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1 year ago

COVID-19 outbreak. How can Magical Credit help you?

by Vinicius Rocha


Nowadays the world can feel more divided than ever before with everyone being asked to quarantine in their homes until the COVID-19 pandemic has passed. On the other hand, we have never been more interconnected than in the present. Although we are not able to travel, see our friends and colleagues or even have our children play on the swings in the local park, we are all going through the same experience. An experience that will be recorded for the history books so that future generations may learn of the strife we endured. That, however, is in the future and now, we have to confront the present. It seems as if the COVID-19 pandemic has no end as world leaders remain baffled by the spread and experts’ theories on the end of the disease range from summertime to 2 years from now and from the possibility of several million being infected to half of the global population. In these uncertain times, the average Canadian inevitably feels the effects of the struggling global economy. Unfortunately for many, the virus has hit Canadians and the West for that matter more than any other region due to our close interconnectedness, high borrowing and spending rates as well as our heavy focus on the service sector.

In Dire Straits

Let’s debut the facts. Canada has an economy that is: 1) heavily dependent on exporting raw resources and importing refined ones, 2) heavily dependent on mass borrowing and consumer spending due to the mass availability of credit cards, loans, etc. and 3) our high dependence on the service industry. Let’s start off with the top one. The time we are in now can be classified as wartime. This is because only essential businesses are allowed to remain operating and many manufacturers have shifted production to badly-needed supplies such as ventilators by decree of the federal government. Other nations hit hard by the virus such as the U.S and China which constitute Canada's largest trading partners are equally less willing to ship their hardware over as global trade grinds to a halt leaving us to face multiple shortages.

Secondly, our highly consumer-based society requires those in the expansive middle class to maintain their spending since so many of our businesses rely on non-essential and even luxury purchases. This is why Canadians have become more and more amiable to the idea of piling on debt with the household debt burden (credit market debt to disposable income) ratio holding firm close to 176% in the 4th quarter of 2019. That figure represents that the average Canadian household holds $1.76 in debt to every $1 of disposable income. In order to uphold the society we have created; spending is the first and most important item on the menu. This represents the high volatility of our economic model in which even the slightest of shocks can send many families into havoc and not being able to pay off their numerous debts, resulting in bankruptcy. In fact, a recent study by the Investment Executive uncovered that 53% of Canadians live paycheque to paycheque with 49% of respondents having nothing saved up in case of an emergency. 35% of respondents said that they would use credit cards or take out additional loans to deal with a financial crisis. 

Finally, our arguable overreliance on the service industry. According to the Government of Canada, approximately 75% of Canadians are employed in the services industry, whether it be transportation, construction, education, banking, communications, retail, tourism and more. This sector also accounts for a whopping 78% of national GDP. Since our country is so heavily reliant on this sector and so many are employed in it, it’s no wonder that the fast-spreading nature of COVID-19 into our communities and the shutting-down of non-essential businesses have led to a collapse. 

Financial Uncertainty

A statement from the Prime Minister’s office on March 24 stated that half a million Canadians had applied for EI and one can only imagine the numbers today as cases reach the tens of thousands. This is the time when the government started issuing cash support for COVID-19 related financial damages. Individuals that found themselves unemployed or self-employed ones reporting a large decrease in revenue would receive $2000 per month for a 3-month period. While these measures stop people from going hungry on the street, it still doesn't bode well for those who need additional coronavirus loans living in detached housing or townhouses where $4000/month for the family will be insufficient. Insufficient because of the numerous expenses which although may be deferred for the time being, will never be forgiven and will eventually come back to haunt us. Many in such uncertain times who have already been close to financial ruin are now faced with a live or die scenario. A loan seems like the only option to get out of ruin. This is made even more dire by a report from Equifax Canada finding that in the past decade, the average credit scores dropped for all age groups except 18-25 year olds. Therefore, lenders are even more hesitant to hand out money than before.

The Solution

Sometimes when no other choice presents itself, loan sharks can be seen as the only reliable source of COVID loans in the short-term. They are essentially payday loans with huge interest rates that have to be paid back within a short time frame which if not paid can result in a snowball effect leaving you at the mercy of the sharks. In fact, these types of lenders were made illegal in several nations in the past only to be legalized once more and evolve into a refurbished version of their past selves. This is where Magical Credit comes in as the perfect alternative. It is the more long-term solution when going through the vast sea of Covid-19 loans, trying to find the best lifeline to hang onto. Magical Credit’s *requirements are simple: be employed for at least 6 months, you were able to pay off loans in the past and your income is deposited directly into your account. After that, you will be able to apply for 6 to 60-month loans with amounts ranging from $500 to $20,000. In terms of loans for paying bills, emergency money or unemployment loans, all of them require only minutes of your time to get approved. In short, it’s the safest and most effective way to get out of trouble in these turbulent times with one of the quickest approval processes. Its long time frame gives you the flexibility with your payments and a lower APR (annual percentage rate) that won’t leave you with a mountain of extra debt by the end. So try out Magical Credit today - bad credit personal loans are their middle name and their easy-to-get personal loans are readily available to help numerous Canadian families persevere through these uncertain times.

*for the whole list of requirements and qualifications, please, see


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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