Bad Credit Loans in California: Get Personalized Rates in 60 Seconds

If you’re a California resident struggling with bad credit, you’re not alone. The high cost of living in California can make it challenging to maintain a good credit score. Fortunately, there are options available for [bad credit loans in California](https://www.acornfinance.com/personal-loans/bad-credit-loans-california/).

Whether you need funds for a home improvement project, an emergency expense, or a vacation, personal loans can provide the financing you need. Personal loans for bad credit in California come in two main forms: secured personal loans and unsecured personal loans. Let’s take a closer look at each option.

Secured Personal Loans

Secured loans require the borrower to put up some form of collateral, such as a house, car, or savings account. This collateral provides assurance to the lender that the loan will be repaid. While the risk for the lender is reduced, the risk for the borrower is increased. If the borrower defaults on the loan, the lender has the right to take possession of and sell the collateral to recoup their money.

Unsecured Personal Loans

Unsecured loans, on the other hand, do not require any collateral. These loans are based solely on the borrower’s creditworthiness. They may come with higher interest rates and more stringent approval criteria due to the increased risk for the lender. If a borrower defaults on an unsecured loan, the lender can pursue legal action or send the debt to collections, which can significantly impact the borrower’s credit score and make it more difficult to obtain financing in the future.

Example Personal Loans in California

Here’s an example of the type of personal loans available in California:

Example personal loans in California 10.64%3 APR 84 mos. Loan term $12,000 Loan amount

3Last updated on 04/02/2025. More than 10% of loans taken in the state of California have a lower APR than what is advertised here. You may have different rates and terms than what is being advertised.

As you can see, personal loans for bad credit in California can come with a wide range of terms and conditions. It’s important to compare offers from multiple lenders to find the best fit for your needs and financial situation.

How to Find Bad Credit Loans in California

When it comes to finding bad credit loans in California, there are several lenders to consider. Here are a few examples:

LightStream

– **APR:** 6.99–25.49% – **Loan Term:** 2–12 years – **Loan Amount:** Up to $100,000

Upgrade

– **APR:** 8.49–35.99% – **Loan Term:** 3–7 years – **Loan Amount:** Up to $50,000

BestEgg

– **APR:** 8.99–35.99% – **Loan Term:** 3 & 5 years – **Loan Amount:** Up to $50,000

Prosper

– **APR:** 8.99–35.99% – **Loan Term:** 2–5 years – **Loan Amount:** Up to $50,000

Reprise

– **APR:** 9.99–36% – **Loan Term:** 3, 4 & 5 years – **Loan Amount:** Up to $25,000

UniversalCredit

– **APR:** 11.69–35.99% – **Loan Term:** 2–7 years – **Loan Amount:** Up to $50,000

OneMainFinancial

– **APR:** 18.00–35.99% – **Loan Term:** 2–5 years – **Loan Amount:** Up to $20,000

These are just a few examples of the lenders that offer personal loans for bad credit in California. It’s important to compare offers and terms to find the best fit for your needs.

Helping California Residents Find Bad Credit Personal Loans

California residents face high costs of living, which can result in financial struggles. Finding a [personal loan for bad credit](https://www.acornfinance.com/personal-loans/loans-for-bad-credit/) in California can feel overwhelming. While obtaining a bad [credit installment loan](https://www.acornfinance.com/personal-loans/installment-loans-for-bad-credit/) in California comes with its share of challenges, there _are_ some lenders who can work with bad credit.

Before you empty out your savings account, read the following information to learn more about bad credit loans in California.

