Payday Loans That Accept Child Tax in Canada

Some payday lenders in Canada may accept child tax benefits, also known as the Canada Child Benefit, as a source of income. The Canada Child Benefit is a tax-free monthly payment from the CRA that helps eligible families with the cost of raising children under 18.

This can matter if you do not have traditional employment income but still receive regular monthly payments. Some lenders may consider government benefits, including child tax payments, when reviewing your application. Others may only accept employment income, so it is important to check the lender’s requirements before applying.

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1. KOHO (Payday Loan Alternative)

With KOHO Cover, you can:

• Get up to $250 as an instant cash advance (amount depends on eligibility)

• Pay no interest on the advance

• Avoid a credit check

• Repay automatically once you add money or get paid

You subscribe to the Cover bundle for a low monthly fee, and in return you get the advance feature plus extras like a credit report, financial coaching, and priority support.

2. Spring Financial

With Spring Financial, you can:

• Apply for an installment loan, not a payday loan

• Borrow $500 to $35,000, depending on approval

• Repay the loan through fixed monthly payments over 6 to 60 months

• Get a same-day decision after applying

• Use Canada Child Benefit payments as part of your income review

• Apply even if you have bad credit, though approval is not guaranteed

3. iCash

With iCash, you can:

• Apply for a payday loan from $100 to $1,500

• Use Canada Child Benefit payments and other government benefits as income

• Get an online approval decision quickly

• Receive funds by e-Transfer, sometimes within 15 to 30 minutes

• Pay a borrowing cost of $14 per $100 borrowed, depending on your province

4. Magical Credit

With Magical Credit, you can:

• Apply for a payday loan from $100 to $1,500

• Use child tax benefit income as part of your application

• Complete the application online

• Get a fast approval decision

• Pay a borrowing cost of $14 per $100 borrowed, depending on your province

Conclusion

Payday loans that accept child tax benefits can give some families access to emergency money when they do not have employment income. But they can also be costly, especially if you cannot repay the full amount on time.

Before applying, check whether the lender accepts Canada Child Benefit payments as income, how much you can borrow, when repayment is due, and what fees may apply. Even when payday loan fees are capped, borrowing can still become expensive because the repayment window is usually short.