✅ Amounts from $100 to $20,000, depending on the product
✅ Magical Credit loan open to people with low or non-traditional credit
✅ Accepts EI, pension, maternity leave and child benefit as income
✅ Approval possible within 1 business day
✅ 100% online application, in about 5 minutes
✅ Funds deposited directly into your bank account
✅ Direct lender, no intermediaries involved
✅ No penalty for paying off the contract ahead of schedule
Why we recommend Magical Credit?
Magical Credit has operated in Canada since 2014, headquartered in the Greater Toronto Area, and positions itself as an alternative to traditional banks for people who struggle to get approved because of their credit history.
Unlike conventional institutions, Magical Credit accepts non-traditional sources of income, such as employment insurance, workers’ compensation, maternity leave, child benefit and pension payments, which widens access to credit for households that banks often turn down for not meeting stricter approval criteria.
Another point in Magical Credit’s favour is how quickly it operates: the application is done entirely online, with no need to visit a branch, and a decision on approval usually comes back within 24 hours. Because it lends directly, with no intermediaries, Magical Credit also cuts steps out of the approval process, which helps anyone who needs to deal with a financial emergency quickly and without excessive paperwork.
Conditions to consider
A Magical Credit loan can be requested in amounts ranging from $100 to $20,000, depending on the product chosen, and is available even to those with low credit or a non-traditional credit history. Beyond regular employment, Magical Credit also accepts employment insurance, pension, maternity leave and child benefit as income sources, which makes the process more accessible to profiles that often run into trouble with banks.
In practice, applying is simple: the application is done 100% online and takes about 5 minutes, with a decision on approval within 1 business day. As a direct lender, with no intermediaries, Magical Credit deposits the approved amount straight into the client’s bank account and also allows the contract to be paid off early with no penalty.
Author’s opinion
The terms of a Magical Credit loan vary depending on the product chosen. On instalment loans, with amounts from $1,500 to $20,000, the interest rate is fixed at 34.86% per year, with terms of 12 to 78 payments that can be weekly, bi-weekly, semi-monthly or monthly.
Short-term loans, up to $1,500, charge a fixed cost for every $100 borrowed, which results in a proportionally much higher total cost — so it’s worth carefully checking which Magical Credit product actually makes sense for your financial situation before signing any contract.
It’s important to be clear that the contract must be paid in full by the end of the agreed term, with no automatic renewal, and that a late payment can be reported to the credit bureaus, affecting your score for future borrowing.
As an example, an instalment loan of $5,000, repaid over 36 months, produces payments of about $300.40, adding up to roughly $10,814 by the end of the contract. A short-term loan of $1,000, repaid in 14 days, costs $140, for a total of $1,140 to pay back — equivalent to a much higher annualized rate than the instalment loans.
Taking the time to run these numbers before signing helps you understand whether the payment truly fits your monthly budget without squeezing your other bills. These examples show that the shorter the term chosen for a Magical Credit loan, the heavier the payment tends to be — and the longer the instalment plan, the more you pay in interest overall.
See the step-by-step guide to applying for your Magical Credit!
Click the button below to find out about the requirements, rates and step-by-step process for applying for Magical Credit. On the next page, the Utua team breaks all of this down and more! Let’s take a look?