Bad Credit Loans in California: Frequently Asked Questions

#### What are bad credit loans in California?

As mentioned, personal loans for bad credit in California can come in two different lending models: secured personal loans and unsecured personal loans. Here’s a closer look at each:

Secured Loans: Secured loans require the borrower to put up some form of collateral, such as a house, car, or savings account. This collateral provides assurance for the lender in the event of a default. While the risk for the lender is reduced, the risk for the borrower can be heightened. If the borrower defaults, the lender holds the right to take possession of and sell the collateral to recoup their money.
Unsecured Loans: Unsecured loans, on the other hand, do not require collateral and are instead based solely on the borrower’s creditworthiness. They may come with a higher interest rate and have more stringent criteria for approval due to the increased risk for the lender. If a borrower defaults on an unsecured loan, the lender has the right to pursue legal action or forward the debt to a collection agency, which could significantly affect the borrower’s credit score and make it much more difficult to get approved for financing in the future.

How do bad credit installment loans in California work?

Typically, whether you are seeking a secured or unsecured loan, its structure will be designed to be repaid in installments. Installment loans are generally funded as a lump sum and repaid in fixed installments, usually monthly, with interest. The repayment period will dictate how long payments are required.

What credit score is needed for a bad credit loan near me?

To determine what credit score is needed for a bad credit loan near you in California, let’s talk about credit ranges and exactly what “bad credit” is.

A poor FICO score is considered to be in the range of 300-579, with fair FICO scores falling between 580-669. Offers will be more likely to be returned for borrowers with fair, good, average, or excellent credit. Most lenders on the Acorn Finance platform have a credit score cutoff of 600 or above.

It’s important to note that lenders can consider other factors, such as income or debt-to-income ratio, to determine a borrower’s creditworthiness. Some lenders may work with borrowers with so-called bad credit, but not many are willing to due to the risk.

Other States with Bad Credit Loans

If you’re interested in exploring bad credit loan options in other states, here are a few examples:

This is just a small sample of the many states that offer bad credit loan options. Be sure to explore options in your local area as well.

What Direct Lenders Offer Personal Loans for Bad Credit in California?

A direct lender is one that provides the loan themselves, not just the connection to the source that actually does. Some financial institutions may facilitate a loan but not actually offer it. Some local banks in California may provide bad credit loans directly, as do many online lenders.

Here are some of the top options for personal loans for bad credit in California:

Lender	APR Range	Loan Term	Minimum FICO Score Requirement
LightStream	6.99% – 25.49%	2-12 years	No minimum requirement, but better rates for higher scores.
Upgrade	8.49% – 35.99%	3-7 years	No minimum score listed on their website.
BestEgg	8.99% – 35.99%	3 & 5 years	No minimum score listed, but better rates for higher scores.
Prosper	6.95% – 35.99%	2-5 years	No minimum requirement, but better rates for higher scores.
Reprise	9.99% – 36%	3, 4 & 5 years	No minimum score listed on their website.
UniversalCredit	11.69% – 35.99%	2-7 years	No minimum requirement, but better rates for higher scores.
OneMainFinancial	18.00% – 35.99%	2-5 years	No minimum score listed on their website.

Pros and Cons of Personal Loans for Bad Credit in California

Here’s a quick summary table highlighting the pros and cons of obtaining personal loans for bad credit in California:

	Personal Loans for Bad Credit in California
	Pros	Cons
Fixed Monthly Payments	Possible Higher APRs and Fees
Faster Approval Process	Risk of Collateral Loss in Secured Loans
No Need for Collateral (Unsecured)	Tight Credit Score Requirements
Access to Funds for Unexpected Expenses	Potential Negative Impact on Credit Score if Not Repaid Promptly

Summary: Finding Bad Credit Loans in California

In summary, personal loans for bad credit can be a viable option when faced with unexpected expenses or the need to consolidate debt. While these loans come with their own set of risks and challenges, they can also provide much-needed financial relief. The key is finding the right lender who offers fair terms and conditions that suit your specific situation.

If you’re looking for more information on bad credit personal loans in California, visit our blog or check out our comprehensive guide to personal loans. We provide up-to-date resources and tools to help you make informed decisions about your financing needs.

Remember that bad credit doesn’t have to limit your financial options. With the right lender, you can secure a personal loan that fits your budget and helps improve your financial standing over time. —