Magical Credit Blog

A credit report is a document that summarizes your credit history with borrowed funds (such as loans), bill payments, and other forms of credit. Your credit report begins from the first time you borrow money or apply for facilities that grant you access to a line of credit, such as a credit card. Lenders then send this information and subsequent data on your payments to institutions known as credit agencies, which use that information to create and update your credit report, and assign you a credit score. In Canada, Equifax and TransUnion are the two major credit agencies.

What Is an Emergency Fund, and How Does It Work? An emergency fund is a backup plan for your finances in case you ever experience setbacks that cost a sizable sum of money, or hinder your ability to earn more in the near term. Read More

A personal loan is a loan provided by a lender to a borrower to help finance a large purchase or project. Borrowers obtain personal loans for two primary reasons:

1. They do not have the capital to fully supply their own funds for their intended use.

2. Even if they do have the funds to pay for it entirely, they may have other opportunities they want to pursue and allocate their capital towards.

If you’ve ever gotten a loan declined in the past, it is easy to get stuck wondering where you went wrong. However, when a lender declines your loan, it is usually not a personal decision. Each institution has defined parameters on the types of borrowers they can and cannot lend to. If you as a borrower fall even slightly outside of these parameters, the institution may opt to play safe and decline the application.

What Does It Mean to Be Self-Employed? A self-employed person is someone who does not work for an external employer that pays them a fixed salary or wage. Read More

Living Wages in Canada: A Snapshot of 2022 With inflation being such a hot topic, discussions around the living wage have grown increasingly louder. Read More

If you have regularly created budgets for your monthly expenses in the past, chances are that you have needed to add some large expenses from time to time that are over and above your regular expenses such as your rent, food, transportation costs, etc. Maybe your car broke down and needed urgent repairs to get back on the road. Or maybe you are planning for your upcoming wedding. Whatever the case may be, these expenses can often compromise your best-laid plans, and prevent you from meeting your savings and investment goals. However, it doesn’t need to end that way!