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Bad Credit Personal Loans in Canada

No Credit? No Worries: Why Personal Loans for Bad Credit Fit Your Financial Needs

Have bills to pay? Must-have expenses that simply can’t wait? Even if you’re usually on top of things, a few unexpected costs can mean a slippery slope into unpaid bills and bad credit. A credit card can be a backup, but what if you don’t have one? A personal loan perhaps? But what if you’ve made budgeting mistakes in the past and already have bad credit? We know it can be a vicious circle and we’re here to help.

Magical Credit specializes in bad credit personal loans to help with consumer debt. Here are some of the benefits of opting for a Magical Credit unsecured personal loan:

  • A better chance of approval. We offer personal loans for bad credit households or customers with low income or non-traditional income sources.
  • Fast approval. An unsecured bad credit personal loans allows for same-day approval and next-day funding.
  • Low, fixed interest rates. Our loans will cost you less than payday loans. Plus, you won’t find any nasty surprise charges and fees like the ones that credit card companies throw at you.
  • Flexible terms and payment options. Find the optimal term and payment option to fit your needs. Want to pay early? You’ll only pay interest on the time borrowed. 

Even if your credit is poor, you can still qualify. To apply for a Magical Credit loan, simply fill out our online form. To help speed up the qualifying process, this form only asks for essential information, and you can expect a response within a few hours and latest, one business day. You can opt to upload your bank statement during the application process so that no more paperwork is needed upon approval. It’s really that simple!

I want to borrow:


Top Uses for Bad Credit Personal Loans

Must-have expenses:Need to fix your car or replace a home appliance? Maybe you have urgent medical bills or need to pay upfront for rent or childcare. Some big-ticket items simply can’t be avoided, but consumer loans from Magical Credit can make personal expenses far more manageable.

Life events: Want to avoid a low-budget wedding or need a boost after having a baby? Perhaps you have a child heading to college or need to cover travel expenses for an important family event. Life’s big milestones don’t come around often, but they can be very tough on the wallet. Lower the stress and enjoy making memories with a Magical Credit bad credit loan.

Time-sensitive opportunities: Is low credit holding you back from following your entrepreneurial dreams? Personal lending can help new businesses too. A Magical Credit loan can provide you with that initial cash investment to get you up and running.

Can I Get Personal Loans for Bad Credit In My Province?

We’re a Toronto based company but accept applications from across Canada. If you’re in one of the following provinces and need help with personal loans for bad credit, apply today!

  • Ontario
  • Alberta
  • British Columbia
  • New Brunswick
  • Newfoundland
  • Northwest Territories
  • Nova Scotia
  • Nunavut
  • Prince Edward Island
  • Yukon

Bad Credit Personal Loan FAQs

I’m sending a lot of personal information in my application. How do I know I can trust your site?

Our website and application system are designed with a focus on security and privacy. Similar to banks, we utilize 128-bit encryption to secure the data you submit and keep your information private. VeriSign provides us with the highest level of site security, monitoring and verifying our website. You can be assured you’re applying for a completely private loan when you submit an application to Magical Credit.

Is guaranteed approval for bad credit personal loans a real possibility?

The simple answer is no. Although some lending companies claim to offer guaranteed approval for bad credit personal loans, there’s a good chance many of these are actually scams. If a legitimate company is making these types of claims, then there are likely caveats (such as a minimum monthly income) in the fine print. 

At Magical Credit, our customers’ best interests and financial wellbeing are top priorities, which means not everyone will be accepted for one of our loans.

What does an unsecured bad credit loan involve?

A secured loan is one that requires some type of collateral, such as a house or car. These types of loans are very difficult to qualify for if you have poor credit. Plus, applications for secured loans can involve lengthy processing times, so funds won’t get to you in a timely manner. 

In contrast, an unsecured loan doesn’t need to be supported by any type of collateral. There are still qualification requirements, but even people with low credit scores can qualify for these loans. Processing times for Magical Credit unsecured bad credit loans are fast, so you can have access to the money as soon you need it.

If I have multiple debts to pay off, does Magical Credit offer debt consolidation services through personal loans?

We don’t deal with direct debt consolidation, but it can still be achieved with a Magical Credit loan. Simply apply for a personal loan that is large enough to cover your multiple smaller debts, and enjoy the benefits of low, fixed interest rates and a single payment.

Can I still apply for a personal loan if I’ve only been employed for eight months?

Yes, Magical Credit will consider your application if you’ve been employed for a period of three to six months depending on the Province.

