Magical Credit Blog

Subscribe and get the latest news, promotions and updates from Magical Credit.

What Are the 3 Main Components of a Personal Loan?

If you find yourself in need of cash, there are always a number of sources you can tap into. You can ask your friends or family, or you can potentially put the expense on your credit card if you are confident in your ability to repay it soon – or, you can get a loan from the bank.

Read More

What Are Some Common Sources of Personal Loans?

Personal loans refer to relatively quick sources of cash that are offered to individuals (rather than small businesses or large enterprises). Most personal loans are structured in a way where you gain a lump sum of cash upfront (called the principal) which is then paid back over time in installments with interest. Personal loans can be offered for a specific purpose (such as debt consolidation) or can be used at the borrower’s discretion.

There are many ways you can obtain a personal loan. In this article, we look at some of the most common options that borrowers have when in need of capital.

Read More

What to Do If the Bank Rejects Your Loan Application

The personal loan application process can be nerve-wracking. There are many factors and variables that a lender considers before making an approval decision. However, there are times when the lender may decide to reject a loan application, as well. While that can be highly discouraging or disheartening, it doesn’t necessarily mean that it’s the end of the road for your personal loan ambitions.

In this article, we go over some of the main reasons that banks choose to reject an applicant, and some of the proactive actions you can take to avoid this fate.

Read More

5 Factors Keeping You from Getting a Personal Loan

Personal loans are debt resolution solutions offered by lenders to individual consumers. Unlike a mortgage or auto loan, these loans do not have to be used solely for a specific, defined purpose. Once you are approved, you have discretion over how you utilize the funds. Most personal loans are provided as a lump sum amount that you pay back in installments over a fixed loan term. However, they can also be in the form of revolving credit. A revolving loan enables the customer to borrow money up to a certain fixed limit. The principal can be repaid back and then borrowed again up to the limit, and interest is only paid on the amount borrowed.

Read More

What Are the Biggest Major Personal Loan Risks?

Although personal loans come in many shapes and sizes, the general definition of a personal loan is a credit loan offered by a lender to an individual borrower. Most personal loans are provided as a lump sum and the principal has to be paid back with interest over time in regular intervals (usually monthly or biweekly). Some personal loans are also offered as revolving credit, wherein the customer has a maximum credit limit and can borrow, repay, and borrow again up to that maximum amount.

Read More

How to Earn Money After Retirement

If you are currently on the cusp of retirement, or are contemplating it within the next few years, it is only natural to assess your finances and start planning ahead for life after work. In Canada, there is no official retirement age. However, the average retiree is aged around 65. To qualify for a pension from the Canada Pension Plan (CPP), you need to be aged at least 60 and have made a minimum of one valid contribution while you were working.

Read More

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.