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Find A LenderMagical 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:
- Baby Bonus
- Workers Comp
- Maternity leave
- Pensions
- Unemployment Insurance (only for Magical Cash loans)
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 $1,500 with terms from 14 to 62 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 Loans | Magical Cash Loans | |
| Loan Amounts | $1,500 – $20,000 | $100 – $1,500 |
| Interest Rates | 19.99% – 35% APR | $14 per $100 borrowed |
| Approval & Funding Time | Same day EFT deposit | Around 20 minutes |
| Availability | Across Canada (excluding SK, MB, QC) | Ontario and British Columbia |
| Loan Terms | 12 – 60 months | 14 to 62 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 35%. On the other hand, a Magical Cash loan will cost you $14 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 |
| Trustpilot | 4.1/5 stars |
| 4.2/5 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.
