Bad credit can make it harder to borrow money. But that doesn't mean you can't get a personal loan if your FICO score is below 580. Not all lenders work with bad credit borrowers, but a few do. Our top selections for bad credit loans in California include Universal Credit, Reprise, and OneMain Financial.
Why trust Credible
The Credible editorial team is independent and unbiased — lending partners do not influence our editorial content. From rates and fees to customer experience, our expert editorial staff analyzed over 899 personal loan data points across 31 lenders to simplify comparing personal loans. Using data-driven methodologies, we scored criteria that are important to you. This approach allows us to objectively rank personal loans so you can find the best loan for your situation. To learn more, read our methodology below.
Compare bad credit loans in California
Advertiser DisclosureOverview
Upstart has one of the lowest available APRs of Credible partner lenders and of all non-partners we reviewed, making it a good choice for well-qualified applicants. However, it's also one of few lenders that doesn't have a minimum credit score requirement (if you apply on the lender's website), which makes it an option if you have bad credit or no credit history. Upstart may charge an origination fee as high as 12%, but good-credit borrowers may not be charged one at all.
Trustpilot gives Upstart 4.9 stars, which is the highest of all lenders we reviewed.
pros
- May fund in 1 business day
- No minimum credit score requirement on lender site
- Low minimum APR
- Trustpilot score of 4.9/5 stars
cons
- May charge a high origination fee
- No discounts offered
Time to get funds
As soon as 1 to 3 business days
Loan uses
Pay off credit cards, consolidate debt, relocate, make a large purchase, and other purposes
Overview
Avant personal loans are a good choice for borrowers with bad credit looking for small- to moderate-sized personal loans. Loans are available up to $35,000 and you could get the money as soon as the next business day after approval. Plus, Avant is more likely than some lenders to approve the applications of borrowers who've prequalified with Avant. However, the lender charges an origination fee up to 9.99%, and its top-range interest rates are among the highest of the lenders we reviewed.
pros
- Borrowers with bad credit considered
- Funds as soon as the next business day
- 2-year loan terms available
cons
- No discounts offered
- Origination fee
- Not available in HI, IA, MA, ME, NY, VT, WV, WA, AP, AE, and AA
Fees
Origination fee, late fee, dishonored payment fee
Eligibility
Available in all states except HI, IA, MA, ME, NY, VT, WV, WA, AP, AE, and AA
Time to get funds
As soon as the next business day (if approved by 4:30 p.m. CT on a weekday)
Loan uses
Debt consolidation, emergency expense, life event, home improvement, and other purposes
Overview
Reprise may be an excellent option if you need a loan with bad credit. The lender says it will consider applicants with FICO scores as low as 560, and offers secured loans as well as some cosigned loans to help you qualify. Loan funds can be available the next business day once you’re approved. Plus, the company has a 4.7 Trustpilot rating — indicating generally satisfied customers.
But Reprise is not for everyone. Available loan amounts are relatively low at $25,000, and the minimum repayment term is relatively high at three years. The lender also charges origination fees, does not offer discounts, does not consider income from self-employment, and is not available nationwide.
pros
- Loans for bad credit
- 4.7 Trustpilot rating
- Secured loans available
- Cosigners considered
- Next-day funding available
- Easy to contact
cons
- Does not accept self-employment income
- Minimum 3-year loan term
- Relatively low maximum loan amount ($25,000)
- Origination fees up to 6%
- Not available nationwide
- No mobile app
- No discounts for autopay or direct pay
Fees
$15 late fee except where the state has a different limit (ie. NM), return payment Fees - $20 except where state has a different limit (ie – NM), and no prepayment penalty
Eligibility
Unavailable in CO, CT, HI, IA, ME, MD, MA, NV, NJ, NY, SD, VT, WA, and WV
Min. income
Sufficient disposal income
Time to get funds
1-7 business days depending on loan security type
Loan uses
Credit card refinancing, debt consolidation, emergencies, major purchases, medical and dental expenses, moving expenses, special occasions, unexpected expenses, vacation and travel
Overview
Universal Credit is one of a handful of lenders that offers personal loans for bad credit. If your FICO credit score is at least 560, you may be eligible for a Universal Credit personal loan. It offers loan amounts up to $50,000, repayment terms up to seven years, and discounts for direct pay and autopay. Funds are available as soon as the next business day after loan approval.