Can I apply for a loan even if I have bad credit?

Yes, bad credit personal loans are our area of specialty. While many lenders will write off applicants with bad credit, we base our decision on multiple factors. Even if you have a low credit score, if you receive $1,200 or more per month, we will consider your application.

Will I qualify for a loan even if I’m currently unemployed?

We understand that people are not working for a variety of reasons and that you might have other sources of income. As long as you have a monthly income of at least $1,200, we can consider you for a loan. Eligible income sources include, but are not limited to, government subsidies and credits (such as CPP, EI, or baby bonuses), pensions, and maternity benefits. 

You can find a more comprehensive list of acceptable income types on our Who Qualifies? page.

How much money can I borrow though a Magical Credit personal loan?

Magical Credit lends amounts between $1,500 and $20,000.

How much do I need to be earning to be accepted for a bad credit loan?

You can be considered for one of our bad credit loans if you receive $1,200 or more per month.

What will I need to apply online?

We do have minimum requirements you’ll need to meet to submit an application for a loan for bad credit. You must:

  • Be 18 years or older
  • Have a valid bank account
  • Be able to show proof of income
  • Present a valid ID
  • Have a SIN (excluding a temporary SIN)

Will I be required to fax any documents?

No, you don’t need access to a fax machine to apply for a Magical Credit loan. The whole application process is quick and convenient and can be completed entirely online through our website.

How much do you charge in interest on personal loans?

We offer a fixed monthly interest rate of just 3.9%.

How will my funds be transferred?

Receiving funds is quick and simple. We request banking details during the application process, so as soon as we approve your loan, the funds will be directly deposited into your bank account, with no need for any additional paperwork.

Am I eligible for a loan if I’ve defaulted on a payday loan in the past?

Magical Credit has a very low tolerance in the case of unpaid payday loans. We have a policy to reject applications for consumer loans on the basis that the applicant has defaulted on a payday loan in the past.

If I’m not approved for the loan I’ve applied for, will I be offered a different loan?

While we reject some loan applications, we want to be able to offer you the credit you deserve. If you don’t qualify for a particular personal loan, we will instead offer you a loan that you are eligible for and let you know what alternatives you have.

Once I’ve applied online, how long will it be before I’m contacted?

Once you’ve submitted your online application for a Magical Credit loan, you can expect to hear from us within less than 24 hours.

What is a soft credit check?

Before making approval decisions, many lenders conduct a soft credit check. A soft credit check, also known as a soft credit pull or soft credit inquiry, is a type of credit inquiry that does not impact an individual's credit score. Depending on the credit bureau, soft inquiries may or may not be documented in a person's credit report, but they will not be visible to lenders. 

Unlike a hard inquiry, a soft pull can occur without the borrower's consent, such as in the case of "preapproved" credit cards and loan offers. When you apply for a Magical Credit loan, for instance, we do a soft inquiry to assess your eligibility.

What is a hard credit check?

A hard credit check refers to a credit check that is documented on your credit report and can have an impact on your credit score for a duration of up to two years. If multiple hard inquiries are made within a short timeframe, it can signal to lenders that you are actively seeking additional debt, potentially increasing the perceived risk of your application.

If, after the soft pull, we decide you're eligible for a Magical Credit loan, a hard inquiry will be conducted to assess final approval.


Magical Installment Loans: We offer installment loans in the amount of $1,500- $20,000 that have a 12-60 month term with an APR 19.99% min - 46.8% max. On $1,500 borrowed for a 1 year term at 3.9% per month, the total cost of borrowing including a $194 fee is $896.00. The total amount to be paid back with interest and fee is $2,396.00. AB License #349796 and BC License #83626

NOTE: Our installment loans are open, so you can pay off your loan at any time with no penalty. You will only pay interest up to the date you pay it off.

Magical Cash Loans - Ontario, British Columbia, Northwest Territories, Nunavut, and Yukon Residents only: We offer Magical Cash Loans in the amount of $100-$1,500.00. The cost of borrowing is $15.00 per $100.00 for each $100.00 borrowed. On a $1,000.00 loan for 14 days, the cost of borrowing is $150.00. The total to payback is $1,150.00 which is an annual percentage rate of 391.07%. ON License #4741412. BC License#85919.

The Loan must be paid in full by the end of term, no extensions or exceptions, no automatic renewals. Failure to pay your debt on time will impact your future credit with Magical Credit Inc. and other credit lenders. All delinquencies will be reported to the Credit Bureaus.

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