Magical Credit is a Canadian direct subprime lender founded 2014. They're one of the few legal lenders that accept government benefits — Canada Child Benefit, EI, pension, workers' comp — as primary income. APR is steep (34.86% on installment loans, 365% on cash loans), but for borrowers excluded by every prime/B lender, Magical is sometimes the only legal option.
Magical Credit's installment APR (34.86%) is roughly 5× a prime personal loan. Their cash loans (365% APR) are payday-equivalent and should be a last resort. Try LoanConnect, your credit union, or a co-signed loan FIRST. If you do borrow from Magical, repay aggressively to minimize the interest bill.
3+ months at current employer · direct deposit
Rare among lenders · primary income accepted
Receivable from Service Canada
Retired Canadians on fixed income
Provincial disability + ODSP accepted
Must be discharged first
Magical Credit serves a real need: Canadians on government benefits or fixed incomes excluded by prime lenders. But the 34.86% APR is brutal — and the 365% cash-loan APR is predatory by any reasonable measure. Use ONLY after LoanConnect, credit union, and family options are exhausted.