Magical Credit Review (December 2022) – Pros, Cons, Features, & Pricing

Magical Credit is a type of private lender that specializes in providing high-risk debtors with short-term bad credit loans. It was established in 2014 to supply Canadians who are in need of short-term loans with services that are fast and easy to understand. Check out this Magical Credit review to learn more.

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Last Updated: Nov 23, 2022

About Magical Credit

According to site analytics for Magical Credit, more than 5000 clients have benefited from their services. Magic Credit focuses on borrowers with poor credit, which implies that they consider factors other than the borrower’s credit score when deciding whether or not to extend loans to them.

People with modest salaries or those who have trouble obtaining funds from major banks are the perfect candidates for Magical Credit loans. Due to the reasonable interest rates on its loans, Magical credit provides a respectable substitute for payday loans. It is possible to argue that Magical Credit is one of Canada’s most readily available lenders and provides a viable alternative to payday loan businesses.

Categories of loans that Magical Credit offers

Interest rates offered by Magical Credit range anywhere from 19.99 percent to 46.80 percent. Your credit score and the length of time you plan to pay back the loan both play a role in determining the interest rate you will be charged on the money you borrow.

The annual rates may be higher than what a majority of banks would charge, but they’ll still be lower than what you’ll pay for a payday loan. You will also have the opportunity to pay back your loan early without incurring any additional costs if doing so is something that makes sense, given your current state of finances.

The following are some of the consumer offers made available by Magical Credit:

Short-term personal loans

To be eligible for a short-term loan, you must have worked for the previous six months. Depending on how much money you make now, you can borrow anywhere from $1,500 to $20,000. The website offers a calculator that will allow you to determine the maximum amount you can borrow, the terms of the loan, and the monthly installments.

With an interest rate of 3.9 percent per month and loan terms ranging from 12 to 60 months. Consumers have the opportunity to determine the desired amount, as well as their conditions and the frequency of their repayments. Their monthly payments will be computed by the calculator based on the loan amount they choose. Employees are the only ones who can apply for this particular loan form.

Magical Credit Loan Banner - Comparewise

Short-term loans to government subsidy recipient

Magical Credit allows low-income households who meet specific requirements to apply for access to emergency funds through their exclusive service. This is made possible by Magical Credit’s willingness to accept various types of assistance as a non-traditional source of income verification.

All government-subsidized loans have a fixed period of 12 months and a fixed interest rate of 3.9 percent each month. Therefore, compared to even certain bank loans with higher interest rates, this chance for subsidy candidates is a fantastic solution.

Your income should include a contribution from a government subsidy for you to be eligible for this loan. This comprises benefits for people receiving unemployment and pensions, as well as payments for children and a variety of other subsidies.

Requirements needed to get Magical Credits Approval

When you are seeking to apply for a loan or you have applied already; the basic assumption is that the stronger your financial situation is, the simpler it will be to get accepted for a big loan with a low-interest rate and a reasonable repayment plan. It is essential to be aware that most lenders will look at your credit record and financial history to determine how quickly you will be able to afford the charges associated with the loan.

Magical Credit focuses on approving loans for those with terrible credit; it could be easier getting a loan from Magical credit when compared to getting approved by a bank or another lender. Magical credit determines whether or not you are eligible for the program based on your consistent monthly income.

The requirement includes people who receive government subsidies and those who receive pensions. Visit their website to find out which personal and financial papers will be accepted throughout the application.

Magical Credit Review Online Platform - Comparewise

The basic requirements are short and easy to understand. Magical Credit needs the following for a bad credit loan: temporary loan;

  • You must be a Canadian citizen or a Canadian resident (loans are unavailable in Saskatchewan, Manitoba, and Quebec).
  • You’ve been gainfully employed for at least six months.
  • A bank account that can be verified.
  • Documentation issued by the government that proves that you are at least 18 years old and above the age.
  • In a case where you’re unemployed, a government-provided income can be used.
  • A current credit history without any prior payday loan defaults.
  • A statement attesting to your ability to afford the minimum monthly payment of $1200 in your bank account.

Application Procedures to get Magical Credit Loans

Although Magical Credit‘s headquarter is in Toronto, Ontario, its web services are accessible around-the-clock. You only need to complete the necessary forms on their web portal if you want to apply for one of their loan products. The form requires your personal information such as your full name, email address, personal data, a copy of your identification, and any other necessary paper.

After filling application form accurately and you are found eligible for the loan, a response will be sent to you after which you can negotiate the terms of your loan. The loan will be deposited into your bank account electronically.

The processing of every loan application is completed within one business day. You will have to return the loan by making payments either monthly or bi-weekly (with interest) for a predetermined length of time that can range anywhere from six months to sixty months. When each payment is due, the money will be automatically debited from your bank account.

Magical Credit Review Application - Comparewise

Magic Credit’s Terms and Conditions

As a private lender, Magical Credit will not tolerate any missed or late payments under any circumstances. They make it very apparent that the loan amount is due in full on the date specified in the first and signed contract.

