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Frequently Asked Questions

If your question isn’t answered below, please feel free to contact us online or at 1-877-213-2088. We’re happy to answer any questions about our low-income loans, bad credit loans, or our application process.

General

How do I apply for a Magical Credit loan?

Simply fill out our Application. We'll follow up with you, informing you about the status of your application.

What is your interest rate?

Our Term loans have an interest rate of 3.9% per month.

Loan Example (APR 19.99% min - 46.8% max)
Term                                1 Year
Amount                            $1,500.00
Fees                                 $194.00
Interest Rate (46.8%)       $702.00
Total Cost of Borrowing    $896.00
Total Due End of Term      $2,396.00
NOTE: You can pay off your loan at any time with no penalty.
You will only pay interest up to the date you borrow it.

Terms and Conditions: Loan amortization is between 12-60 months. 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 with impact your future credit with Magical Credit Inc. and other credit lenders. All delinquencies will be reported to the Credit Bureau.

If I get approved for a loan, how long does it take to receive payment?

After your application is approved, we will send payment as soon as possible, typically within a business day.

I have a history of bad credit. Should I still apply?

Yes! Magical Credit specializes in offering bad credit loans to clients with low income or government income.

What kinds of income does Magical Credit accept?

We accept employment income and all types of government subsidies (i.e. EI, CPP, baby bonuses), as well as private income such as pensions or maternity benefits. As long as your income is directly deposited into your bank account on a monthly basis, you can qualify for a Magical Credit loan. For a more complete list of income sources we accept, check our who qualifies page.

Is Magical Credit associated with a major bank or financial institution?

No. Magical Credit is a private lender for bad credit and low-income households. We are not associated with any banks or financial institutions.

I don't have a bank account. Can I apply?

Magical Credit is unable to offer loans to clients that do not have a valid Canadian bank account.

Do you only offer loans in Canada?

Yes. At this time Magical Credit only offers loans in Canada.

Valid Forms of ID?

• Valid Canadian Driver’s License
• Valid Canadian passport
• Certificate of Canadian Citizenship
• Certificate of Indian Status
• Canadian Permanent Residency Card
• Old age security Card
• Photo Health Card and Birth Certificate or Social Insurance Card
• BYID Card (LCBO) and Birth Certificate or Social Insurance Card

Do I have to fax Magical Credit documentation?

Magical Credit does give you the option to upload your documents with your application or during the follow up process.

How do I determine my monthly loan payment timetable?

You can quickly calculate your average monthly payment schedule using our short-term, personal loan calculator. The monthly sum is based on the value of your loan, and the length of the repayment period.

How long does it take for Magical Credit to process my loan application?

We process loans as quickly as possible. You should hear back from us within 24 hours of submitting your application.

How much money do you loan? Is there a maximum loan amount?

Our loans start at $500.00 - $20,000. The amount you receive depends on your income.

Is it possible to extend my term if I don't have the funds?

Sorry, Magical Credit is unable to offer extended terms.

I have defaulted on a payday loan before. Can I still apply?

If you've defaulted on a payday loan in the past, you will not be able to qualify for a loan from Magical Credit. We check your credit history upon application, and have zero tolerance for previously unpaid payday loans.

Does my income have to be over a certain amount to qualify?

Your income will determine the amount of money Magical Credit is able to loan you. However, Magical Credit specializes in low-income loans, so a high-income is not necessary to qualify.

If I've recently filed for bankruptcy, can I qualify for a loan?

No. Unfortunately you cannot qualify for a loan through Magical Credit unless your bankruptcy is discharged.

Does my income have to be directly deposited into my bank account to qualify?

Yes. Unfortunately, Magical Credit cannot offer you a loan if your income is not directly deposited into your bank account.

Does Magical Credit report to the Credit Bureau?

Yes, we report all our information to the credit bureau. This helps our clients build credit history.

Instant Verification

I've never heard of this before?

