Magical Credit Blog

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How to Properly Dispute an Error in Your Credit Report

A credit report is a summary of all your credit activity. Your creditors (i.e., people to whom you owe money, such as banks or other lenders) report your outstanding credit balances and repayment histories to credit reporting agencies, such as Equifax or TransUnion; these credit agencies then use this information to build your credit report and assign you a credit score ranging from 300 to 900.

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Why are Payday Loans a Trap?

What is a payday loan? A payday loan is a short-term, high-interest loan designed to cover a borrower’s immediate cash requirements if they do not have healthy credit, funds on hand, or access to other sources of cash such as a personal line of credit. Read More

How to Fight Credit Card Debt

A credit card is a useful tool for paying for an expense upfront and giving you some time (usually 30 days) to repay it to the bank with no interest charged. However, once a borrower goes beyond the time period allotted, the amount they owe starts accumulating interest – often at steep rates of up to 23%. This is called credit card debt. Left unchecked, credit card debt can lead to several adverse financial consequences.

Luckily, there are several ways to manage credit card debt effectively and responsibly that we will discuss through this article. We will also cover some steps that borrowers can take to ensure that they do not fall into credit card debt in the first place.

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Black Friday Deals: How to Save Money

It’s approaching that time of year when the Black Friday fever grips the nation. As one the most anticipated days of the year for shoppers across the country, Black Friday is a prelude to the holiday season where shoppers get a head start on Christmas shopping for gifts, and other consumer items they need for their households. In Canada alone, $4.6 billion is expected to be spent in 2021, with the Retail Council of Canada’s survey of 2500 Canadians finding that average spend is expected to be $792 per person! These numbers not only illustrate the importance of the day to retailers, but also represent potential financial risks to consumers in the absence of sound financial habits. In this article, we therefore discuss how you can buy the Black Friday items you need without taking on unsustainable financial burdens.

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What is an APR and how does it work?

If you have ever applied for a loan, you are probably familiar with the term Annual Percentage Rate (APR). This number is expressed as a percentage of the total loan principal, and is the total interest charge that a loan incurs on an annualized basis. Compound interest is, however, not taken into account when discussing APR. The APR can be used to compare between different loans or credit products as it offers a standardized view of the total cost that a borrower can expect to pay over a given year.

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Our loans are considered short-term loans and have a 12-60 month term with a fixed interest rate of 3.9% per month.

Example: $1,500 borrowed for one year at 3.9% per month. Monthly payments are $199.05. Total payback with interest and fee of $194.00 is $2,388.54.

NOTE: 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.