Magical Credit Reviews 2025: Pros, Cons & a Smarter Alternative

June 12, 2025

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10 mins

‍TL;DR

What we like	What to watch out for
C$1,500 – 20,000 loans available even with bad credit	APR ranges from 19.99 – 46.8% (approx. 3.9% monthly)
Flexible 12- to 60-month terms	$896 cost on a C$1,500 loan over 1 year
No collateral or pre-payment penalties	Not BBB-accredited; A- rating with unresolved complaints

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1. What is Magical Credit? An Unbiased Look

Magical Credit is an online lender that offers personal installment loans, primarily targeting Canadians who may not qualify for traditional bank loans due to low income or a poor credit history.

They offer two main products:

Magical Cash Loan: A short-term loan of up to $1,500.
Personal Loan: A larger installment loan of up to $20,000.

On the surface, they provide access to funds when other doors are closed. However, this access comes at a significant cost.

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2. Magical Credit at a Glance

Feature	Details (2025)
Loan amounts	C$1,500 – 20,000
APR range	19.99 – 46.8%
Term length	12 – 60 months (installment) / up to 62 days (payday)
Funding speed	Same-day e-Transfer or next-day direct deposit
Minimum income	C$1,200 / month (employment or government benefits)
Credit check	Yes – but approves scores as low as 500
Early-payment penalty	None

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3. Real-World Cost Example

Scenario	Magical Credit	Bree
Borrowed amount	C$500	C$500
Interest / fees	C$70 payday-loan fee	C$0 mandatory fees + optional tip (average C$3)
Repayment due	14 days	Pay back on next payday (flexible up to 65 days)
APR (effective)	365%	0%

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4. Magical Credit Pros

Accessibility: They specialize in loans for individuals with bad credit or non-traditional income sources.
Credit Building: Because they are an installment lender, they report your payments to credit bureaus. On-time payments can help improve your credit score.
Larger Loan Amounts: They offer significantly larger loan amounts than payday lenders or cash advance apps.

5. Magical Credit Cons

Extremely High-Interest Rates: This is the most critical drawback. While they may be safer than payday loans, their Annual Percentage Rates (APRs) are still very high compared to prime lenders. This high interest is how they profit from lending to higher-risk borrowers, and it's what can make their loans difficult to repay.
Risk of a Debt Cycle: A high-interest installment loan can easily become a financial burden, trapping borrowers in a cycle of debt where a large portion of their payment goes to interest, not the principal.
Negative Customer Feedback: As of early 2025, Magical Credit holds a 1/5 star rating on the Better Business Bureau (BBB) and is not accredited. This indicates significant customer dissatisfaction.
Penalty Fees: Like most lenders, they may charge fees for non-sufficient funds (NSF), adding to the overall cost if you're struggling to make a payment.

6. Trust Pilot Review of Magical Credit

Magical Credit User Review From Trustpilot 2025

7. Magical Credit vs. Bree: A Head-to-Head Comparison

The difference between Magical Credit and Bree isn't just in the details—it's in the entire philosophy. One is a high-cost lender; the other is a financial wellness tool.

Here’s how they stack up:

Feature	Magical Credit	Bree (The Smarter Alternative)
Product Type	High-Interest Personal Loan	Interest-Free Line of Credit / Cash Advance
Interest Rate (APR)	Often 30% or higher	0% APR
Max Advance Amount	Up to $20,000	Up to C$500 per cycle
Core Cost	High-interest payments	Low C$2.99 monthly membership
Credit Check	Yes, a hard credit check is typically required.	No credit check required.
Impact on Credit	Can build or hurt your credit score.	No impact on your credit score.
Fees	Potential for NSF fees and other penalties.	No late fees. Optional express funding fee.
Best For	Large, long-term borrowing for those with few options.	Short-term cash gaps, avoiding overdraft, and managing finances without debt.

8. Introducing Bree: A Fairer Way to Bridge the Gap

Bree was created by co-founders who witnessed the damage predatory lending caused in Canada. They built Bree with a clear mission: help Canadians achieve financial wellness by providing an ethical, transparent, and affordable alternative to high-cost loans.

Get Up to C$500 with 0% Interest

With Bree, you can access an interest-free line of credit up to C$500. You read that right—0% APR. We don’t believe in charging you interest just because you’re in a tight spot. You pay back only what you borrow. This feature alone has saved our members thousands in interest fees.

No Credit Checks, No Worries

Whether you have bad credit, no credit history as a new immigrant, or just don't want a lender prying into your file, Bree is for you. We use secure, read-only access to your bank account to determine eligibility, not your credit score. This means applying for and using Bree has zero impact on your credit rating.

Simple, Transparent Pricing

Forget complicated interest calculations and hidden fees. Bree operates on a simple, low-cost subscription of C$2.99 a month after a free 30-day trial. That’s it. For less than the price of a coffee, you get access to cash advances and our full suite of financial tools. If you need funds instantly, you can choose an optional express fee. Standard funding is always free.

More Than Just Money: Your Financial Wellness Partner

Bree is more than just a cash advance app. It's a tool to help you get ahead. Inside the app, you’ll find:

Budgeting Insights: See where your money is going.
Benefit Calendars: Track upcoming government benefit payments (like CCB or ODSP).
Financial Education: Learn tips and tricks to improve your financial health.

9. What Real Canadians Are Saying About Bree

While Magical Credit struggles with a 1-star BBB rating, Bree is trusted by over 400,000 Canadians.

4.9 ★ on the App Store (1.4k+ reviews)
4.7 ★ on Trustpilot (1.2k+ reviews)

Here’s what our members say:

“Saved me from overdraft fees. I was able to get a small advance to cover a bill right before payday. A lifesaver!”

“Finally a lender that doesn’t trap you. The 0% interest is real. I paid back exactly what I borrowed. Highly recommend.”

10. The Verdict: Make the Smart Choice for Your Finances

So, should you use Magical Credit? If you need a very large sum of money and have exhausted all other options, it might be a path. But for the vast majority of Canadians facing a temporary cash shortfall, the high interest rates and risk of a debt cycle make it a poor choice.

The smarter decision is to choose an alternative that supports your financial well-being.

Bree offers a safety net without the trap. It provides the funds you need to handle life's surprises without charging you interest or damaging your credit. It's designed for paycheck-to-paycheck Canadians, gig workers, and anyone who needs a flexible, fair, and affordable way to manage their money.

Holly Lin