Frequently Asked Questions

If your question isn’t answered below, please feel free to contact us online or at 1-855-639-6888. We’re happy to answer any questions about our low-income loans, bad credit loans, or our application process.


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.

I’m approved! How quickly will I receive my funds?

You can expect to see your funds within a few hours of your finalized loan approval!

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 almost all types of government subsidies (i.e. EI Mat Leave, baby bonuses, WSIB), 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

Service Canada is now issuing SINs in paper format (confirmation of SIN letter). Production of the plastic SIN card has stopped, however, SIN cards that are not expired and are currently in circulation can still be used.

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.

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.

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 $1,500.00 - $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.

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.

What banks can be verified?

  • BMO
  • CIBC
  • RBC
  • Scotia
  • TD
  • ATB
  • CoastCapital
  • Desjardins
  • EQBank
  • FlinksCapital
  • HSBC
  • Laurentienne
  • Meridian
  • National
  • Simplii
  • Tangerine
  • Vancity

Employment Loans

How long do I have to pay back my loan?

Magical Credit offers short-term loans, and has a choice of 12-60 months.

Provinces we do not lend to:

Manitoba, Quebec, Saskatchewan and Newfoundland and Labrador

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 has a choice of 12-60 months.

Provinces we do not lend to:

Manitoba, Quebec, Saskatchewan and Newfoundland and Labrador

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

Magical Credit will require: one of the following

• 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

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

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

• 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.

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 $1,200 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 $1,200, 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 $1,500 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 $1,200 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.

What is a soft credit check?

Before making approval decisions, many lenders conduct a soft credit check. A soft credit check, also known as a soft credit pull or soft credit inquiry, is a type of credit inquiry that does not impact an individual's credit score. Depending on the credit bureau, soft inquiries may or may not be documented in a person's credit report, but they will not be visible to lenders. 

Unlike a hard inquiry, a soft pull can occur without the borrower's consent, such as in the case of "preapproved" credit cards and loan offers. When you apply for a Magical Credit loan, for instance, we do a soft inquiry to assess your eligibility.

What is a hard credit check?

A hard credit check refers to a credit check that is documented on your credit report and can have an impact on your credit score for a duration of up to two years. If multiple hard inquiries are made within a short timeframe, it can signal to lenders that you are actively seeking additional debt, potentially increasing the perceived risk of your application.

If, after the soft pull, we decide you're eligible for a Magical Credit loan, a hard inquiry will be conducted to assess final approval.

Other Frequently Asked Questions

Can I refer a friend if I don’t have a Magical Credit loan account?

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

Installment Personal Loans in Ontario - Frequently Asked Questions

Unsecured Personal Loans FAQ

What’s the difference between an unsecured personal loan and a secured personal loan?

The word “secured” in the term “secured personal loan” refers to a valuable asset (such as your home) that you offer to the lender as a guarantee that you will pay your loan off successfully. If you fail to pay your loan off, the lender has the right to repossess the asset(s) you’ve put up. For this reason, a secured loan is seen as less of a risk for the lender because whatever happens they’ll be able to recoup their investment. Interest rates on secured loans are therefore usually much lower than on unsecured loans. 

Unsecured loans, by contrast, are based entirely on your personal credit. You are essentially asking your lender to provide you with financing because your credit history is proof enough that you are trustworthy. Because the risk in this scenario is shifted over to the lender, they will demand a higher interest to make the arrangement worth their while.

Is an unsecured personal loan right for me?

Unsecured loans mean it’s less likely you’ll lose a significant asset if you run into trouble with repayment (although you should always enter into a loan agreement with an honest belief that you’ll be able to pay it back!). Elsewhere on this page we listed some reasons why an unsecured personal loan might be right for you, including debt consolidation, business expenses or unexpected emergencies. Ultimately, you should always make a thorough accounting of your own situation before you apply for any type of financing.

What credit score do you need for an unsecured personal loan?

Because you are not putting up any collateral, we have to look at alternative factors to see whether you are a viable borrower. That’s why, in addition to the information you provide on your application, we reach out to a third-party agency (Equifax) to learn about your credit score and credit history. We tend to deny borrowers who have failed to pay off payday loans in the past, but compared to banks and other merchants we are generally much more flexible about the customers we will offer loans to. 

There is no specific credit score that we are looking for in an applicant, but it is helpful if we’re able to see evidence that you are keeping up with your current financial obligations, such as, for example, payments on previous loans.

Can I get an unsecured loan with bad credit?

Magical Credit is a fully-accredited lender, and although we specialize in bad credit loans and helping customers that other merchants may not, we cannot guarantee any prospective borrower will receive an unsecured personal loan from us.

While it is quick and easy to complete, our application and vetting process is rigorous and we choose whom we extend offers to carefully. With that said, it is absolutely possible for you to get an unsecured personal loan from us even if you have bad credit. We review a number of alternative factors that many banks and payday loan vendors do not when we make our determination as to whether or not we consider you a safe candidate.

Rest assured, if you are offered a loan, we are confident in your ability to repay it.

What are the requirements needed to qualify for an unsecured loan?

At Magical Credit, we don’t enjoy processing endless reams of applications and ex-forests of supporting documentation any more than you enjoy filling them out and mailing them in. That’s why we keep our list of requirements trimmed down to the bare essentials: 

  • Do you have a fixed monthly income? (Click here to learn more about what qualifies as ‘income’ for application purposes)
  • Is the income mentioned above directly deposited into your bank account?
  • If you’ve taken out a payday loan or loans in the past, have you successfully paid them off?

 And that’s just about all she wrote!

How much money can I borrow?

We offer unsecured loans from $1,500 to $20,000.

Can I pay off my unsecured personal loan early?

Of course! While we offer repayment periods from 12 to 60 months, you can always pay off the balance of your loan at any time. You will only be liable for the interest up to the date you pay it off, and you will not be penalized in any way.

How fast will I get my money?

We now offer Same Day funding! We request your banking information as part of our application process, so as soon as your application has been approved and signed off on, we transfer the agreed-upon funds directly into your account. Short version? You’ll get your cash same day! 

Note: Your bank may place a hold on these funds for a few days; policies vary, so you should contact your bank for more information if you experience a significant delay.


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.