Magical Credit
Magical Credit is a Canadian online lender founded in 2014 that provides personal installment loans ($1,500-$20,000) and short-term cash loans to borrowers with bad credit or non-traditional income across nine provinces and territories. It operates the Magical Credit, Magical Business, and Magical Cash sub-brands and reports payment history to TransUnion and Equifax.
- Company typePrivate
- Founded2014
- HeadquartersConcord, Canada
- Headcount1–10
- GTM typeB2C
- OfferingServices
What Magical Credit does
Magical Credit Inc. is a privately held Canadian online lender headquartered in Concord, Ontario, founded in 2014 to serve borrowers with poor or non-traditional credit histories who are excluded from mainstream bank credit. The company operates a direct-to-consumer digital platform that accepts applications 24/7 via its website, runs a proprietary approval decision algorithm that evaluates applicants beyond traditional credit scores, performs instant bank verification, and uses soft credit pulls at pre-screening with hard inquiries only at funded approval. Its core product is the Magical Credit Bad Credit Personal Loan, offering $1,500 to $20,000 at a fixed 34.86% APR (3.9% monthly) with 12 to 78 payment terms and flexible weekly, bi-weekly, semi-monthly, or monthly schedules. Adjacent products include Magical Cash short-term loans ($100-$1,500, $14 per $100 cost of borrowing) and, under the Magical Business sub-brand, merchant cash advances and business funding.
The company generates revenue primarily through interest and fees on personal installment loans and short-term cash loans, with reported APRs ranging from 34.86% on installment products to an effective ~365% APR on 14-day Magical Cash loans in Ontario. Operations span 9 Canadian provinces and territories (Ontario, British Columbia, Alberta, New Brunswick, Nova Scotia, Prince Edward Island, Northwest Territories, Nunavut, and Yukon), with explicit exclusion of Quebec, Manitoba, Saskatchewan, and Newfoundland and Labrador, requiring licensing compliance across jurisdictions. Magical Credit also accepts non-traditional income sources — government subsidies including unemployment insurance, maternity/parental benefits, the Canada Child Benefit, workers compensation, CPP, and private pensions — as qualifying income, expanding its addressable borrower pool beyond standard salaried applicants. Payment history is reported to both TransUnion and Equifax, supporting a credit-building value proposition and a repeat-borrower flywheel.
The business operates as part of a family of brands under MAGICAL CREDIT INC., which also controls Magical Business (merchant cash advances) and Magical Cash (payday lending), enabling customer capture across credit quality tiers and ticket sizes. Distribution is exclusively direct-to-consumer via the website and a centralized phone support line, with no intermediaries or physical branches. Customer testimonials, a formal referral program, and SEO-optimized city-specific landing pages form the primary acquisition channels. The company reports 10,000+ cumulative customers served, a 4.3/5 customer rating, and ongoing application throughput exceeding 1,400 applications per week; headcount is reported at 1-10 employees, indicating a lean operating model.
Magical Credit firmographics
Firmographics- Name
- Magical Credit
- Legal name
- MAGICAL CREDIT INC.
- Website
- https://magicalcredit.ca
- Company type
- Private
- Founded year
- 2014
- Operating status
- Operating
- Headcount range
- 1–10 employees
- Short description
- Magical Credit is a Canadian online lender founded in 2014 that provides personal installment loans ($1,500-$20,000) and short-term cash loans to borrowers with bad credit or non-traditional income across nine provinces and territories. It operates the Magical Credit, Magical Business, and Magical Cash sub-brands and reports payment history to TransUnion and Equifax.
- Ownership category
- akta.pro rank
Magical Credit industry classification
Industry- Product category
- Alternative Consumer Lending
- NAICS
- Credit Intermediation and Related Activities (522)
- SIC
- Personal Credit Institutions (6141)
- akta.pro primary industry
- Near-Prime Unsecured Personal Loans (Installment) (FSAKAAAB)
- akta.pro secondary industry
- Emergency & Short-Term Installment Personal Loans (Unsecured) (FSAKAAAH)
Keywords
Where Magical Credit is headquartered
LocationHeadquarters
- HQ city
- Concord
- HQ country
- Canada
- HQ region
- North America
Offices1 record
Markets served
Magical Credit business model
Business model- GTM type
- B2C
- Offering type
- Services
- Cost components
- Personnel, Operations, Technology or R&D, Marketing or Sales, Others
Revenue model
- Personal/Installment Loan Interest: Magical Credit earns interest on personal loans ranging from $1,500 to $20,000 with repayment terms of 12-78 payments. Interest rate is calculated at 34.86% APR (3.9% monthly). Weekly, bi-weekly, semi-monthly, or monthly payment options available.
