Child tax loans are a relatively new type of loan in most Canadian provinces, largely based on acquiring loans associated with Canadian child taxes benefits (CCTB or CCB). The concept behind this loan is to offer loans to eligible participants who are recipients of the Canada child tax benefits in a bid to mitigate the effects of unforeseen expenditures.
Getting access to loans can be quite the challenge, especially traditional loans which require rigorously bureaucratic processes that may need high credit scores, and verifiable sources of income to get a loan approval. Even the loan brokers are not exempted as most loans are designed to align with the loan approval practices of traditional financial institutions like banks.
What Are Child Tax Loans and How Can They Help Your Family?
As stated earlier in this article, Child tax loans are quick loans provided by loan brokers to families who are recipients of the Canada Child Tax Benefit (CCTB or CCB) funding. These funds are often available to families who meet certain criteria with children under the age of 18.
Child tax loans exist on the premise of providing faster funding for emergency expenses to pay back at a later date when the Child Tax Benefits will be paid to the recipient family. In many ways, this loan type is similar to the unemployment loan also offered by WeLoans.
Unlike traditional loan types, prospective loanees who are applying for a child tax loan from WeLoans do not need to verify their income sources or employment status since they are recipients of the CCTB which is paid at specific periods by the government.
A Step-by-Step Guide to Applying for Child Tax Loans
To apply for a child tax loan on WeLoans, simply follow these steps:
- Step 1: Fill out the application form on the WeLoans website for child tax loans with the correct information.
- Step 2: Compare offers between lenders based on the viability of your application. The more viable your application, the more likely you’d receive more offers.
- Step 3: Accept an offer and wait for the loan to be disbursed to the provided account.
Thankfully, WeLoans, an online loan platform offers child tax loans among many other loan types such as installment loans, payday loans, and even unemployment loans. You can learn about many different loans like payday loans by visiting WeLoans’ website.
The eligibility requirements for all loans at WeLoans are very similar. Here are some of the eligibility requirements to qualify for a WeLoans Child Tax Loan：
Credit Score Checks: To qualify for a child tax loan, partner lenders will most likely check credit scores to ensure a certain level of financial discipline. While a low credit score may not disqualify a potential loanee outrightly, it may reduce their chances of securing this type of loan.
Financial History: Similar to credit score checks, most lenders will lend willingly to potential loanees who have never filed for bankruptcy. Once again, this doesn’t mean that individuals who have filed for bankruptcy cannot access the Child tax loan. It only means that it becomes more difficult for such individuals to get competitive offers from lenders.
A Recipient of CCTB: The idea behind this type of loan is primarily based on the ability of the loanee to pay back the loan with cash received from CCTB or CCB funding. This implies that to be eligible for child loans from WeLoans, the recipient must prove that they are recipients of the Canada Child Tax Benefit scheme.
Age Requirements: As is the case with most loans offered by WeLoans and other loan brokers within Canada, it’s a matter of regulation that all prospective loanees are at least 18 years of age at the time of applying for the loan.
Canadian Resident: To qualify for the child tax loan, prospective applicants must be Canadian residents, and they must prove their place of residence by providing a utility bill, or other acceptable forms of verification.
Functional Bank Account: A functional bank account is also an eligibility requirement to access the child tax loan from WeLoans. This is required for loan disbursement when an application has been submitted and offers accepted.
WeLoans offers varying loan amounts based on the type of child tax loan provided. Applicants for Installment loans in this regard can get up to $15,000 with a repayment period of 36 months.
Factors to Consider When Comparing Child Tax Loans
The whole idea of applying for loans is to mitigate certain financial challenges which implies that precautions must be taken to avoid a debt loop or failed loan request. Here are some factors to consider when comparing child tax loans from multiple loan brokers
- Availability of funds: The availability of funds is an essential factor when applying for child tax loans since these loans are designed to meet emergency needs.
- Funding cost: It’s advised to check the funding costs of multiple reliable child tax loan providers as these costs which include penalties for defaulting payment, and interest rates can cause more drastic financial implications if left unchecked.
- Customer reviews: A legitimate child tax loan provider will often have verifiable customer reviews to ensure the authenticity of its claims. It’s advised that potential loanees seek out these reviews to mitigate the risks associated before they get a loan.
Conclusion
Child tax loans are becoming widely accepted by the Canadian public.
Prospective borrowers who are recipients of social assistance schemes such as the CCTB have a chance with WeLoans if they meet other eligibility requirements. Individuals with bad credit are also not left out and can get critical financial help based on their current verifiable income levels.
WeLoans guarantees a more welcoming financial environment for everyone, but it’s important to remember that loans should only be applied for when absolutely necessary and utilized responsibly. Financial responsibility is still a crucial component, particularly for people with poor credit scores
