Finding a personal loan with bad credit in California can be challenging, but it’s not impossible. Many lenders cater to bad credit borrowers, offering flexible terms and quick approvals. This guide explores the best loan options available, highlighting their features, pros, and cons to help you make an informed decision.
Author of articles
Marina K
Update 14.01.2025
Getting a personal loan can be tough for many Californians with bad credit. With the high cost of living in the state and unexpected expenses popping up, many are left looking for other options. Bad credit loans give those who may not qualify with traditional lenders a chance. These loans that only require basic personal info to approve can help you cover emergencies or everyday expenses. When used responsibly, bad credit loans can be a good tool, but not a long-term solution to financial problems.
What Are Bad Credit Loans?
Bad credit loans are for those with low credit scores (300-630) or no credit. These loans give you quick access to cash but with higher interest rates. Loan amounts are from $100 to $50,000 with terms up to 5 years.
These loans are helpful when other options are not available, but are expensive because of the high APRs. For those with credit scores under 600, use it with caution.
The application process is similar to other personal loans but expect higher rates and possibly smaller loan amounts. Bad credit loans can be used for debt consolidation or emergency expenses, but the higher costs make them less attractive unless absolutely necessary.
Average Personal Loan Rates by Credit Score
The average personal loan rate in the U.S. is 12.29% according to a Bankrate study. However, your rate will depend on your credit score and financial situation. For bad credit borrowers, rates are much higher than the national average.
Here’s the breakdown of loan interest rates by credit score:
Bad (300-629). 28.50% - 32.00%
Fair (630-689). 17.80% - 19.90%
Good (690-719). 13.50% - 15.50%
Excellent (720-850). 10.73% - 12.50%
Pros and Cons for Bad Credit Loans
Pros
Bad credit personal loans give you access to cash quickly, which can be helpful in emergencies.
They give you a chance to consolidate high-interest credit card debt into one loan with potentially lower interest rates.
No collateral is required so you don’t risk your property like with home equity loans.
Cons
Bad credit borrowers get higher interest rates than those with good credit, so these loans are more expensive.
Loan amounts may be smaller and repayment terms shorter, so less flexible.
Some lenders may charge high origination fees, which can add to the overall cost of borrowing.
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Where to Get a Bad Credit Loan
Online lenders. These lenders focus on personal loans, often with fewer requirements than traditional banks. They may be more lenient with credit scores and faster approval and funding.
Credit unions. Credit unions offer loans with better terms and lower rates, especially for members. They may still have minimum credit score requirements, but are more understanding of financial difficulties.
Banks. Traditional banks offer personal loans but have stricter credit score requirements. If you have a relationship with a bank, they may be more willing to work with you even with a bad credit score.
Payday lenders. Payday loans are quick and easy to get but come with very high interest rates and fees. Use them with caution as they can trap you in debt cycles.
Note! Online loans in California are legal, but rates are capped.
9 Best Bad Credit Loans in California
Upstart
Overview. Upstart is an online lending platform that lends to bad or no credit borrowers. It’s fully online, so everything from application to approval is done digitally. Although Upstart lends to borrowers across the U.S. The platform uses a more holistic approach to lending by factoring in education, employment history, and other criteria besides your credit score so it’s a good option for those who don’t have perfect credit scores.
Features. Upstart offers loans from $1,000 to $50,000 with 3 to 5 year terms. APRs range from 7.40% to 35.99%. No minimum credit score requirement and uses FICO 9 so you can add rent payments, utility bills, and subscriptions to your credit history. So it’s more open to those with non-traditional credit profiles.
Pros. No minimum credit score requirement, so it’s available to bad or no credit borrowers. It also considers education and job history, so more flexible for borrowers with non-traditional credit profiles. Fast approval and funds can be received as soon as the next business day. The online platform is user-friendly and efficient.
Cons. While it’s open to many, the higher APRs may be a disadvantage to borrowers who can get lower rates elsewhere. Upstart also requires a steady job history, so borrowers with unstable employment may not qualify. Also, the online platform may not be for those who prefer to deal with a lender in person.
Avant
Overview. Avant is an online lender that lends personal loans to bad credit borrowers. The company is fully online and partners with WebBank to originate loans. Although Avant doesn’t have a physical office in California, it lends to borrowers nationwide.
