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Five minutes to an unsecured personal loan? That’s our kinda magic

Getting an unsecured personal loan in Canada is easy at Magical Credit. With our simple online application, you’re on your way to peace of mind in no time at all.

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Unsecured Personal Loans Canada

You are the Collateral: Why we offer Canadian borrowers unsecured loans (and why they might be a great choice for you!)

Pulling together enough collateral to secure a personal loan can be an onerous task, whether you’re a first-time borrower with few assets, or someone with a lengthy credit history. Oftentimes banks and other traditional private lenders will require borrowers put up their homes, cars or other valuables as a guarantee that they will be able to make good on their debts. Without this kind of collateral, you may be subject to higher interest rates, and if you also have bad credit, they may choose not to grant you a loan at all!

An unsecured personal loan reduces your risk of having your assets repossessed, and centres the application process on your own credit history and trustworthiness.

In a very real sense, you are your own collateral.

Why Magical Credit?

We are strong believers in the importance of making financing accessible to Canadian consumers with imperfect credit. Whether you need cash in hand to meet a one-time business expense that will help you increase your regular earnings and build working capital, or you’re looking to consolidate your debts into one tidy monthly payment, a short-term cash loan can be the difference-maker. 

Hundreds of Canadian consumers like you come to us for their unsecured loan needs because:

  • We have the simplest, most-efficient application process out there - it’s completely online and takes less than five minutes to complete.
  • We get you your cash quickly. You’ll hear whether you’ve been approved within 24 hours, and we deposit your cash directly into your account.
  • We make managing your repayments simple! Using the calculator on this page, you can figure out your monthly payments in advance, and once you’ve been approved, we offer clear and simple tools to help you stay on top of your obligations.
  • We’re better than payday loans! Although your unsecured personal loan will come with a higher interest rate than a secured loan, our rates are still favourable compared to payday lenders and our short repayment terms limit how much interest you ultimately pay.

Check out the interactive repayment calculator below, and continue reading to learn about how Canadians like you have put their loans to work!


I want to borrow:

$500
$20,000

Top Uses for Unsecured Personal Loans

What you do with your unsecured personal loan is ultimately up to you, but we wanted to share some reasons we’ve heard from customers for taking on loans with us! 

Debt Consolidation: The average Canadian household carries a debt loan of 170% of their disposable income. Between mortgages, lines of credit, student loans, car payments and credit cards, many of us wind up paying out a lot of money every month to a lot of different sources. Each of these debt streams comes with its own interest rates and repayment schedules, which can turn into a rat’s nest when you sit down each month to figure out your obligations. Debt consolidation is the process of reducing the number of different payments you have to make each month. One way to do this is by taking out a new personal unsecured loan and using it to completely pay off two or more of your previous debts. This way, all you have to do is pay off the new loan, which locks you in to a more favourable interest rate overall.

Business Loans: Are you the proprietor of a small business, or looking to become an entrepreneur? Start-up expenses (such as marketing or equipment purchasing) can be challenging, and it’s difficult to access working capital when you already have a checkered credit history. Magical Credit can help you become a little more liquid with a short-term unsecured business loan. With the increased income your business generates, paying off your loan with us may be easier than carrying on without it!

Unexpected Medical Expenses: Even though most medical expenses are covered by Canada’s socialized healthcare system, emergencies happen. You may find yourself unable to work, or need a quick influx of cash to buy equipment to make your home more accessible. Perhaps you require accommodations from work or school, or you have an expensive regimen of prescriptions to fill. Heck, maybe your problem is dental, and therefore mysteriously not provided for by the government. Whatever the reason, a loan can take some weight off of your mind and allow you to focus your time on recovery.

A New Car: If you’re currently leaning on regular government subsidies as your primary form of income, you may find it difficult to afford a car. And without a car, it can be nearly impossible to find work and commute reliably if your worksite isn’t served by public transit. A small unsecured consumer loan can cover a down payment on a new vehicle, or allow you to buy a used model outright.

Remember: think of your loan as an investment in a more stable and prosperous future, and put it toward uses that will continue to benefit you in years to come!

Magical Credit serves clients across Canada!

If you live in one of the provinces listed below, click here to start your loan application process.

  • Ontario
  • Alberta
  • British Columbia
  • New Brunswick
  • Newfoundland
  • Northwest Territories
  • Nova Scotia
  • Nunavut
  • Prince Edward Island
  • Yukon

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 $500 to $20,000.

Can I pay off my unsecured personal loan early?

Of course! While we offer repayment periods from six 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.

Our loans are considered short-term loans and have up to a 6-60 month term with an interest rate ranging from 3.4%-20% per month.

Example: $1,500 borrowed for one year at 3.4% 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.

745 people applied for a loan with us in the last 7 days
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