVantage is a new loan program for parents struggling to cover childcare costs. But it won’t be available in all states until 2021.
Max. Loan Amount | $2,000 |
---|---|
APR | 6.9% to 21.09% |
Interest Rate Type | Fixed |
Min. Credit Score | 650 |
Origination Fee | Up to 0% |
Late Fee | $35 |
Loan Term | No data available |
The KidVantage loan works more like a credit card than your standard personal loan. If you’re approved, the KidVantage loan will cover a percentage of your monthly child care expenses — starting at 40% and going up to $2,000.
JSF pays your child care providers on the first of each month, and payments from the borrower are due on the 27th. You can make a monthly payment on your balance. Or if you pay it off in full, you can avoid paying interest on that month’s expenses.
JSF charges interest on any balance that is left after the 27th, and its rates run from 6.9% to 21.9%. And if you sign up for automatic payments, you can qualify for a 0.5% rate discount.
The only other fee is if your payment doesn’t come in on time. JSF also charges a $35 fee if your payment is late or bounces. There’s no origination fee or annual fee.
While there’s no lender that’s quite like KidVantage, here’s how it stacks up to other personal lines of credit.
KidVantage |
Upgrade Card lines of credit |
Credible personal loans |
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★★★★★ |
★★★★★ |
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APR 6.9% to 21.09% |
APR 8.99% to 29.99% |
APR 3.99% to 35.99% |
Loan Term No data available |
Loan Term Up to 5 years |
Loan Term 2 to 7 years |
Loan Amount Up to $2,000 |
Loan Amount $500 to $50,000 |
Loan Amount $600 to $100,000 |
Min. Credit Score 650 |
Min. Credit Score 600 |
Min. Credit Score Fair to excellent credit |
Compare even more personal loans
KidVantage is a new product, so there aren’t any reviews as of February 2021.
Parents must meet the following requirements to qualify for the KidVantage loan:
JSF isn’t launching the KidVantage loans program in all states at the same time. Colorado and California residents were the first to have access to this loan. But JSF says it’s planning on rolling it out to all states by the end of 2021.
You can apply by filling out a short application on the JSF website. You’ll need to provide your basic contact information, monthly income, housing and child care expenses. Then read the disclosures and submit the form.
After you submit your application, you should receive a tentative offer and steps to complete your application and register your child care provider for payments.
JSF is currently offering two promotions. One gives you $100 toward child care and another gives you 0% interest for the first six months.
The KidVantage loan program is one of a kind. Few lenders will regularly disburse funds to your child care provider each month — if any. And most loans don’t come with the option to pay off the balance in full each month.
Its rates are also relatively low even compared to other personal loans. It’s common for lenders to charge up to 36%, which is the legal limit in many states. But if you have excellent credit — or a score over 740 — and make a salary well over the $35,000 minimum, you might be able to find a lower rate with another personal loan provider.
Yes, the KidVantage loan program is legitimate in that it’s upfront about the rates, terms and fees that you can expect. You can also easily get in touch using its live chat feature or calling the customer service line.
Launched in the middle of the coronavirus outbreak, the KidVantage was partly created from personal experience.
“We have two kids and have experienced firsthand the financial strain we are solving,” said JSF Chief Analytics Officer John Chalekian in a statement.
“Many parents face challenges in finding care that fits in their budget. They often settle for a lesser option in selecting a facility or provider. Many leave the workforce despite a preference to remain or opt to use high-interest credit to pay for care. We’ve created flexibility and the opportunity to make the best child care decision at a monthly payment families can afford.”
Compare KidVantage to our picks for the best personal lines of credit before you sign up.
Photo: Getty Images
Review by
Anna Serio is a trusted lending expert and certified Commercial Loan Officer who's published more than 1,000 articles on Finder to help Americans strengthen their financial literacy. A former editor of a newspaper in Beirut, Anna writes about personal, student, business and car loans. Today, digital publications like Business Insider, CNBC and the Simple Dollar feature her professional commentary, and she earned an Expert Contributor in Finance badge from review site Best Company in 2020.
The KidVantage loan program is made specifically for parents struggling with the cost of child care from Jump Start Finance (JSF). It send monthly payments directly to companies and individuals that care for your kids, such as nannies, daycares and preschools.
With interest rates from 6.9% to 21.9%, it’s less expensive than putting these costs on a credit card. But since it’s new, there are no customer reviews and it might not be available in your state — yet.