Note that rates and fees can be relatively high — you may pay an origination fee from 5.25% to 9.99%, and APRs start at 11.69%. If you get a loan with a high interest rate, consider refinancing your personal loan at a lower rate once you've improved your credit score.
pros
- Borrowers with bad credit considered
- $25,000 annual income requirement
- Autopay and direct pay discounts available
- Can fund in one business day
cons
- High APRs
- Potentially high origination fees
- Not available in Iowa
Eligibility
A U.S. citizen or permanent resident; not available in DC, IA, SC, WV
Time to get funds
As soon as 1 business day after acceptance
Loan uses
Debt consolidation, pay off credit cards, home improvements, unexpected expenses, home and auto repairs, weddings, and other major purchases
Overview
OneMain Financial has multiple options for bad-credit personal loans. There is no minimum credit score required (if you apply directly with OneMain), which means you could get a loan with bad credit (FICO below 580). Plus, cosigners are allowed — a cosigner is someone (ideally, with good credit) who promises to repay the loan if you can't, which can make it easier to qualify or lower your rate. And, secured personal loans are available. You secure a loan with collateral, which may also help you qualify or lower your rate.
Rates are higher than competitors and OneMain charges origination fees as either a flat fee up to $500, or a percentage from 1% to 10% (depending on your state of residence). Note that even if you prequalify for a personal loan with OneMain, getting approved isn't a given.
pros
- Flexible eligibility requirements
- Offers secured options
- Competitive bad-credit loans
- Physical presence
cons
- Availability
- Origination fees
- High starting APR
- Low maximum loan amount
Fees
Origination fee, unsuccessful payment fee, late fee
Eligibility
Must have photo I.D. issued by U.S. federal, state or local government
Time to get funds
As soon as 1 to 2 days after acceptance
Loan use
All except business, and education
Overview
Upstart has one of the lowest available APRs of Credible partner lenders and of all non-partners we reviewed, making it a good choice for well-qualified applicants. However, it's also one of few lenders that doesn't have a minimum credit score requirement (if you apply on the lender's website), which makes it an option if you have bad credit or no credit history. Upstart may charge an origination fee as high as 12%, but good-credit borrowers may not be charged one at all.
Trustpilot gives Upstart 4.9 stars, which is the highest of all lenders we reviewed.
pros
- May fund in 1 business day
- No minimum credit score requirement on lender site
- Low minimum APR
- Trustpilot score of 4.9/5 stars
cons
- May charge a high origination fee
- No discounts offered
Time to get funds
As soon as 1 to 3 business days
Loan uses
Pay off credit cards, consolidate debt, relocate, make a large purchase, and other purposes
Overview
Avant personal loans are a good choice for borrowers with bad credit looking for small- to moderate-sized personal loans. Loans are available up to $35,000 and you could get the money as soon as the next business day after approval. Plus, Avant is more likely than some lenders to approve the applications of borrowers who've prequalified with Avant. However, the lender charges an origination fee up to 9.99%, and its top-range interest rates are among the highest of the lenders we reviewed.
pros
- Borrowers with bad credit considered
- Funds as soon as the next business day
- 2-year loan terms available
cons
- No discounts offered
- Origination fee
- Not available in HI, IA, MA, ME, NY, VT, WV, WA, AP, AE, and AA
Fees
Origination fee, late fee, dishonored payment fee
Eligibility
Available in all states except HI, IA, MA, ME, NY, VT, WV, WA, AP, AE, and AA
Time to get funds
As soon as the next business day (if approved by 4:30 p.m. CT on a weekday)
Loan uses
Debt consolidation, emergency expense, life event, home improvement, and other purposes
Overview
Reprise may be an excellent option if you need a loan with bad credit. The lender says it will consider applicants with FICO scores as low as 560, and offers secured loans as well as some cosigned loans to help you qualify. Loan funds can be available the next business day once you’re approved. Plus, the company has a 4.7 Trustpilot rating — indicating generally satisfied customers.
But Reprise is not for everyone. Available loan amounts are relatively low at $25,000, and the minimum repayment term is relatively high at three years. The lender also charges origination fees, does not offer discounts, does not consider income from self-employment, and is not available nationwide.
pros
- Loans for bad credit
- 4.7 Trustpilot rating
- Secured loans available
- Cosigners considered
- Next-day funding available
- Easy to contact
cons
- Does not accept self-employment income
- Minimum 3-year loan term
- Relatively low maximum loan amount ($25,000)
- Origination fees up to 6%
- Not available nationwide
- No mobile app
- No discounts for autopay or direct pay
Fees
$15 late fee except where the state has a different limit (ie. NM), return payment Fees - $20 except where state has a different limit (ie – NM), and no prepayment penalty
Eligibility
Unavailable in CO, CT, HI, IA, ME, MD, MA, NV, NJ, NY, SD, VT, WA, and WV
Min. income
Sufficient disposal income
Time to get funds
1-7 business days depending on loan security type
Loan uses
Credit card refinancing, debt consolidation, emergencies, major purchases, medical and dental expenses, moving expenses, special occasions, unexpected expenses, vacation and travel
Overview
Universal Credit is one of a handful of lenders that offers personal loans for bad credit. If your FICO credit score is at least 560, you may be eligible for a Universal Credit personal loan. It offers loan amounts up to $50,000, repayment terms up to seven years, and discounts for direct pay and autopay. Funds are available as soon as the next business day after loan approval.