- Cash/Payday Loan Fees: For Magical Cash Loans ($100-$1,500), the cost of borrowing is $14.00 per $100.00 borrowed (Ontario regulations), equating to 365% APR for a 14-day term.
Pricing tiers
| Model | Billing | Price |
|---|---|---|
| One time/ perpetual license | Monthly | Personal Installment Loans: $1,500 - $20,000 with 12-78 month terms |
| Unit Pricing | Pay-as-you-go | Magical Cash Loans: $100 - $1,500 short-term loans |
| One time/ perpetual license | Monthly | Child Tax Benefit Loans: $1,500 - $20,000 |
Go-to-market motion1 record
Distribution channels3 records
Marketing channels5 records
Magical Credit product offering
Product offeringCore offering
Magical Credit is a Canadian online lender that provides personal installment loans of $1,500 to $20,000 to borrowers with bad credit or non-traditional income (government subsidies, child tax benefit, maternity leave, EI, pensions), at 34.86% APR (3.9% monthly) over 12–78 payments. It also offers short-term cash loans of $100–$1,500 under its Magical Cash sub-brand at $14 per $100 borrowed, and merchant cash advances under Magical Business. All applications are processed online with a proprietary approval algorithm, 24-hour approval, same-day bank deposit, and reporting to TransUnion and Equifax to help borrowers rebuild credit.
Product overview
Magical Credit is a Canadian online lender specializing in bad credit personal loans. The core offering is the Magical Credit Bad Credit Personal Loans product ($1,500-$20,000, 3.9% monthly interest, 12-60 month terms) targeting individuals with poor or non-traditional credit histories. Related products include Magical Installment Loans (Ontario only, $1,500-$20,000, 12-78 payments) and Magical Cash Loans ($100-$1,500, $14 per $100 cost, short-term). The company operates under a family of brands: Magical Credit (personal/installment loans), Magical Business (merchant cash advances), and Magical Cash (payday loans). Supporting features include a Short-Term Loan Calculator, optional Loan Protection Plan, and Instant Bank Verification for fraud prevention. The company accepts non-traditional income sources (government subsidies, pensions, maternity leave, EI) and reports to both TransUnion and Equifax credit bureaus. All services are delivered entirely online with 24-hour approval and same-day fund deposit.
Differentiator
Problem solved
Functional benefit
Brands
- Magical Business: Merchant Cash Advances and business funding solutions available through Magical Business at magicalbusiness.ca
- Magical Cash
Products and services
- Bad Credit Personal Installment Loans Personal installment loans of $1,500 to $20,000 for Canadians with poor or non-traditional credit. Fixed 3.9% monthly interest (34.86% APR) with 12–78 payment terms available weekly, bi-weekly, semi-monthly, or monthly. Includes 24-hour approval, same-day direct bank deposit, soft-credit-check pre-screening, and TransUnion/Equifax payment reporting to help rebuild credit. Available across most Canadian provinces.
- Magical Cash Loans (Payday/Short-Term) Short-term cash loans of $100 to $1,500 available to residents of Ontario, British Columbia, Alberta, Northwest Territories, Nunavut, and Yukon. Cost of borrowing is $14 per $100 (Ontario regulated; ~365% APR for a 14-day term). Repayment due at end of term with no extensions.
- Child Tax Benefit Loans Installment loans of $1,500 to $20,000 designed for recipients of the Canada Child Benefit, with fixed 3.9% monthly interest rate and monthly repayment. Requires minimum $1,410/month direct-deposit income.
- Magical Business (Merchant Cash Advances) Merchant cash advances and business funding solutions offered under the Magical Business sub-brand (magicalbusiness.ca), part of the Magical Credit family of brands. Provides working capital to small businesses through a cash-advance structure.
- Government Subsidy / EI / Maternity Loans Personal loans that qualify borrowers using government subsidy income (EI, maternity/parental benefits, workers' compensation, CPP, private pensions) as the primary or secondary income source. Designed for borrowers who do not meet traditional employment-income requirements.
Quantifiable outcome
- Loan approval and funding within 24 hours of application
- +2 more outcomes
Companies that use Magical Credit
Customer profileNamed customers7 records
Segments3 records
Ideal customer profiles3 records
Magical Credit technology and API
TechnologyTechnology focussed No
API detail
- Has API
- No
- API docs
- API detail
Core technology
AI maturity
App detail
Integration2 records
Feature5 records
Magical Credit partnerships and signals
Strategic signalScale indicators4 records
Recent moves6 records
Expansion highlights4 records
Magical Credit competitors and assessment
Company assessmentDirect peers
- Cash Money: Established Canadian payday and short-term installment lender with physical branches and online channel. Comparable on Magical Credit's payday / Magical Cash product line and overlapping Canadian footprint.
