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Magical Credit: Overview

Magical Credit has been helping Canadian consumers get approved for quick personal loans since 2014. They offer two types of personal loans: Magical Cash Loans and Magical Installment loans. Their number one goal is to provide access to the loan solutions Canadians want and need. 

Better yet, Magical Credit accepts a wide variety of incomes, including but not limited to:

Magical Credit specializes in working with low-income earners and bad credit consumers. If you’ve been turned down by your bank, and are looking to quickly cover the cost of an expense, Magical Credit could be the lender for you.

Our Verdict

Who is Magical Credit Best For?Consumers who: 
– Have bad credit
– Have an urgent need for fast cash
– Are unemployed (but collecting another form of income)
What We Like About Magical Credit– Large range of loans from small $100 cash loans to large installment loans up to $20,000
– No collateral is required for loan approval
What We Don’t Like About Magical Credit– High-interest rates compared to traditional lenders
– Loan term extensions are not available for the Magical Cash Loans.
– Magical Installment Loan is not available to residents in Saskatchewan, Manitoba, or Quebec

What Does Magical Credit Offer?

Magical Credit offers two types of loans:

Magical Installment Loans

You can get between $1,500 to $20,000 in fast cash with no need to prove good credit or a high income. You can get approved with a bad credit rating and income from non-employment sources, like Employment Income (maternity leave) or pension benefits.

These installment loans are open-ended, meaning you can pay it off early with no penalty. 

Magical Cash Loans

Magical Credit also offers cash loans, which are also known as payday loans, to residents of Ontario and British Columbia. You can get up to $1,450 with terms from 14 to 63 days. These loans must be repaid by the end of the term. No extensions or renewals are allowed. If you miss your payment or default on the loan, it will be reported to the credit bureau.

Magical Credit Loans: Snapshot 

Magical Installment LoansMagical Cash Loans
Loan Amounts$1,500 – $20,000$100 – $1,450
Interest Rates19.99% – 46.8% APR $15 per $100 borrowed
Approval & Funding TimeSame day EFT depositAround 20 minutes
AvailabilityAcross Canada (excluding SK, MB, QC)Ontario and British Columbia
Loan Terms12 – 60 months14 to 63 days

How Can I Get Approved By Magical Credit?

If you’re looking to apply for a loan, it’s important to realize that most lenders will check your credit report and financial profile to see how easily you could afford the associated costs. The general rule is that the healthier your finances are, the easier it will be to get approved for a large loan with a low-interest rate and a decent repayment plan. 

Luckily, Magical Credit specializes in bad credit loans, so qualifying with them may not be as tough as with a bank or other prime lender.

Here’s what you need to apply For A Magical Cash Loan:

  • Be at least 18 years of age
  • Have a monthly income of at least $1,200
  • Be a Permanent Resident or Canadian citizen

Here’s what you need to apply For A Magical Installment Loan:

  • Be at least 18 years of age
  • Have a monthly income of at least $2,000
  • Be a Permanent Resident or Canadian citizen

Documents Required To Apply

To apply for a Magical Cash Loan or a Magical Installment Loan, you’ll need to provide the following:

  • 90 days of bank statements that prove you have income deposits. Those deposits can be via e-transfers, cheques or direct deposit.

How To Apply For A Loan With Magical Credit

To apply for a short-term loan from Magical Credit, follow these simple steps:

Step 1: Find Out If You Qualify

Qualifying for a loan from Magical Credit is easy. All you need to do is meet the following criteria:

  • Have a fixed monthly income (including non-employment income)
  • Have your income deposited directly into your bank account
  • Meet the age and residency requirements

Step 2: Fill Out a Loan Application

Complete Magical Credit’s online loan application, which only takes a few minutes to do. In this step, you’ll be required to enter the following information:

  • Loan amount required 
  • Type of income you receive
  • Full name
  • Social insurance number (SIN)
  • Email address
  • Home address
  • Phone number
  • Birthdate
  • Whether you rent or own

Step 3: Wait For a Response

If required, Magical Credit will access additional information from TransUnion. You can expect a response on the decision of your loan application by the next business day.

Step 4: Get Funded

If you’re approved for a loan, Magical Credit will deposit the funds directly into your bank account for an installment loan. Magical cash loans will be funded via e-transfer or onto a debit card.

What We Like About Magical Credit

It’s important to consider every benefit that a lender can offer you before you hand over any of your personal or financial information. 

Here are a few other benefits that Magical Credit brings to the table:

  • Adjustable interest rates and repayment plan terms.
  • Loans are unsecured, so no collateral is necessary for approval.
  • Same-day approval and funds deposit is possible.
  • Their calculator gives an estimate of your potential loan costs.
  • $200 bonus cheque if you refer a friend or family member to their services.
  • Borrowers who have bad credit, low incomes, or are living off government benefits can qualify with the appropriate documentation.

What Does a Loan from Magical Credit Cost?

Another essential thing to remember about any loan is that there will be other costs included in the final price, such as your interest rate and loan origination fees. Prior to applying, it’s a good idea to get a loan estimate and factor your potential payments into your budget to see if you can afford them, along with all your other daily expenses. 

A Magical Installment loan will have an APR of 19.99% at minimum and at maximum 46.8%. On the other hand, a Magical Cash loan will cost you $15 per $100 borrowed.    

What Are the Pros and Cons of a Magical Credit Installment Loan? 

