We feel your hardship and challenges of trying to raise kids single-handedly. It is even challenging when you don’t have enough money to pay for simple needs that arise daily. You don’t have to suffer alone, while Lend for All has a solution for a parent like you by paying bills, pay school fees, house rent, and other extras with our fast processed loans.
Our loans help you settle unexpected expenses that arise to keep your life running smoothly. We make sure your children, whether you have one kid or more plus yourself, never lack important things in life.
It is tough relying on a single income and yet unable to cover all your expenses, especially where children are involved. You are at the right place, and proceed with this post to see how a single parent loan can benefit a single parent like you.
Financial Support Available For Single Parents
The options available for single parents to apply for loans are few in Canada, comprising but not certainly limited to:
Single parents can apply with the federal government in Canada and qualify for several financial assistance and tax credits, for instance:
GST Tax Credit/ HST – Single parents and families that have low income are eligible for free tax three-monthly payments to allow them to offset partial or full amount taxes for goods and services yearly.
Territorial Credits and Benefits/ Provincial: Based on where you stay, you may qualify for other programs that are provided by the government. For instance, in British Columbia, single parents can acquire (BC Early Childhood Tax Benefit) which provides tax-free payment once-a-month to families with children below 6-years of age.
Canada Child Benefit (CCB) – Helps single parents with a tax-free payment once-a-month if their child is below 18-years of age. The payments are based on the parent’s condition, the number of children, and the area where the family stays.
Single parents can successfully qualify for alternative loans if the government doesn’t have any benefits to offer and when financial institutions fail to secure you a loan. Alternative loan lenders are not strict like banks and other financial institutions.
Therefore, you can acquire loans very fast by making loan applications online. They even approve loans against your territorial or provincial benefits. However, before you rush for alternative loans, consider first the risks involved.
- You may acquire small loans for a short duration and end up repaying a large amount
- Alternative loans may have high fees and very high-interest rates
- You may get scammed since government struggle to regulate private lending companies
What type of Loans Can Single Parents Get with Alternative Lenders?
If you are a single parent and do not have good credit ratings, there are several alternative loan options in Canada.
Personal Loan: This is a large amount of liquid money put into your bank account and required to repay in installments. Going for an alternative personal loan is easy to qualify than a bank’s personal loan.
CCB Loans: Some lending companies in Canada can easily approve cash in advance through your Canada Child Benefit as a substitute payment mode because it qualifies you as a source of income.
No Credit Check Loan: This type of loan is where the lending company approve a loan based on other aspects such as unpaid debts plus income without asking for your credit report.
Bad Credit Loans: Bad credit loans are considered for people that fall between 300 to 600 credit score, and rarely can a bank approve a loan with those ratings. Luckily, you can get numerous bad credit lending companies that forego credit scores and approve loans with easier requirements.
Payday Loans: If you have no other option, a payday loan can work for you. However, payday loans are extremely costly to repay for their high rates, which require you to settle within 14 days. Also, when you default payday loan can cause you severe penalties.
What Are the Minimum Requirements to Qualify For a Loan as a Single Parent?
To qualify for a loan, you need to satisfy the lending company with few details to gauge whether you repay. Of course, it depends on the lending company, and some of its aspects depending on the amount you plan to borrow and your financial standing. Here are factors that determine your qualification about your loan requirements as a single parent.
Job-status: Most lenders will scrutinize your employment and income details to see whether you qualify for a loan. It is advisable to ask for a loan when you have a steady job and adequate income to help you repay a loan without straining yourself or defaulting.
Credit Score: When your credit score falls in between 650 to 900, show you are punctual in repaying your past loans, and that may favor you for loan consideration. Some lenders never check credit score but prefer to use other factors to verify your eligibility.
Income Level: If you have a stable income, you have to qualify for loans of large amounts and with less interest rate. Some lenders prefer borrowers with an income of not less than $1000 to $2000 before approving your requests.
Debt Level: If you have unpaid lots of debt, that places you in an awkward position when looking for a loan. And that means if you qualify for a loan with another debt, it will affect your interest rate, repayment duration, and amount of money. To avoid such scenarios, you better deal with any outstanding debts before you go for another one.
Assets: Lenders may ask to check your assets plus liabilities before proceeding with a loan. They may demand to check your home or car to determine whether to give you a loan depending on their status. They can also decline to approve any loan for you if you are still paying your home and car loan.
When you understand what lenders want and are confident about meeting the loan demands, securing a single parents loan is easy. You should look for a lending company that resonates with your loan needs and secure the loan of your choice.