Get Approved for a Consumer Proposal Loan in Ontario

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Consumer Proposal Loans in Ontario

You’ve finally completed your consumer proposal, so it’s time to start building your credit.

You’re faced with 2 options:

1) You can either pay off your consumer proposal over the span of 5 years (or whatever time you’ve arranged with you Licensed Insolvency Trustee), and worry about how to rebuild your credit then.

OR

2) You can get a head start on rebuilding your credit by taking out a consumer proposal loan, and start rebuilding your r7 credit rating ASAP.

The hang-up with your second option is that at this point of the consumer proposal process, most financial institutions will look at your credit score and turn you away immediately. You’d be stuck in a never-ending cycle of needing a loan to rebuild credit, but having nobody to offer you one.

Well, that’s not entirely true. Magical Credit offers low-income, bad credit consumer proposal loans in Ontario so that you can start building your credit, and rebuilding your life.

Just fill out our online application and, in as little as 5 minutes, you can be back on your way to a better credit score!

Need a consumer proposal loan in Ontario, but aren’t sure you can keep up with the loan repayment terms? Calculate your monthly loan payment schedule with our short-term, personal loan calculator!

I want to borrow:

< $2000 >
$500
Min
$10,000
Max

Is a Consumer Proposal Loan a Good Idea?

A consumer proposal loan is a great way to start repaying loans immediately, so you can show financial institutions you’re reliable for loans in the future.

But why not just wait the 5 years until you’ve paid back your consumer proposal before you start building your credit?

  • You want to own a home: If you’re ever going to own a home, you’re going to need a mortgage. And seeing as most financial institutions will want nothing to do with people with bad credit, a home is a non-starter unless you can improve your credit score. A consumer proposal loan can get you into your dream home sooner!
  • You might need a car: A lot can happen in 5 years. Let’s say you get offered a great job which requires you to own a car to get to work. If you want to finance a car, but you still have a poor credit score, not being able to get the car can mean not being able to get the job.
  • Cheaper insurance rates: As part of the algorithm to figure out your premium, insurance companies will consider your credit score. So 5 extra years of bad credit can mean 5 extra years of higher than normal premiums.
  • Rebuilding credit: If you want the freedom to take out a loan in the future, you’ll need a good credit score. Magical Credit’s consumer proposal loans can help improve your credit score to give you financial freedom and peace of mind.

Consumer Proposal Loans FAQ

What is creditworthiness?

Creditworthiness is a way for financial institutions to determine the likelihood of you paying back your loans.

I have an r7 credit score. How does creditworthiness affect the likelihood of taking out a consumer proposal loan with Magical Credit?

Magical Credit offers low-income loans, and loans to those with poor credit. We don’t only focus on credit score, but we focus on your entire credit history. We make it easier for you to take out a loan, so you can start rebuilding your credit ASAP.

In which cases should I take out a consumer proposal Loan?

Consumer proposal loans aren’t for everybody. But it can be a good idea to get a jump on rebuilding your credit rating if you would like the financial freedom a good credit score enables.

At this point in the consumer proposal process, what’s the best way to arrange my payments to rebuild my credit?

If you pay back the loans quickly, and in payments more than the minimum amount, it’s reflected on your credit history. Therefore, financial institutions will see that you are reliable and a low-risk prospect for a potential loan.

How much income do I need to be eligible for a consumer proposal loan?

Magical Credit requires that you have an income of at least $600 monthly. We don’t differentiate between whether this income is through an employer, or through government grants or subsidies.

How much money can I borrow for a Consumer Proposal loan?

Magical Credit can provide anywhere from $500 – $10,000 in consumer proposal loans.

Which pieces of ID are valid for my application?
  • 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
If I have previously defaulted on a payday loan, can I still get a Consumer Proposal loan?

No. Magical Credit has a zero-tolerance policy for unpaid loans!


Need an emergency loan, but aren’t sure you can keep up with the loan repayment terms? Calculate your monthly loan payment schedule with our short-term, personal loan calculator!

Our loans are considered short-term loans and have up to a 12-24 month term with an interest rate of 3.9% per month.
Loan Example
Term
1 Year
APR
56.50%
Amount
$2,000.00
Fees
$194.00
Interest Rate (46.8%)
$936.00
Total Cost of Borrowing
$1,130.00
Total Due End of Term
$3,130.00
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: (APR 23% min - 59.7% max) Loan amortization is between 12-24 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.