magicalcredit.ca FAQ

What is Magical Credit.ca?

Magical Credit.ca is an online lender in Canada that offers short-term personal loans and installment loans, primarily targeting individuals with bad credit or non-traditional income sources. They aim to provide quick access to funds.

Read more about magicalcredit.ca:
Magicalcredit.ca Review & First Look
Understanding the Perils of High-Cost Lending from a Holistic Perspective
Navigating the Pitfalls of Magical Credit: A Closer Look at Operational Mechanics and Ethical Concerns
Beyond the Glitter: Deconstructing Magical Credit’s Value Proposition and Exploring True Alternatives

Is Magical Credit.ca legitimate?

Yes, Magical Credit.ca appears to be a legitimate, licensed lending company operating in Canada, with disclosed provincial licenses (e.g., BC Lic: #83626, AB Lic: #349796, ON Lic: #4741412). However, being “legitimate” does not equate to being ethically beneficial, as their core service involves high-interest loans.

What are the interest rates for Magical Credit.ca loans?

Magical Credit.ca’s installment loans have an Annual Percentage Rate (APR) ranging from 19.99% to 35%. Their Magical Cash Loans (short-term loans) can have an APR as high as 365.00%, demonstrating a very high cost of borrowing. Beyond the Glitter: Deconstructing Magical Credit’s Value Proposition and Exploring True Alternatives

Can I get a loan from Magical Credit.ca if I have bad credit?

Yes, Magical Credit.ca specializes in providing loans to individuals with bad credit. They state they “look beyond your credit history” and accept various non-traditional income sources.

How quickly can I get funds from Magical Credit.ca?

Magical Credit.ca claims to offer “Super-Fast Loan Approval,” with funds typically deposited into your bank account within 24 hours of your application being approved.

Does Magical Credit.ca perform credit checks?

Yes, Magical Credit.ca performs a “soft credit check” initially, which doesn’t affect your credit score. If you are approved, they conduct a “hard credit check” which will be recorded on your credit report and can affect your credit score.

Does Magical Credit.ca report to credit bureaus?

Yes, Magical Credit.ca reports payments to both Equifax and TransUnion. They state this can help borrowers build their credit history if payments are made on time.

What types of income does Magical Credit.ca accept?

Magical Credit.ca accepts traditional employment income (employed for the past 6 months) as well as government-provided income, including EI, Maternity Leave, Child Tax Benefit, and private pensions. Navigating the Pitfalls of Magical Credit: A Closer Look at Operational Mechanics and Ethical Concerns

What is the maximum amount I can borrow from Magical Credit.ca?

You can borrow up to $20,000 with Magical Credit.ca’s installment loans. Their Magical Cash Loans are available for amounts between $100 and $1,500.

What can I use a Magical Credit.ca loan for?

Magical Credit.ca states you can use their loan money for any purpose without restrictions. Common uses mentioned include paying bills, medical expenses, emergency situations, debt consolidation, education, or even starting a business.

Are there any hidden fees with Magical Credit.ca loans?

Magical Credit.ca states there are “NO Repayment Penalty” for paying off your loan early. Their disclosures clearly list the cost of borrowing and APR, suggesting transparency in their primary fees. However, with high-interest loans, late payment fees can quickly accumulate if repayment terms are not met.

In which Canadian provinces does Magical Credit.ca lend?

Magical Credit.ca provides loans to residents of all provinces except Quebec, Manitoba, Saskatchewan, and Newfoundland and Labrador.

Can I apply for another loan if I already have one with Magical Credit.ca?

No, you cannot borrow additional funds from Magical Credit.ca until your current loan has been fully paid off. Understanding the Perils of High-Cost Lending from a Holistic Perspective

What does “Loan Pending” mean with Magical Credit.ca?

“Loan Pending” means your loan application is currently under review, and Magical Credit.ca will inform you of their approval decision shortly via email.

What is Instant Bank Verification (IBV) with Magical Credit.ca?

Instant Bank Verification is a secure method used by Magical Credit.ca where your bank securely sends them “read-only” bank statements for the past 90 days. This allows them to quickly assess your eligibility without requiring physical documents.

How does Magical Credit.ca’s repayment work?

Magical Credit.ca offers flexible repayment schedules, including bi-weekly, semi-monthly, and monthly payments, designed to integrate into your budget. The specific schedule will be outlined in your loan agreement.

Can I cancel my Magical Credit.ca application or loan?

The website doesn’t explicitly detail a cancellation policy for applications or loans. However, typically with loans, once funds are disbursed, the loan agreement is binding, and repayment is expected. You can always pay off the loan early without penalty.

Why should I choose Magical Credit.ca over other lenders?

Magical Credit.ca highlights its fast and simple application process, unique approval algorithm that considers more than just credit score, acceptance of bad credit, and positive reporting to credit bureaus as reasons to choose them. Magicalcredit.ca Review & First Look

What are some ethical alternatives to Magical Credit.ca’s high-interest loans?

Ethical alternatives include seeking interest-free loans (Qard Hasan) from community organizations, exploring government assistance programs, utilizing non-profit credit counselling services for debt management, building an emergency fund, or considering ethical crowdfunding for specific needs.

How can I contact Magical Credit.ca customer support?

You can contact Magical Credit.ca customer support by calling their toll-free number: 1-855-639-6888. They also have an online “Contact Us” section.