Note that rates and fees can be relatively high — you may pay an origination fee from 5.25% to 9.99%, and APRs start at 11.69%. If you get a loan with a high interest rate, consider refinancing your personal loan at a lower rate once you've improved your credit score.
pros
- Borrowers with bad credit considered
- $25,000 annual income requirement
- Autopay and direct pay discounts available
- Can fund in one business day
cons
- High APRs
- Potentially high origination fees
- Not available in Iowa
Eligibility
A U.S. citizen or permanent resident; not available in DC, IA, SC, WV
Time to get funds
As soon as 1 business day after acceptance
Loan uses
Debt consolidation, pay off credit cards, home improvements, unexpected expenses, home and auto repairs, weddings, and other major purchases
Overview
OneMain Financial has multiple options for bad-credit personal loans. There is no minimum credit score required (if you apply directly with OneMain), which means you could get a loan with bad credit (FICO below 580). Plus, cosigners are allowed — a cosigner is someone (ideally, with good credit) who promises to repay the loan if you can't, which can make it easier to qualify or lower your rate. And, secured personal loans are available. You secure a loan with collateral, which may also help you qualify or lower your rate.
Rates are higher than competitors and OneMain charges origination fees as either a flat fee up to $500, or a percentage from 1% to 10% (depending on your state of residence). Note that even if you prequalify for a personal loan with OneMain, getting approved isn't a given.
pros
- Flexible eligibility requirements
- Offers secured options
- Competitive bad-credit loans
- Physical presence
cons
- Availability
- Origination fees
- High starting APR
- Low maximum loan amount
Fees
Origination fee, unsuccessful payment fee, late fee
Eligibility
Must have photo I.D. issued by U.S. federal, state or local government
Time to get funds
As soon as 1 to 2 days after acceptance
Loan use
All except business, and education
Methodology
To evaluate the best bad credit loans in California, we compared 31 lenders using almost 900 data points. After identifying lenders with minimum credit score requirements below 580 — the FICO scoring model's benchmark for bad credit — we considered criteria including interest rates, fees, loan amounts, loan purposes, funding times, customer service, whether secured loans or cosigned loans are available, and more.
We scored lenders based on the following:
- Rates and fees: 18%
- Loan terms: 18%
- Customer experience: 17%
- Eligibility: 14%
- Customer satisfaction: 10%
- Efficiency: 10%
- Options for poor credit and no credit: 9%
- Discounts: 4%
All data points were verified by a senior editor to ensure accuracy and timeliness. Learn more about how Credible rates lenders by exploring our personal loans lender rating methodology.
Good to know
The annual cost of a loan is represented by the annual percentage rate (APR), which accounts for the interest rate plus upfront fees, like origination fees.
Compare: APR vs. Interest Rate on a Personal Loan: What To Know
How to compare bad credit loans
Even though you'll have fewer loan options with bad credit, it's worth comparing bad credit loans. Making the right decision can save you money, time, and headaches. When shopping for loans, compare the following factors:
- Annual percentage rate: Though bad-credit borrowers tend to face higher interest rates, rates can vary by lender. For instance, payday alternative loans (PALs) from federal credit unions currently cap interest rates at 28% and many online lenders cap rates at 36%. Payday loan rates in California, however, can be over 400% APR.
- Total loan cost: While the loan's APR expresses the cost to borrow on an annual basis, it doesn't necessarily represent the total cost of the loan. You need to consider the repayment term for that. Use a personal loan calculator to compare total loan costs, such as a 3-year loan to a 5-year loan, based on its APR. Longer-term loans, even if they have a lower monthly payment, may have higher overall costs. "Borrowers often overlook the total cost of the loan, including interest rates, fees, and repayment terms," says Shirley Mueller, senior vice president of Mortgage Lending at CrossCountry Mortgage. "It's important to understand the long-term financial impact. "
- Funding time: Some lenders, especially online lenders, can fund a loan within one day of approval. Others may take several days or more. Consider how quickly you need the loan and check lenders' funding times when shopping around. Be careful to avoid predatory loans (like payday loans and some cash advance apps) that can deliver money instantly, but charge very high fees to do so.