Features. Avant offers loans from $2,000 to $35,000 with 24 to 60 month terms. APRs range from 9.95% to 35.99%. The minimum credit score is 580 and applicants must have a steady monthly income of $500 to $800. An admin fee of up to 9.99% may apply, and funds are usually disbursed the next business day.
Pros. Fast funding and flexible repayment options. No prepayment penalty, so you can pay off your loan early without extra cost.
Cons. Avant charges an admin fee, and late fees for missed payments and doesn’t allow co-signers or joint applications, so some borrowers may not have options.
MoneyMutual
Overview. MoneyMutual is an online loan marketplace that connects borrowers with lenders. It doesn’t lend directly but allows users to apply and then match with multiple lenders offering different loan products. The platform is fully digital and funds can be disbursed as soon as 24 hours after approval. It operates nationwide in the U.S. except for Connecticut, Florida, Illinois and New York.
Features. Loan amounts from $200 to $5,000 with varying APRs and terms depending on the lender. No minimum credit score is required, and MoneyMutual works with all credit types. To qualify, applicants must have an active checking account and minimum monthly income of $800. Loan terms and APRs are determined by the lenders and may vary.
Pros. Fast application process with approval in as little as 24 hours. Bad credit okay. No application fee and you can get matched with multiple lenders offering different loan terms.
Cons. APRs and loan terms are not disclosed upfront and may be high. Loan amounts capped at $5,000 which may not be enough for all borrowers. Borrowers may receive unwanted marketing offers after using the platform.
Oportun
Overview. Oportun is both an online and storefront lender that lends personal loans to individuals, including those with no credit history. It doesn’t require a credit score for approval, instead uses alternative data such as income and rent payments. It operates across the U.S. including California. Oportun also offers financial coaching and a free money-saving app to its customers.
Features. Loans from $300 to $10,000 with APR 32.93% to 35.95%. Loan terms are 1 to 5 years and funds are disbursed within 1 to 4 business days after approval. No minimum credit score is required, and the lender accepts various income sources including alimony and child support. Oportun doesn’t require a Social Security Number (SSN) for loan approval, so it’s open to individuals who can’t provide an SSN.
Pros. Oportun accepts borrowers with limited or no credit history. Small loan amounts for small emergencies and flexible income requirements start at $500 per month.
Cons. APR is high compared to other lenders, Oportun charges an origination fee up to 10% which reduces the loan amount disbursed. No option to change the payment date once set.
OneMain Financial
Overview. OneMain Financial is a direct lender with online and in-person services. It operates in 44 states, including California. OneMain Financial allows applicants to apply online, by phone or at a branch location, so there’s flexibility in the application process. OneMain Financial specializes in lending to individuals with poor credit or no credit history. Same-day funding is available in some cases if you choose to receive funds through a bank-issued debit card.
Features. OneMain Financial offers personal loans from $1,500 to $20,000 with APRs 18.00% to 35.99%. No minimum credit score is required but a minimum monthly income of $800-$1,000. OneMain Financial also offers fast funding and prequalification, but prequalification doesn’t disclose the APR.
Pros. OneMain Financial allows you to choose and change your payment date, which gives borrowers flexibility. The lender also offers joint loans and secured loans, which may increase chances of approval or better terms. Fast funding is available with same-day disbursement. For debt consolidation loans, OneMain Financial can send payments directly to creditors, making it easier for borrowers.
Cons. Origination fee, which adds to the cost of the loan. Prequalification doesn’t disclose the APR, so borrowers are unsure of the terms until after applying.
Happy Money
Overview. Happy Money is an online lender that partners with financial institutions insured by the National Credit Union Administration (NCUA) to offer personal loans for debt consolidation. The platform is online only and borrowers in California can access the service. Loans are available the next day with transparent terms and good customer service.
Features. Happy Money offers personal loans from $5,000 to $40,000 with APR 8.95% to 17.99%. The loan term 24 to 60 months so borrowers have flexibility. The minimum credit score of 640 to qualify for a loan. Loans are for debt consolidation only and have an origination fee of 1.50% to 5.50%.
Pros. No late, early repayment or bounced check fees so borrowers have flexibility if they encounter financial difficulties. The platform has flexible loan terms and a lower maximum APR compared to many others. Happy Money also reports to all 3 major credit bureaus, so borrowers can improve their credit score.