- Spring Financial: Canadian online lender (formerly Spring Personal Loans) offering $500-$35,000 unsecured installment loans to borrowers with bad or no credit. Highly comparable on product structure, target customer (bad credit borrowers), and digital-first D2C motion.
- Fairstone Bank of Canada: Canadian personal loan provider specializing in near-prime and credit-building borrowers via installment loans from $500-$50,000. Closest like-for-like competitor on product, pricing, and customer segment, and now a Schedule I bank with deposit funding.
- SkyCap Financial: Canadian online personal loan provider focused on bad credit and near-prime borrowers with installment products up to $10,000. Overlaps Magical Credit's core product range and target segment.
- Loans Canada: Canadian loan search / aggregator connecting borrowers with alternative lenders including bad-credit personal loans and installment lenders. Comparable as a customer-acquisition competitor for the same near-prime D2C demand.
- easyfinancial (goeasy segment): Direct-to-consumer installment and secured loan brand of goeasy; ~$2B+ loan book focused on near-prime unsecured personal loans of $500-$25,000. Most direct large-scale comparable on product, channel, and customer.
- Cash 4 You: Canadian short-term / payday and installment lender serving Ontario, BC, and other provinces. Comparable Magic Cash and Magical Credit installment loan offerings to a near-prime customer base.
Emerging players
- Borrowell: Canadian credit-builder and personal-loan fintech targeting near-prime borrowers via soft-pull approvals and credit-building tools. Adjacent player in the same borrower funnel, though currently focused on prime-and-up borrowers moving up.
Broad incumbents
- goeasy (easyfinancial): Canada's largest publicly traded alternative lender (TSX: GSY), offering near-prime and subprime personal loans, leases, and credit cards under easyfinancial. Directly comparable target customer (bad credit / near-prime Canadians), product set (unsecured installment loans), and risk profile, but materially larger scale and balance sheet.
- Money Mart: Long-standing Canadian payday and installment lender with national branch footprint; serves the same emergency / short-term credit demand as Magical Credit's Magical Cash product.
Market position
Strengths4 records
Weaknesses4 records
Competitive moat4 records
Key risks5 records
Key highlights6 records
Customer concentration
Magical Credit social profiles
Digital presenceMagical Credit financial estimates
Financial estimateRevenue estimate
Valuation estimate
Magical Credit leadership team
Management profileNumber of profiles
Profiles1 record
Magical Credit subsidiaries and ownership
Company hierarchySubsidiaries2 records
Magical Credit funding detail
Funding detailFunding overview
Funding rounds
Investors
Funding detail is available on the Subscription and Enterprise plan.Contact sales →
Magical Credit M&A and investment
M&A and investmentM&A
Investments
M&A and investment is available on the Subscription and Enterprise plan.Contact sales →
Frequently asked questions about Magical Credit
What does Magical Credit do?
Magical Credit is a Canadian online lender that provides personal installment loans of $1,500 to $20,000 to borrowers with bad credit or non-traditional income (government subsidies, child tax benefit, maternity leave, EI, pensions), at 34.86% APR (3.9% monthly) over 12–78 payments. It also offers short-term cash loans of $100–$1,500 under its Magical Cash sub-brand at $14 per $100 borrowed, and merchant cash advances under Magical Business. All applications are processed online with a proprietary approval algorithm, 24-hour approval, same-day bank deposit, and reporting to TransUnion and Equifax to help borrowers rebuild credit.
Is Magical Credit a public or private company?
Magical Credit is a private company. It is classified as founder individual operated bootstrapped and is currently operating.
When was Magical Credit founded?
Magical Credit was founded in 2014. It employs 1 to 10 people.
Where is Magical Credit based?
Magical Credit is headquartered in Concord, Canada, in the North America region.
How does Magical Credit make money?
Two revenue lines are on record. Personal/Installment Loan Interest is the primary driver. The others are cash/Payday Loan Fees.
Who are Magical Credit's main competitors?
Direct peers on record are Cash Money, Spring Financial, Fairstone Bank of Canada, SkyCap Financial, Loans Canada, easyfinancial (goeasy segment) and Cash 4 You. Borrowell is listed as an emerging player. Broad incumbents are goeasy (easyfinancial) and Money Mart.
Does Magical Credit have an API?
No public API is recorded for Magical Credit.
What industry is Magical Credit in?
Magical Credit's product category is Alternative Consumer Lending. Its primary akta.pro industry code is FSAKAAAB, Near-Prime Unsecured Personal Loans (Installment), with a secondary code of FSAKAAAH, Emergency & Short-Term Installment Personal Loans (Unsecured). Its NAICS code is 522 and its SIC code is 6141.