Parents receive child benefit for their children as long as they are not yet of legal age or are in training. Of course, children are expensive and the child benefit is far from sufficient to cover all costs.
But small grants are better than nothing – all parents see it that way. Since living with children is usually expensive, borrowing may be necessary to make the necessary purchases. If you want to take out a child benefit loan, you have to meet certain requirements. Child benefit alone is not sufficient as collateral and is not recognized by the banks as income.
Credit with child benefit – it can work
Whether you have a small loan or long-term mortgage, you have to prove that you are creditworthy and can meet the monthly payment obligation with every loan. Of course, this also means that you have a permanent job and a regular income. Social security benefits such as child benefit, sickness benefit, parental benefit and unemployment benefit are not considered as income by the banks.
After all, these benefits are usually limited in time and serve to maintain a minimal standard of living. For this reason, when borrowing, you can only count on your “real” income that you receive from a professional activity.
We recommend that you try to ensure you can afford repayments of your Child Benefit Loan.
You will build up a history of saving and borrowing with Advance Credit Union as you repay your Loan. If you keep up with your payments you will qualify for a loan at a lower interest rate and lower weekly repayments then our revolving credit.
Online comparisons are worthwhile
If you want a cheap loan with child benefit, you should look for the best provider on the Internet. Online banks usually offer better conditions than branch banks and are less critical when it comes to lending. For this reason, it is worth preferring online loans and all banking transactions via the Internet.
This not only saves you time, but also a lot of money. Depending on the amount of the loan, you will pay several hundred to a thousand dollars less for an online loan than if you opt for a “normal” loan. Whether online shopping or online banking – the Internet has many advantages.