California Personal Loans (Bad Credit Accepted)

Personal loans are the best option for those that need more than a typical payday loan or installment loan and the longest time to make repayments – as long as 6 years in some cases.

What is a personal loan in California?

Simply put, a personal loan is a large loan issued to an individual that is repaid in equal monthly installments over and agreed set period of time. This includes added interest, the rate of which is based on an Annual Percentage Rate (APR).

If you apply with an online lender, you could be approved quickly that day and see the cash in your account in as fast as one business day.

While many opt to go to storefront lenders, this can be hassle and involves driving to the location, waiting in line, filling out paperwork, and then waiting (sometimes days) for a response. An increasing number of borrowers are now applying online across the state of California for its fast and easy application process and high probability of being approved over banks and other traditional lenders.

Unsecured personal loans, no collateral required

Personal loans are unsecured in California, meaning you do not have to pledge collateral such as your home, car or other valuable items should you fall behind in repayments or default on the loan. However, just because you can easily apply online doesn’t make it any less of an important financial obligation.

Defaulting will result in a black mark on your credit report, lowering your credit score and making it harder to obtain credit in the future. And, while legal action is not permitted against borrowers in California, you will most likely face collection proceedings, such as telephone calls, emails, letters, and doorstep visits in an attempt to recover what is owed.

The good thing about personal loans is they have flexible long-term repayment schedules, giving you that much needed breathing room to make reasonable repayments each month.

So, whether you’re renovating your home, buying a new vehicle, traveling the world or anything in between, this could be the perfect solution for those that haven’t had much luck with the banks.

California personal loans and the law

It is perfectly legal to issue personal loans in California both online and at the brick-and-mortar stores, though they are regulated to protect borrowers and ensure things don’t get out of hand.

For loans over $2,500 the interest rate is set by the market. That means you’ll receive a competitive rate based on what everyone is currently offering. By law the interest rate and other terms must be provided to you either physically or digitally before you can sign for the loan, so you will have to assess whether you can really afford it or not.

Personal loans below $2,500 are governed by California Personal Loan Law, which dictates rates should not exceed 2.5% of the unpaid principal amount up to $225, 2% in between $225 and $900, 1.5% between $900 and $1,650, and 1% between $1650 and $2,500.

This will rarely apply as personal loans below $5,000 tend to fall under the installment loan or payday loan banners, which have their own rules and regulations.

California personal loan requirements

Not everyone meets the requirements for a personal loan in California when applying online, but there are less hoops to jump through than with traditional banks and lenders.

Typically you must:

• Be a legal resident of the US state of California, whether you’re based in Sacramento, Los Angeles, San Francisco, San Diego, or a small city or town.
• Be in possession of a valid social security number and can verify your identity.
• Have a fixed address where you can be contacted.
• Be at least 18 years of age as lending to minors is illegal.
• Make at least $1,000 each month, whether that be from a job, self-employment, income protection or insurance payouts, or some other from of regular and verifiable income. (Digital statements may be required to be attached to your online application).
• Have a bank account or savings account (with basic checking facilities) in your name, so the money can be deposited, and repayments made automatically as per the schedule.
• Be happy to provide your phone, email address, financial info and other personal info as part of the application process.

As long as you meet these requirements you can easily use our directory of fully licensed online direct lenders to borrow between $5,000 and $25,000 today.

Personal loan luidance

Before we list a lender in our directory, they are checked to ensure they meet federal and California state lending laws regarding personal loans.

Before choosing an online lender we always advise borrowers to check for misleading language like no credit check, instant approval, and guaranteed approval. Although the online process is certainly fast and a lot of people get approved for personal loans with bad credit, all lenders reserve the right to carry out some form of credit check and cannot guarantee the speed of approval or that approval will be made at all.

Rest assured, all applications are fairly assessed by the lenders in our directory and their final decision is based on numerous factors, such as your employment status, income level, and other information provided on the application – not just your credit score or history that might be turned up by a credit check.

Of course, personal loans are not for everyone and if you wish to borrow a smaller amount over a shorter period of time, you might be interested in alternatives such as payday loans or installments, both of which are also available across California.

Get a personal loan online now

Our simple loan request tool could connect you to an online lender from our directory in a matter of minutes. If connected you will be sent directly to the lender to complete an application.

Alternatively, you can browse the directory to choose a lender yourself.