Depending on where you live and what your financial health looks like, Magical Credit could be the right option for you. Remember to compare the various benefits and drawbacks that accompany their services.

Pros 

  • Larger loan amounts than many subprime lenders will offer
  • Safer and less expensive than a payday loan
  • No collateral is required for approval
  • They won’t charge you for paying your loan off early
  • Timely payments will raise your credit score and look good on your credit report

Cons

  • Interest rates may be higher than traditional secured or unsecured loans
  • Loans terms cannot be extended or automatically renewed 
  • A penalty fee may apply for any NSF (non-sufficient funds) 
  • They aren’t available in Manitoba, Quebec, or Saskatchewan
  • Defaulted payments may lead to penalties and a credit score decrease

What Do Consumers Think Of Magical Credit?

Better Business Bureau (BBB)– 1/5 stars
– Not BBB accredited
Trustpilot4.1/5 stars
Google4.2/5 stars
Social Media Presence– Instagram: 100 followers
– Twitter: 160 followers
– LinkedIn: 147 followers

Is Magical Credit Safe? 

Yes, Magical Credit is safe thanks to its robust security and layered approach to keeping your personal information securely stored within its servers. No information is accessed by Magical Credit or disclosed to third parties indiscriminately unless specifically outlined in the company’s Disclosing Information section within the Privacy Policy.

Final Thoughts

Magical Credit is a unique type of lending company that makes a great option for Canadians in need of fast cash, including those who are unemployed and have bad credit. Loan amounts are much higher than what you’d get with a payday loan. If you need urgent cash and don’t have the time or the credentials to apply for a traditional loan, then a short-term loan from Magical Credit might be a great option.

Magical Credit FAQs

What is an unsecured loan?

Some lenders in Canada will give you the option of applying for a secured loan, which is where you offer up one of your assets as loan security, such as a vehicle or other valuable property known as collateral. Since this lessens the risk for the lender, they may approve you for more favourable loan conditions. Unfortunately, if you default on too many payments, your lender will be able to seize your collateral as compensation. Alternatively, you can apply for an unsecured loan, which is Magical Credit’s main product. Despite the average unsecured loan being more expensive and less adjustable, you won’t have to endanger any assets.

What qualifies as bad credit?

Bad credit can occur in many ways, such as defaulting on your credit products, carrying too much unpaid debt, going through a debt consolidation procedure, or falling victim to identity theft. You may also have bad credit when your credit report is first created. Generally speaking, a credit score of 300-600 qualifies as bad credit and is a sign that you have a higher likelihood of missing loan payments. This may cause problems when you apply for new credit products, especially large loans from prime lenders, where approval standards are tougher.

Is Employment Insurance (EI) accepted as a form of income?

Many alternative lenders, accept Employment Insurance (EI), CPP, CBB, maternity leave benefits, and other government subsidies as income. Keep in mind that Magical Credit accepts EI for Magical Cash. However, for their Magical Installment loans, they only accept mat-leave EI.

Does Magical Credit offer debt consolidation?

Though Magical Credit doesn’t have a product that is specifically designed for consolidating debt, you may apply for a personal loan that can provide you with the same results. Simply, apply for a personal loan large enough to cover your smaller debts. That way, you’ll be able to manage all your debts under one payment at a lower interest rate.

Services & Products

Magical Credit Offered Services

Magical Cash Loans

Loan Range
$100 - $1,450
Interest Rate
$15.00 per $100.00
Terms (Months)
14 to 63 days
Funding Time
  • 20 minutes +
Funding Method
  • E-transfer or Debit Card
Repayment Options
  • E-transfer or Debit Card
Eligibility
  • At least 18 years of age
  • $2,000 income
  • Permanent Resident or Canadian citizen
Requirements & Documents
  • 90 days of bank statements with income deposits
  • A valid form of government-issued I.D.
  • Proof of income

Magical Installment Loans

Loan Range
$1,500 - $20,000
Interest Rate
19.99% to 46.8%
Terms (Months)
12 - 60
Funding Time
  • Same day
Funding Method
  • Direct deposit
Repayment Options
  • Direct deposit
Eligibility
  • At least 18 years of age
  • $1,200 income
  • Permanent Resident or Canadian citizen
Requirements & Documents
  • 90 days of bank statements with income deposits
  • A valid form of government-issued I.D.
  • Proof of income

Awards

Magical Credit – Canadian FinTech & AI Awards
Canadian FinTech & AI Awards

For FinTech Company of the Year

Reviews

Reviews & Rating

Reviews From Experts

Sean Cooper avatar on Loans Canada

Magical Credit fills an important lending niche. They provide short-term financing regardless of any credit issues in the past. Magical Credit’s website is very user-friendly. It’s upfront about its loans terms and provide enough info for you to make an educated decision. It’s also quite active on social media, trying to educate you to get in better financial shape.

Application simplicity

Reputation

User experience

Information and transparency

Accessibility

Written by: Sean Cooper
Posted on June 19, 2019

See what others have to say about Magical Credit

Great staff very helpful.

Very quick easy and friendly I’m very pleased with the service.

Great Experience, Fast, easy and received the funds within 2 hours. Thanks Natalie!

I had the best experience with Magical Credit. The staff was great. Friendly & helpful. I applied & was approved same day. Fast & Efficien

Have you had any experience with this provider? Let others know!


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