Financial emergencies can happen to anyone at any time, but unfortunately, not everyone can access the loans they would need to deal with them. Canadians living on social assistance payments, pensions, employment assistance payouts or other forms of non-job income often struggle to borrow money when they need to. Magical Credit is an open-minded lender that might be more willing to accept you than most – but be prepared to pay a high price for this rare service.
More Information on These Loans
Magical Credit provides loans as small as $500 and as large as $20,000 depending on what you need and can qualify for. Once you’ve taken possession of your funds, you’ll have between 6 to 60 months to pay them back along with the interest you accrue. This is a fairly routine set-up for medium-large loans like this and shouldn’t be too far off from what you would expect. You’ll receive your money quickly once all the paperwork is in order, too; it will usually take less than 24 hours for you to be paid.
This lender’s prices are somewhat unusual and deserve a little extra explanation as to why. Their upper limit on interest rates is extremely steep – 59.7%, more than ten percentage points higher than the already high maximum you would see on most loans like this. This is somewhat balanced out by the fact that the lower end of your possible rates is just 23%, which is slightly less than what you would usually be able to secure. The trouble is that you need good credit to get that lower rate, and those who have that will probably be looking for their loans elsewhere since they could presumably qualify for better. On the other hand, many more applicants for loans like this will likely have bad credit, meaning that it will be more common to be charged the higher rates. Few will probably be in such dire straits that they will only be extended the highest rate, but it’s probable that many will come close. If you apply to this lender, be prepared for some level of sticker shock.
Why the High Cost?
We’ve stated the Magical Credit loans are pricy, but we haven’t gone into the reasons for that just yet. Believe it or not, there is justification for this particular lender to have higher consumer costs than normal, and it has to do with the type of clients they are willing to accept. As part of their company goals, they aim to make it easier for people who receive their income from sources other than a job (especially those who rely on government subsidies) to borrow money when they need to. They accept applications from almost anyone, no matter where their income is coming from or how bad their credit is.
Many similar companies that offer online loans under much more restricted terms, extending offers only to those with verifiable employment and consistent income from their job. This is meant to exclude people who may not make enough over the course of time to reliably pay off their loan, as well as people who are living on a fixed income and who would have difficulty coming up with some extra money to pay their loan without taking it out of their usual budget.
More non-traditional clients means more risk for any lender. Even lenders who state that they are willing to forgo being picky about credit scores usually charge more for their loans as a result; Magical Credit’s flexibility regarding income sources as well means that they are taking on even more risks than your standard bad credit lender and thus have even more justification for their high interest charges. Those who have alternatives available to them and don’t want to pay those high prices are free to go elsewhere, but those who do not have the option of borrowing from another lender will at least have this one to turn to if they should need it.
More Good Signs Coming From Magical Credit Reviews
Many lenders look good on paper but fail to perform as well as expected in practice. Reading Magical Credit reviews can tell you everything you need to know about what it’s really like to deal with them. Although this lender might not be one of the ones with instant name recognition for most people, it is still well-regarded by many who do know about it. Many of those who have done business with them in the past leave very satisfied with the experience because they know they would not have been able to borrow from a lender with stricter requirements.
In case you needed more reason to feel confident choosing them, this company has also won themselves some accolades from industry professionals. They were recently awarded the FinTech Company of the Year award from the Digital Finance Institute, one of the leading bodies in Canada’s financial technology sector. They’ve received this honour in recognition of their commitment to innovation and promoting good financial sense among their patrons. This news is not quite a traditional review, but it’s a strong endorsement from an authoritative source that still suggests that good things are to be expected from this company.
Should You Use Magical Credit Loans?
Like many online lenders who open themselves up to applicants who don’t make the best candidates for traditional loans, Magical Credit provides services that are useful and accessible but definitely not inexpensive. You’ll want to rule them out if there are any other lenders you could work with instead, as will be the case for most people. However, if you know you won’t be able to secure a loan from another institution, it’s worth your time to try applying with this lender to see what you get. The final quote may still be out of your price range, but you can at least get a better idea of whether or not you can really afford to borrow from the one lender who will extend you a loan.