Key takeaways
- A small loan from a California lender can help you cover emergency expenses even with bad credit.
- Compare interest rates, terms, amounts, and lenders to find the best deal.
- Consider alternatives like credit cards or cash advance apps for when you need money.
Personal loans can come in handy if you’re in a tight spot. Whether you’re looking to cover a major life event, pay medical bills, or make home improvements, quick loans can help you get what you need. The question is, where to get started? There are a whole range of personal loan options, from traditional banks to credit unions and payday lenders.
We’ll review what loan products you can expect to find, how to apply for online loans in CA, and what to look for to get the best deal.
How do personal loans work?
A personal loan can be used for various purposes, from home improvements to medical bills. You receive a lump sum from a lender, which you repay over time with interest. Repayment periods range from a few weeks to seven years or more. Interest rates range from 5% to 36% APR (annual percentage rate), depending on your creditworthiness, income, and debt levels.
Typically, they are unsecured, meaning you don’t need to put up collateral like your home, car, or savings account. Secured loans are an option and can be easier to obtain with bad credit. But you risk losing your asset if you can’t pay.
How to choose the best personal loans for bad credit in California
When you have bad credit, it’s essential to look for lenders with lenient criteria and favorable terms. Your best options will focus on your income and ability to repay rather than your credit score alone. Financial institutions that consider consumers with poor credit include online lenders and credit unions. Before you settle on a lender, read their reviews and ratings. Look at sites like the Better Business Bureau (BBB) and Consumer Affairs to understand how they’ve treated past customers.
Try to prequalify before you apply. Prequalifying will let you compare offers without hurting your credit score. Compare the amounts, repayment terms, interest charges, and any associated fees (like origination fees or late fees). Choose the option with the best combination of competitive rates, manageable terms, and fast approval.
Loan rates, terms, and amounts
California loans can vary widely depending on the lender and your credit profile. Interest rates typically range from 5% to 36%, with lower rates offered to borrowers with better credit scores. Loan amounts can start as low as $500 and go up to $100,000, depending on the lender. Repayment terms usually range from 12 to 84 months, offering flexibility to fit different financial needs. Be sure to compare these factors and only borrow what fits your budget and ability to repay.
Itching for a new credit card?
Which loan is right for you?
Choosing the right borrowing option depends on your financial needs and repayment abilities. Here are three common types to consider:
Short-term loans in California
If you need money now for an emergency expense, personal loans with same-day cash may be your best choice. This option gives you a lump sum quickly but has a short repayment period, often a few weeks or months. While California cash loans offer fast access to funds, they usually come with higher interest rates and fees, so it’s important to have a clear repayment plan.
Installment loans
Installment loans are designed for larger expenses and offer more flexibility. They are typically for larger amounts, and you repay the money in fixed monthly payments. The repayment term ranges from one to seven years. The exact terms you’re eligible for will depend on your credit score, income, and debt levels. Generally, they offer more favorable terms than short-term loans.
Debt consolidation loans
Debt consolidation loans are used to combine multiple high-interest debts into a single payment, often at a lower interest rate. They can simplify your finances and potentially save you money over time. By consolidating debts, you’ll make one monthly payment instead of juggling several, helping you manage your debt more effectively and reducing the stress of multiple due dates.
Are your credit card bills piling up?
How to apply for unsecured personal loans in California
Most loan companies in California have online applications that make it very easy to apply. You’ll typically need to provide basic personal information, such as your full name, address, and social security number. Lenders will also request your income, work history, and the specific amount you wish to borrow. Some lenders will ask for additional documentation, including bank statements, proof of insurance, or W2 forms.
Once your application is submitted, expect to hear back within one to three business days. Certain financial institutions provide same-day or next-day loan approval. Most will aim to provide funding within three business days. Take time to read through the terms in detail before finalizing the offer.
Curious about payday lending?
Pros and cons of California personal loans
Pros:
- Flexibility use, including consolidation
- Unsecured options
- APRs tend to be lower than credit cards
- Wide range of amounts
- Swift funding
Cons:
- High APRs for bad credit
- Risk of debt
- Potentially additional fees
Alternative borrowing options
There are plenty of alternative ways to secure financing. One option is a credit card with a 0% introductory APR. This enables you to use a line of credit without accruing interest for a specified time. It can be useful for short-term expenses if you’re confident you can repay the balance within the promotional timeframe.
For smaller amounts, payday loans are available. They have high fees generally equal to a 400% APR and a very short repayment period.A modern alternative is cash advance apps. These apps advance a portion of your paycheck to be paid back on your next payday. There’s no credit check, no interest payments, low to no fees, and instant funding.
Finally, payday alternative loans from federal credit unions can be an affordable option with competitive interest rates. The APR is capped at 28%, and you can borrow anywhere from $100 to $2,000. You do have to be a member of the credit union to be eligible.
Frequently asked questions
1. What is the easiest way to borrow money?
Cash advance apps are easy to qualify for since there is no credit check. Typically, you only a checking account with direct deposit and at least three months of banking history. Exact qualifications vary by app.
2. How can I borrow $2,000?
Look for lenders who work with borrowers in your credit score range. Online lenders, credit unions, and banks all offer personal loans for $2,000.
3. Can you get an installment loan in CA?
Yes, banks, credit unions, and online lenders all offer this product. They are a very common form of financing for larger expenses.
Bottom line
California lenders offer an array of borrowing options for all types of consumers. Whether you’re looking for a personal loan with instant cash, need to cover a large purchase, or want to consolidate debt, you’ll be able to find what you’re looking for. The best offer will come with an affordable monthly payment and low interest rate, no matter your credit score.
Any time you’re looking to borrow, be sure to prequalify and compare offers. There are plenty of providers out there for all credit types. Just remember, never borrow money that you cannot afford to repay.