They do not provide any extensions or make any exceptions to this policy. Also, there is no provision for automatic renewals, and all instances of late payment are reported to the relevant credit bureaus.

Advantages of obtaining a loan from Magical Credit

In our Magical Credit review, we found several key highlights.

No collateral is needed for loan approval

Once you’ve been authorized, your money will be deposited into your account in as little as 24 hours. You don’t have to put your home or car up as collateral for your loan.

Large loan sums and extended repayment periods

Depending on your income and credit score, you may be eligible for a loan of up to $20,000. It is possible to repay your loan for up to five years, which is a longer duration than many other private lenders provide their borrowers.

Magical Credit Review Home Page - Comparewise

An applicant with a poor credit history can be accepted

When making lending decisions, more weight is given to your average monthly income than to your credit score.

Paying debts ahead of schedule is no extra cost

If you pay off your loan earlier than expected, you won’t be charged any additional fees. Also, it enables your credit score to increase, and it will seem good on your credit report.

Disadvantages of obtaining a Magical Credit Loan

We also found some room for improvement while making this Magical Credit review.

Lease Employment Requirement

In order to qualify for bad term loans, you will need to provide evidence that you have been employed for a period of at least six months.

Certain provinces are not serviced.

It is not feasible to obtain a loan from Magical Credit if you live in Saskatchewan, Manitoba, or Quebec provinces.

Magical Credit Review Borrow Amount - Comparewise

Exorbitantly high-interest rates

You may be subject to yearly interest rates far higher than the average rates provided by the nation’s largest banks, which are also higher than the rates you’ll pay with other private lenders.

Loan terms can’t be changed or renewed.

If you are having difficulty making the required payments on your loan, you will not be able to negotiate any changes to the conditions of the loan. Inability to make payments on time can also result in financial fines and a drop in credit score.

Magical Credit Referral Program

Our final piece of this Magical Credit review is about their referral program. Current customers of Magical Credit can take advantage of a unique referral program. For every buddy who applies and is approved to join Magical Credit through; they give a $200 referral incentive.

You will receive a bonus payment of $200 for each successful candidate that you refer to Magical Credit. In addition, the website indicates that after the fourth referral, you will be awarded $100 extra on top of the initial $200. This is a fantastic reward incentive for customers who are already using the service. Thanks for reading our Magical Credit review.

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FAQs about Magical Credit

Does Magical Credit provide debt relief?

No, Magical Credit does not provide a product that is intended exclusively for debt settlement; however, you may be able to achieve the same benefits by applying for a personal loan.

What counts as having bad credit?

A credit score between 300 and 500 is generally considered bad credit and indicates that you are more likely to default on loans. When you submit applications for credit products, or substantial loans from prime lenders, whose approval standards are more stringent, a bad credit score could cause problems for you. Bad credit can be caused by various things, including missing payments on credit goods, having too much unpaid debt, consolidating debt, or becoming a victim of identity theft.

How Much Does a Magical Credit Loan Cost?

It is essential that borrowers constantly keep in mind that additional costs will be associated with the final price of any loan they take out, such as the interest rate and any applicable fees. A calculator for short-term loans is one of the services that Magical Credit offers so that you can get a better idea of the fees that are linked with your loan. When you use it, you'll be able to determine the repayment terms, which will vary according to the amount of money you want to loan and the length of time you need it.

Can I get a mortgage with Magical Credit?

Magical credit does not participate in the actual process of obtaining a mortgage; instead, it merely offers the resource to prospective borrowers. Despite the fact that it is shown on their website as a category of choice, it is a redirect from a third party that promotes the various banks and other financial institutions that MagicalCredit works with.

What form of income is accepted by Magical Credit?

Employment Insurance, Private pension, CPP, Workers Safety and Insurance Board, Canadian Child Tax Benefit, and Maternity Leave are forms of government-provided income. However, for this revenue to be counted, Government must pay it directly into your bank account. The following are a few examples of frequent uses:

  • To cover unexpected costs such as Medical costs, phone bills, and car repairs.
  • Make one-time purchases with your money like flights, tuition, electronics, house improvements, and other things.
  • Consolidating a number of smaller debts into one manageable payment will help you get a handle on your mounting financial obligations.
  • Pay for recurring costs such as rent, utilities, gasoline, and groceries.

Is there a restriction surrounding the loan granted?

The flexibility with which you can use the funds from Magical Credit's loans is one of their best qualities. Magical Credit serves Canadians as private lenders by offering a service tailored to their needs and terms. It is intended for people who don't fit the requirements of a bank or other financial institution. It is a unique service for a restricted group of Canadians who need emergency cash or a short loan to raise their credit score. Through services rendered, Magical Credit demonstrates its commitment to increasing the financial capabilities of families with modest incomes.

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October 6, 2022
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