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What are Installment Loans on Child Tax?

The Canada Child Benefit (CCB) is a tax-free payment that is paid monthly to eligible families and single parents. This benefit is usually used to cover the cost of child-related expenses, but it is not always enough to cover the entire cost of raising a child. In this case, a family or single parent may want to apply for an installment loan to supplement their child’s benefit.

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Written by: Piggyy

Rating

4.9/5

Loan Term

1 - 60 months

Est. APR

% 19.9 - 46.9

Loan Amount

$1,000 - $15,000

Rating

4.3/5

Loan Term

12 - 60 months

Est. APR

% 19.9 - 46.8

Loan Amount

$1,500 - $20,000

Rating

3.9/5

Loan Term

12 - 60 months

Est. APR

% 46.93

Loan Amount

$100 - $15,000

Nowadays, many lending companies accept CCB as a form of income, allowing families and single parents to apply for an installment loan to help them cover their living expenses. In this article, we will take a closer look at what an installment loan on child tax is and what you need to know about it.

 

Companies that Accepts Installment Loans on Child Tax

 

One of the perks of receiving monthly CCB is that you may be able to use it as leverage to get an installment loan. However, in order to get approved for an installment loan, you need to find out which lending companies accept child tax credit as a form of income.

 

Here are some popular lending companies that offer installment loans on child tax:

 

Magical Credit

Magical Credit offers installment loans on child tax of up to $20,000, with an interest rate between 19.99% to 46.8%. Their repayment term is from 6 months to 60 months.

 

Cash 4 You

Cash 4 You offers installment loans on child tax ranging from $1,000 to $10,000, with a flat interest rate of 46.93%. You can pay your loan between 12 months to 60 months. 

 

Money Mart

Money Mart is another famous Canadian lending company that accepts CCB as a form of income. They offer installment loans of up to $1,000 to $15,000 with a repayment term of 12 months to 60 months. They charge an interest rate ranging from 29.9% to 46.9%. 

 

Main Features Of Installment Loans on Child Tax

 

Here are some essential things to bear in mind when applying for an installment loan on child tax:

 

Interest Rates

Installment loans on child tax make a better option for borrowers as their interest rates are lower compared to payday loans. However, it’s important to note that a lender can only legally charge you a maximum interest rate of 60%.

 

Personal Loan Amount

You’ll be able to qualify for a more considerable installment loan amount when you apply for a personal loan that accepts child tax as a source of income. The amount can easily range from $300 to $10,000.

 

Term Length

One of the reasons why an installment loan on tax credit is more affordable is because the loan terms can extend to 5 years or more. This gives you more flexibility to pay back your loan. 

Frequently asked questions

How much can I get from Canada Child Benefit?

The maximum amount you can get under the Canada Child Benefit program is:

  • $6,833 per year for each child under the age of six
  • $5,765 per year for each child between the ages of 6 and 17 years old

Parents who have a child with a physical or mental disability can also qualify for an extra $2,915 per year for each child under the Disability Tax Credit.

Will applying for installment loans affect my Canada Child Benefit?

No, because a loan is considered a debt and not an income. Canada Child Benefit only looks at your income and income tax returns.

What are the requirements needed to apply for installment loans on child tax?

There are different requirements that lenders may ask for with any loan application. The most basic ones are proof of identification, proof of income, and proof of bank statement or government form showing your Canada Child Benefit payments.

Can I apply for installment loans on child tax online?

Yes, most of the lenders are available online. However, we strongly recommend that you do some research and look for customer reviews to confirm if they are an honest lending company.

How much will I be allowed to borrow?

The easiest way to determine how much you will be allowed to borrow is to get a pre-approval from your chosen lending company. There are some lenders who offer this option for free, and you can do so by simply filling out a short online form. Doing so will allow you to review your options and choose the one that best suits your financial needs.

Conclusion

 

If you are struggling to make ends meet and you have a Canada Child Benefit, then you can easily get an installment loan. There are several lenders that are willing to give you a loan on child tax, as long as you have the correct documents and your income is sufficient to repay the loan.

Piggyy

״The secret of happiness, is not found in seeking more, but in developing the capacity to enjoy less״ - Socrates

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