Cons. Happy Money only allows loans for debt consolidation, so borrowers looking for funds for other purposes will have to look elsewhere. No co-borrowers or cosigners so borrowers with less-than-ideal credit may not have access.
24/7 Lending Group
Overview. 24/7 Lending Group is an online loan referral service that connects consumers to a large network of direct lenders offering personal loans. They operate 24/7 and serve individuals with various credit types, including subprime credit. They connect borrowers to lenders across the country, including California. Once you apply, you will be matched with a lender who offers a loan and funds can be deposited into your account within 24 hours.
Features. Loans from $1,000 to $35,000 with APR 5.99% to 35.99%. Loan terms vary by lender, from 60 days to 72 months. 24/7 Lending Group doesn’t have a minimum credit score requirement, as they serve all credit types. Application is free and secure, with no credit impact, and borrowers will receive loan offers within minutes.
Pros. 24/7 Lending Group has a flexible loan network for bad credit borrowers. No minimum credit score requirement, so it’s open to a wide range of applicants. Application is fast, and loan offers are quick. The platform is 24/7, so borrowers can apply anytime.
Cons. Since 24/7 Lending Group is a referral service and not a direct lender, the actual loan terms, APRs, and fees are determined by the lender from the network, which can vary greatly. The platform is a matching service, so while it’s quick to apply, it doesn’t offer direct customer service or support beyond the initial loan referral.
1st United Credit Union
Overview. 1st United Credit Union is a member-focused financial institution with branches in California. They offer personal loans to members and non-members, with an emphasis on bad credit borrowers. Although it’s a credit union which means for profit banking model, it offers online and in-person services with a consultative and friendly approach.
Features. Loan amounts from $500 to $25,000 with APR 8.39% to 20.29%. Loan terms are 12 to 60 months. Credit score requirement varies, but is more accommodating to borrowers with less-than-perfect credit. 1st United Credit Union wants to offer loans that are accessible and affordable to many borrowers, especially those with bad credit history.
Pros. 1st United Credit Union is known for its friendly and approachable customer service, which focuses on building relationships with members. The credit union’s consultative approach ensures borrowers get personalized assistance in managing their finances. Loan terms are flexible, so borrowers can manage their payments. 1st United Credit Union offers loans to bad credit borrowers, which is good for those with less than ideal credit history.
Cons. As with many credit unions, you need to be a member to get full benefits, which may not be as convenient as working with an online lender.
California Credit Union
Overview. California Credit Union is a member-focused financial institution headquartered in Glendale, CA with branches in San Diego, Los Angeles, Riverside, and Orange Counties. They offer personal loans to their members with competitive rates and great service. Federally insured and operates online and in person, so borrowers within their service areas have convenience.
Features. Loan amounts from $500 to $50,000 with APR 8.99% to 18.00%. Loan terms are 12 to 60 months. Credit score requirement starts at 580 so it’s accessible to fair credit borrowers. California Credit Union offers competitive rates and various loan products for Californians, especially those in the education sector.
Pros. California Credit Union has competitive rates, so it’s a good option for California borrowers, especially educators, who can get additional discounts. With flexible loan terms, borrowers can find a repayment plan that fits their financial situation. It also has a more personal member-focused approach to lending so they can build strong relationships with their customers.
Cons. The only con of California Credit Union is you need to be a member to apply for a loan. These limits access to those who are not yet members.
Conclusion
Bad credit loans in California are quick cash but high interest and potentially bad terms. While it’s a solution for emergencies or financial struggles, borrowers must be aware of the costs. Online lenders, credit unions, and loan marketplaces are flexible but compare terms, understand fees and only borrow when necessary to avoid worsening financial problems.
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FAQ
What is the maximum loan amount for bad credit borrowers in California?
The maximum loan amount for bad credit in California is $100 to $5,000, but some lenders may offer more if you meet certain criteria like stable income or co-signer.
Can I apply for a bad credit loan if I’m unemployed?
Yes, while it’s more challenging, some lenders may still consider alternative sources of income like government benefits or self-employment income when reviewing your application.
Can I refinance a bad credit personal loan later?
Yes, you can refinance a bad credit personal loan if your situation improves. If your credit score goes up or interest rates go down, you may qualify for a lower interest rate. If your income increases, or you pay off other debts, your debt-to-income ratio may make you more attractive to lenders. Adding a co-signer with good credit can also help. But refinancing options depend on individual lender requirements, so it’s worth comparing offers.
