Magical Credit review: Pros, cons & alternatives

Is Magical Credit legit in Canada?

​Yes, Magical Credit is a legitimate Canadian lending company that has been operating since 2014. It is a registered corporation and a member of the Canadian Lenders Association. It was nominated for the FinTech Company of the Year award by the Canadian FinTech & AI awards in 2018. However, it is not accredited by the Better Business Bureau.

Loans like Magical Credit

Spring Financial

8 Great

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Spring Financial Personal Loan

$500 – $35,000
Loan amount

9.99% – 34.99%
APR

6 - 84 months
Term

• Info
• Pros + Cons
• Details

Spring Financial is a Canadian online lender which offers personal loans up to $35,000. They provide fast approval and advertise quick funding via e-transfer on the same day or within two to three days.

If you don't qualify for their standard personal loan, you may be offered The Foundation program. This program focuses on credit building by requiring on-time payments over 12 months, after which you can access your saved funds. Similar to Magical Credit, Spring Financial offers loans to those looking to improve their credit.

• Established lender
• Lending options for those with bad credit
• No prepayment penalties

• High rates for bad credit
• You may be offered a credit builder loan (The Foundation loan) instead of a personal loan

Loan amount	$500 – $35,000
APR	9.99% – 34.99%
Term	6 - 84 months
Min. credit score	550
Fees	No fees except $30 NSF fee
Origination fee	N/A
Turnaround time	Within 24 hours

Loans Canada

8.5 Great

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Loans Canada Personal Loan

$250 – $50,000
Loan amount

9.99% – 35%
APR

3 - 60 months
Term

• Info
• Pros + Cons
• Details

Unlike Magical Credit, who is a direct lender, Loans Canada is a loan comparison platform that connects Canadians with multiple lenders through a single application. Whether you have excellent credit or need options due to a lower score, Loans Canada helps match you with personal loans, debt consolidation loans and other financing options. While the platform makes it easy to compare multiple offers, it doesn't fund loans directly—so if you prefer to apply with a specific lender, you'll need to do so separately.

• Options for good and bad credit
• Quickly compare multiple loan options in one place
• Rates start at 9.99%
• Multiple types of loans available

• Not a direct lender
• High rates for bad credit
• Watch out for scammers posing as Loans Canada

Loan amount	$250 – $50,000
APR	9.99% – 35%
Term	3 - 60 months
Min. credit score	300
Fees	No application, origination or brokerage fees
Origination fee	0
Turnaround time	Receive funds in as little as 24 hours.

LoanConnect

8.5 Great

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LoanConnect Personal Loan

$500 – $60,000
Loan amount

8.99% – 35%
APR

3 - 120 months
Term

• Info
• Pros + Cons
• Details

LoanConnect is another Canadian loan search platform that connects borrowers with a wide network of lenders. Whether you have excellent credit or you've been turned down by banks before, LoanConnect partners with over 30 lenders to help you find personal loans, debt consolidation loans and even loans for bad credit.

If you prefer a direct lender, you can apply with Magical Credit or explore other private lenders. But if you want a fast, hassle-free way to explore your loan options, LoanConnect is worth considering.

• Pre-approval in minutes
• Choose the best offer
• Options for good and bad credit

• High rates for bad credit
• Not a direct lender

Loan amount	$500 – $60,000
APR	8.99% – 35%
Term	3 - 120 months
Min. credit score	300
Fees	No application, origination or brokerage fees
Origination fee	0
Turnaround time	Receive funds in as little as 24 hours.

What we like about Magical Credit

• Loans for bad credit. Magical Credit considers applicants with poor credit or low income and accepts government subsidies like unemployment insurance, baby bonuses and more. Learn more about bad credit loans in Canada.
• No collateral required. Magical Credit’s loans are unsecured, meaning you don’t need to put up assets like your home or car.
• Fast approval. You can get approved in as little as 24 hours, with funds deposited into your account shortly after.
• Flexible loan use. Magical Credit offers personal loans for various needs, including medical expenses, bill payments and emergency costs, so borrowers have the freedom to use funds as needed.

What to watch out for

• High interest rates. APRs range from 19.99% to 35%.
• Doesn’t serve all of Canada. Magical Credit does not operate in Quebec, Manitoba, Saskatchewan and Newfoundland and Labrador.
• Loan amounts are limited. Borrowers can apply for $1,500 to $20,000. Some applicants may qualify for less than they request.

Magical Credit reviews

What do Magical Credit reviews say?

It is difficult to share the overall customer opinion across the internet considering the Better Business Bureau (BBB) and Google don’t have any public reviews for Magical Credit.
However, Trustpilot provides us with over 100 reviews with both positive and negative themes.

Many customers on Truspilot appreciate Magical Credit’s fast approval process and friendly customer service. Positive reviews also consistently praise Magical Credit for offering a list of loan options despite having bad credit. On the other hand, some borrowers report poor customer service interactions, difficulties reaching support and frustration with high interest rates.

What does Reddit say about Magical Credit?

There aren’t too many threads about Magical Credit on Reddit. The one discussion about Magical Credit on the platform includes a mix of opinions. Some contributors claim Magical Credit preys on those with mediocre financial literacy while others defend its legitimacy. Overall, the few discussions on Magical Credit are vague and don’t offer any detailed experiences with the company.

Am I eligible?

To qualify for a Magical Credit loan, you must meet the following criteria:

• Residency: Reside in Canada (loans are not available in Quebec, Manitoba, Saskatchewan and Newfoundland and Labrador).
• Banking: Receive income via direct deposit into an active bank account.

You must also meet the income requirements based on your financial situation:

If you are employed:

• Employment: Be employed for at least six months with a stable income.
• Credit history: Have a history of repaying loans, which may be considered during approval.

If you receive government benefits:

• Income: Receive eligible government subsidies. Almost any payment received from the government is classified as government subsidies by Magical Credit.

How to apply for personal loans like Magical Credit

Applying for an online loan generally requires submitting personal and financial information. Here’s what you’ll likely need:

• Government-issued ID. Lenders require identification, such as a driver’s licence or passport, to verify your identity.
• Proof of income. You may need to provide recent pay stubs, direct deposit records, or other documentation to show you have a steady income.
• Bank account details. Most online lenders require an active bank account for loan deposits and repayments.
• Instant bank verification. Many lenders, including Magical Credit, ask applicants to log into their online banking through a third-party service to verify income and financial history instead of uploading bank statements manually.
• Credit and affordability check. Some lenders review your credit history and financial obligations to determine whether you can afford the loan.
• Loan agreement review. Before accepting the loan, you’ll need to review the terms, including interest rates, repayment schedules and any fees.

Magical Credit follows this general process, but requirements and approval criteria vary between lenders. Always compare options to ensure you’re getting the best loan for your financial situation.

Bottom line

Magical Credit provides loans for borrowers with a range of credit scores, including those with bad credit. While it markets its loans under different names—such as emergency loans, medical loans and bill payment loans—they all function as unsecured personal loans with fixed repayment terms. While Magical Credit offers fast approvals and accessible lending criteria, its interest rates can be higher than those of banks and credit unions. Before committing, compare options from multiple lenders to ensure you’re getting the best loan for your financial situation.