Instant Verification is a new service that allows us to instantly verify your identity and view an electronic and secure copy of your bank statement allowing us to make a fast and accurate decision on your loan. It replaces outdated methods such as faxing your bank statement or making time consuming calls to your bank. It provides you speed, privacy, security and convenience.

I'd rather scan / fax in my information.

Instant Verification provides tremendous advantages over traditional methods of supplying this information. Not only does it deliver enhanced privacy, security, convenience and speed but because of its accuracy and completeness you may qualify for a loan you may not normally qualify.

I don't like giving my personal information online, how do I know if this safe?

I understand your concern. This system was designed specifically to enhance your privacy and security. It operates at bank level security using the same 128‐bit encryption as your bank. Username and passwords are never displayed, view or stored. This is the safest, fastest, and most convenient way for you to submit your information for loan approval.

How do I know this is not a scam for my personal information?

This system was designed specially to enhance your privacy and security. It operates at bank level security using the same 128‐bit encryption as your financial institution. Additionally, the website is monitored and verified by Verisign, the highest level of online site security.

What will you do with my information?

Your user id and password are securely transferred to your financial institution in order to verify your identity as well as retrieve a 90 day "read‐ only" copy of your bank statement. The information is viewed by us in order to make a fast and accurate decision on your loan.

Will you see my password information?

Never. Your ID and password are never displayed or viewed. Your credentials are transferred to your financial institution at bank level security. If your credentials are correct, we will then receive a "read‐only" copy of your bank statement allowing us to make a fast and accurate decision on your loan.

Are you going to be logging into my bank?

Absolutely not. We never see your user id and password nor do we ever have the option to "login" to your account. This system allows you to securely and privately submit an online read only copy of your bank statement. This information is necessary in order to approve your loan request and is the most secure technology on the market today.

Why do I have to do this?

We use this system because it's the safest & most convenient way for our customers to verify their banking information. This information is a necessary step in approving your loan request. It provides many benefits over old fashioned methods such as security, privacy, convenience, and speed.

Bank Statements

We need your past 90 days' bank statement. Your bank statements must have your name and last four digits of your account number on it.

Employment Loans

How long do I have to pay back my loan?

Magical Credit offers short-term loans, and have a choice of 6-60 months.

Provinces we do not lend to:

Manitoba, Quebec and Saskatchewan

What will I need to send Magical credit as proof of my income?

Magical Credit will require 2 recent paystubs, 1 recent bill to your current address.

Government Subsidy Loans

How long do I have to pay back my loan?

Magical Credit offers short-term loans, and have a choice of 6-60 months.

Provinces we do not lend to:

Manitoba, Quebec and Saskatchewan

What will I need to send Magical credit as proof of my income?

Magical Credit will require: one of the following

Pension/CPP
• Most recent T-4
• Increase Letter you received in December/January from the Canadian Revenue Agency regarding your CPP

Private Pension
• Letter from your insurance or private pension stating term, rate and contact information

WSIB
• Statement you received when you first registered (Date, Name, Address, Term, Amount)

EI
• Summary of unemployment Terms (start and end) from the Canadian Revenue Agency

CCTB
• Most recent Notice of Assessment from the Canadian Revenue Agency

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.

What’s the benefit of personal loans over payday loans?

Payday loan companies tend to charge extortionate interest fees, the average rate being as much as $30 for every $100 borrowed, which can be over 500% APR! At Magical Credit, we provide you with a low-interest personal loan with a fixed monthly interest rate of just 3.9%.

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 $600 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 $600, 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 $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 $600 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.

Other Frequently Asked Questions

What if I don’t have a Magical Credit loan account?

Sorry, only current Magical Credit customers can take advantage of our referral program.

Our loans are considered short-term loans and have up to a 6-60 month term with an interest rate of 3.9% per month. 

Example: $1,500 borrowed for one year at 3.9% per month. Monthly payments are $199.67. Total payback with interest and fee of $194.00 is $2,396.00.

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.