Magical credit payday loan review
- APR
- Varies by province
- Loan Amount
- $100 - $1,500
- Speed
- 24 hours
- Serviced Provinces
- Ontario, British Columbia, Nunavut, Yukon and the Northwest Territories
Our verdict
Quick and easy loans for bad credit, but prepare for high fees
Magical Credit payday loans provide fast and accessible financial solutions for individuals with poor credit or non-traditional income sources. While its easy application process and lack of a credit check appeal to some, the high borrowing costs and limited availability may not suit everyone. Consider alternatives if affordability is a concern.
Pros
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Accessible to those with poor credit
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Quick approval and fast funding
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No credit checks for payday loans
Cons
-
High borrowing costs
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Limited availability in Canada
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No extensions allowed on payday loans
What is Magical Credit?
Magical Credit is a Canadian private lender offering short-term loans to individuals with poor credit or non-traditional sources of income like workers comp, maternity leave, pensions and more. Magical Credit offers a variety of loan options tailored to specific needs, including dental expenses, child care, payday loans and more, providing flexible solutions for a range of financial challenges.
Is Magical Credit legit?
Magical Credit is a legit private lender licensed to offer payday loans in Ontario, British Columbia, Nunavut, Yukon and the Northwest Territories. This company is one of the most popular lenders of online loans in Canada.
What we like about Magical Credit payday loans
Magical Credit stands out as a lender that offers quick and easy loans for those with poor credit or who struggle to access traditional credit options. Here are standout factors that make them appealing:
- Accessible for bad credit. Magical Credit specializes in serving individuals with poor credit or non-traditional income sources, making loans accessible to more people.
- Flexible income acceptance. They accept a wide range of income sources, including government subsidies like child tax benefits, disability payments and pensions, providing options for those who may not qualify elsewhere.
- Fast application and approval. The online application process takes about five minutes, and decisions are typically made within one business day, with funds often available in 24 hours. Learn more about fast, easy loans in Canada.
- Transparent terms. Loan terms are straightforward, with fixed monthly payments and no hidden fees.
What to watch out for
While Magical Credit offers many benefits, there are some factors to consider before applying:
- High cost of borrowing. Magical Credit loans cost $15 per $100 borrowed, which can result in APRs in the triple digits.
- Limited availability. Magical Credit currently only offers payday loans in Ontario, British Columbia, Nunavut, Yukon and the Northwest Territories.
- Potential for overborrowing. With quick approvals and flexible terms, there’s a risk of borrowing more than needed, leading to financial strain during repayment. This can be a slippery slope, especially for those already struggling with bad credit.
- Higher APR compared to traditional loans. Although their loans are accessible, the overall cost is significantly higher than traditional loans or lines of credit.
⚠️ Warning: Be cautious with payday loans
High-cost payday loans are unsustainable for borrowing over a continued period of time and are expensive as a means of longer-term borrowing. If you're experiencing financial hardship call Credit Counselling Canada for free financial counselling (Monday-Friday 8:00am-5:00pm at +1 866-398-5999). You may also want to consider payday loan alternatives. Maximum borrowing costs will vary by province. Review the maximum borrowing cost for your province before entering into a loan agreement.Alternatives to Magical Credit payday loans
GoDay Payday Loan
Loan Amount
$100 - $1,500
Loan Term
Up to 62 days
APR
Varies by province
Cashco Financial Payday Loans
Loan Amount
$100 - $1,500
Loan Term
Up to 62 days
APR
Varies by province
Summary of Magical Credit reviews
| Site | Details |
|---|---|
| Trustpilot | 4.2/5 stars based on 95 Magical Credit reviews |
| 4.3/5 stars based on 363 Magical Credit reviews | |
| BBB accreditation | No |
| BBB rating | N/A |
| BBB reviews | 1 / 5 stars based on 1 customer review |
Reviews as of December 5, 2024
What do Magical Credit reviews say?
Feedback on Magical Credit from platforms like BBB, Reddit and Trustpilot include a mix of negative and positive experiences. On Trustpilot, many customers praise the company for its fast and accessible loans to borrowers with poor credit. However, concerns about high interest rates and occasional miscommunication with loan terms have also been raised on the platform.
BBB and Reddit, on the other hand, feature fewer positive reviews and tend to lean more critical. Customers on the BBB have reported issues with record keeping, such as disputes over loan dates and interest rates. Redditors echo similar concerns, describing the company as predatory and raising questions about transparency with their fees and data privacy.
Positive and negative feedback are natural on these platforms. While a mix of positive and negative feedback is common, the limited number of reviews on BBB and Reddit suggests these perspectives should be weighed carefully.
Am I eligible?
To qualify for a Magical Credit payday loan, you must:
- Be a Canadian citizen or permanent resident.
- Have a Canadian bank account active for at least three months.
- Receive income from employment, unemployment insurance, WSIB, or a private pension.
- Earn at least $1,500 per month via direct deposit or cheque.
- Live in Ontario, British Columbia, Nunavut, Yukon and the Northwest Territories.
How to get a Magical Credit loan
Applying for a payday loan with Magical Credit is simple and fast. Follow these three easy steps:
- Complete the online application. Start by filling out the straightforward online application with your basic personal and financial details.
- Receive swift approval. After submitting your application, you’ll get a fast approval email—no credit check required.
- Access your funds quickly. Once approved, the funds will be deposited directly into your bank account within 24 hours, so you can cover urgent expenses without delay.
What to expect once you have a Magical Credit payday loan
After receiving your Magical Credit payday loan, repayment is simple and straightforward. The full loan amount, along with any applicable fees, will be automatically withdrawn from your bank account on the due date, so you don’t need to worry about missing a payment.
Keep in mind that payday loans must be repaid in full by the end of the term, as extensions aren’t allowed. If you encounter financial difficulties, it’s important to contact Magical Credit right away to discuss a payment plan, as missed payments could lead to your account being sent to a third-party collection agency. By staying informed and proactive, you can confidently manage your loan and avoid unnecessary complications.
Alternatives to payday loans
If a payday loan doesn’t feel like the right fit, consider these alternatives:
- Cash advance apps. Apps like KOHO or Bree provide small advances on your paycheque without the high interest of payday loans.
- Installment loans. Theseloans offer larger amounts with longer repayment terms and often come with lower interest rates. Learn more about the best installment loans.
- Side hustles. Boost your income with part-time work or online gigs. Learn how to make money online.
For more options, check out this guide on payday loan alternatives.
Bottom line
Magical Credit offers quick, accessible payday loans for those with poor credit or non-traditional income sources, making it a convenient option for urgent financial needs. However, the high cost of borrowing and limited availability in Canada may make it less suitable for some borrowers. Consider all options and alternatives carefully before applying.
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