Tax season brings its own set of financial considerations for borrowers — from managing a balance owing to deciding what to do with a refund. Here's how it intersects with personal loans.
If You Owe the CRA
Compare a personal loan's APR against the CRA's current prescribed interest rate on unpaid balances — a lower-rate loan can be cheaper than accruing CRA interest and penalties, but the CRA also offers payment arrangements directly, worth checking first.
Using Your Refund Wisely
If you're expecting a refund, consider applying it toward any existing high-interest debt before other spending — it's a lump-sum opportunity to reduce a balance faster than scheduled payments alone.
Self-Employed and Gig Workers
Tax season often clarifies your actual annual income through your Notice of Assessment — useful documentation if you're planning to apply for a loan as a self-employed or gig worker.
Avoid Refund Anticipation Loans When Possible
Some services offer an advance on your expected refund at a cost — compare this against simply waiting for your refund or using a standard personal loan if you need funds before it arrives.