Life can be unpredictable. One moment you’re cruising along at a steady pace, and the next thing you know, you’re suddenly faced with unfortunate circumstances. Whether it’s a job loss, a sudden health issue, or an unexpected home repair, these events can put you in a tight financial spot, prompting a quick scramble for cash.
Can I Get a Loan with Child Tax?
Absolutely! The Canada Child Benefit (CCB) can serve as proof of income and play a pivotal role in securing a short-term loan.
Where Can I Get a Payday Loan with Child Tax?
Several financial institutions are open to lending to customers based on their CCB benefits (sometimes referred to as a child tax loan), including payday lenders. Payday loans can be a financial lifeline for those who find themselves in a bind. They provide quick access to cash for people who need help before their next paycheque. As a leading payday loan provider, Speedy Cash recognizes that financial stability comes from various sources, and not all individuals may have traditional forms of income. Since CCB is a reliable, tax-free monthly payment made to eligible families, we recognize it as a legitimate income source when evaluating loan applications.
Our process is straightforward, and you can apply for child tax loans in-store or online ranging from $200 to $1,500. Once approved, you can expect to receive your child tax loans quickly, either as cash-in-hand or via an e-transfer straight to your bank account.
Requirements for Child Tax Loans
A Government Issued Photo ID is a standard requirement for most financial transactions to verify your identity. It could be a driver’s license, passport, or any other government-issued ID that includes your photo.
A blank cheque from your personal bank account or a pre-authorized debit form allows the lender to withdraw the loan repayment from your account on the due date. This is a way for the lender to ensure they can collect the payment.
A 60-day bank statement from the date of application gives the lender an overview of your financial situation. By seeing your deposits and withdrawals, they can assess your income stability and ability to repay the loan. For child tax loans, this statement would ideally show the regular deposit of your Child Tax Benefit.
Proof of address, such as a utility bill, lease agreement, or any other document that shows your current address, must be submitted. It helps the lender confirm your contact information and, in some cases, the length of your residence, which could be a factor in the lender’s decision.
Tips for Faster Approval of Child Tax Loans
Keep detailed records of your CCB payments and any correspondence regarding the changes in benefits. If a lender seems hesitant, try to illustrate the stability and regularity of the CCB. Maintaining a good record will help you communicate effectively with lenders about your income stability. You can download your CCB payment history from the CRA website. If your payments are irregular, contact CRA to understand why and rectify it.
It’s essential to be transparent with lenders about your sources of income. Accurately report all sources of income and debts, if necessary. Lenders will likely verify this information, and dishonesty can lead to denial.
If possible, diversify your income sources. This could involve part-time or freelance work or other types of income. A diversified income can show lenders that you have multiple ways to repay the loan, making you a less risky borrower.
Ensure you’re dealing with a licensed and reputable lender. Understand the loan’s terms and conditions, fees, and interest rates before agreeing to anything.
Will Child Tax Loans Hurt My Credit Score?
A payday loan using the Canada Child Benefit (CCB) as proof of income will not necessarily impact your credit score directly. Most payday lenders, such as Speedy Cash, only report to the credit bureaus if the loan goes into collections. Simply taking out child tax loans will often not appear on your credit report or affect your credit score. However, remember that if you fail to repay your child tax loans, they can negatively impact your credit score.
Let your Child Tax Benefit work harder for you. Speedy Cash is dedicated to helping you navigate life’s financial storms and uncertainties. We offer in-store and online payday loans that accept child tax benefits, providing you with a viable solution to your immediate cash concerns. Visit our website or drop by your nearest branch to learn more or Apply for a Child Tax Credit Loan online by starting your application HERE.