How To Get A Loan With The Canada Workers Benefit (CWB)August 28, 2020
If you’re a low-income individual receiving the Canada Workers Benefit (CWB), you may be wondering what loan options are available when you’re hit with a financial emergency. Discover what type of loan is best for your situation and how to get approved for one today.
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The Canada Workers Benefit (CWB) is a refundable tax credit that puts more money in the pockets of low-income workers. It’s an enhanced version of the Working Income Tax Benefit and includes a disability supplement for eligible Canadians.
The CWB is an excellent government program because it helps struggling Canadians afford everyday essentials. But what happens when the benefit is not enough to cover an unexpected expense such as a medical emergency or car repair? If you can’t wait until tax season, advance CWB payments are possible, but they only occur four times throughout the year; on the fifth day of January, April, July, and October. That’s when a cash advance loan may come in handy.
Click here to go straight to the application and get approved for your CWB personal loan today!
Can I get a loan while receiving CWB payments?
Yes, just like the Canada Child Benefit, you’re able to get a loan while collecting other government benefits, including the CWB. It also won’t affect your CWB eligibility because loans are considered debt, not income. In fact, being a CWB recipient can improve your chances of loan approval as lenders will use the benefit as proof of income.
Before applying for a loan, make sure to do your research and figure out what type of loan and interest rate you’re comfortable taking on. You should also make a budget so you have a solid debt repayment plan in place.
What types of loans are available to CWB recipients?
As a low-income individual, your chances of getting a loan from a major bank or credit union are slim. However, that doesn’t mean it’s impossible to secure the credit you need. Payday loans and personal loans are widely accessible to CWB recipients, though keep in mind there are drastic differences between the two.
- Payday loan: Payday loans promise instant cash and in many cases, guaranteed approval with no credit check. They look like the perfect solution when you’re going through a financial emergency, but you know what they say: if it sounds too good to be true, it probably is. Payday lenders often trap vulnerable Canadians into a vicious cycle of debt using predatory tactics like insane interest rates (APRs can reach a whopping 651%), hidden fees, and short repayment periods. It’s wise to avoid payday loans entirely because of the high risk associated with them.
- Personal loan: Personal loans, on the other hand, are better than payday loans in every aspect. Also called installment loans, these loans give you quick access to cash without the astronomical interest rates of payday loans. They also offer flexible repayment periods so you can choose a longer term to make lower monthly payments or a shorter period to save on interest. Personal loans can also improve your credit score when used responsibly, something that’s impossible to do with payday loans.
How do I improve my chances of loan approval?
You can increase your odds of getting approved for a loan by:
- Mentioning government income support: Payments from government assistance programs are considered income and can strengthen your loan application. Make sure to tell your lender about your CWB payments and mention any other government income support you receive.
- Securing the loan with collateral: If you own your car or residence, consider putting them up as collateral to get a secured loan. A secured loan is easier to qualify for because there is less risk for lenders. This kind of loan also comes with benefits like lower interest rates and larger loan amounts.
- Maintaining a good credit score: Lenders are more likely to give you a loan if you have a credit score of 650 or higher. If your number falls below this range, check out these easy and effective tips to boost your rating.
- Getting a co-signer: If you need a loan ASAP and don’t have time to improve your credit score, your best bet is to find a family member or trusted friend to co-sign the loan. Having a co-signer puts lenders at ease and can help you obtain better interest rates.
Get a personal loan with the Canada Workers Benefit
There’s no need to lose sleep over that unexpected home repair or resort to dangerous payday loans. Trusted by Canadians across the country, Spring Financial can give you a personal loan of up to $35,000 if you’re a CWB recipient. Applications can be completed in minutes from the comfort of your home, even if you have bad credit. Loans from Spring Financial also come with customizable repayment plans, no hidden fees, and much lower interest rates compared to payday loans. Lightning-fast funding also ensures you typically get your money in less than 24 hours after approval.
Ready to use your Canada Workers Benefit to qualify for a loan? Get approved in minutes by applying online today.