- Ability to add a cosigner or a co-borrower: If you have bad credit, adding a cosigner or a co-borrower to your application can be a big advantage. Either can help you qualify for a lower interest rate and/or a larger loan if they have good credit. Only a few lenders offer loans with cosigners. More lenders allow co-borrowers. The difference is that a cosigner merely guarantees the loan, while a co-borrower has equal access to the loan funds. The loan is added to your cosigner's or co-borrower's credit report, and can hurt or help their credit as it can yours.
- Customer satisfaction: Regardless of your credit score, you deserve a good customer experience. Get a sense of a lender's reputation through customer reviews and ratings on the Better Business Bureau and Trustpilot websites. Mueller suggests consulting the California Department of Financial Protection and Innovation, which allows you to verify California providers and look up legal action taken against them.
What are bad credit loans and how do they work?
A bad credit loan is a loan you can qualify for even with a poor credit score. These loans include some personal loans, cash advance apps, peer-to-peer loans, as well as less desirable loans like payday loans, title loans, and pawnshop loans.
Tip
Payday loans are strictly regulated in California and other states. California law limits payday loans to $300 and the maximum fee to 15% of the amount borrowed, up to $45. Still, a 15% fee on a two-week loan is the equivalent of paying 460% APR.
Learn More: What is a Bad Credit Personal Loan?
Personal loans for bad credit
Bad credit personal loans are installment loans with repayment terms generally between two and five years. If you can qualify for a personal loan, they tend to be a superior choice to short-term loans like payday loans and cash advance apps. This is because they have lower APRs, longer repayment terms (which means lower payments), higher loan amounts, and report to the credit bureaus (giving you an opportunity to improve your credit).
They can be secured or unsecured and primarily have fixed interest rates. When you take out a personal loan for bad credit, you receive the funds upfront in a single lump sum. You're then responsible for repaying the debt in monthly installments throughout the loan's term.
Important
Missing payments can hurt your score, making it even more difficult to borrow in the future.
Unlike short-term loans, which may only provide a few hundred dollars, bad credit personal loans can have limits up to $50,000. However, qualifying for a large loan is less likely with bad credit.
Your monthly payment, approved loan amount, and overall borrowing cost depend largely on the interest rate you qualify for. As a borrower with bad credit, you'll likely have to pay a higher rate than those with better credit, which will increase your monthly payment and limit the amount you can borrow.
Check Out: How Much of a Personal Loan Can I Get With Bad Credit
Pros and cons of personal loans for bad credit
While bad credit loans offer several advantages, there are disadvantages, too. Weigh the following pros and cons before taking out a bad credit loan.
Pros
- Fixed interest rate and payments
- No collateral needed for unsecured loans
- Consistent payments build credit
- Lots of purposes
Cons
- Higher rates likely
- Increased debt burden
- Fewer lenders to choose from
Pros
- Fixed interest rate and payments: Most personal loans have fixed interest rates, meaning your monthly payment remains the same throughout the loan's repayment term. This enables you to plan your budget around a predictable monthly expense.
- No collateral needed for unsecured loans: Many personal loans are unsecured, meaning you don't have to put up collateral to get the loan. While this can mean paying more in interest, you wouldn't be putting an asset at risk if you default on the loan.
- Consistent payments build credit: When you stay on top of your monthly payments, a bad credit personal loan can help you build your credit. That's because your payment history makes up 35% of your credit score.
- Lots of purposes: Lenders offer personal loans for a wide range of uses, including debt consolidation and emergency expenses. Lenders typically require you to specify the purpose of the loan when you apply and also prohibit certain uses. Depending on the lender, prohibited uses may include home-buying, business expenses, and investments.
Cons
- Higher rates likely: Having bad credit means you'll probably face higher interest rates than borrowers with better credit. This can inflate the overall cost of borrowing.
- Increased debt burden: When you take out a loan, you increase your debt-to-income ratio (DTI). This means a higher percentage of your income goes toward paying off debt. Not only can this restrict your budget, it can make it harder to be approved for additional credit.
- Fewer lenders to choose from: Borrowers with bad credit have fewer options, as many lenders require a good credit score or better.
Learn More: Pros and Cons of Bad Credit Loans
Current rates on personal loans for bad credit
According to Credible data, the average interest rate on a three-year personal loan is 31.95% for borrowers with credit scores below 580.
Bad credit loan rates vary from lender to lender. Plus, the rate you qualify for depends on your credit history, DTI, income, and more.
Keep in mind your rate will likely be higher than a lender's minimum APR, since the lowest rates are typically reserved for those with excellent credit.
Learn More: Current Personal Loan Interest Rates
How to qualify for a bad credit personal loan in California
Applying for a bad credit loan is similar to applying for any personal loan:
- Check your credit: Look up your credit score to get an idea of which lenders you'll qualify with. Your bank or credit card issuer may offer free credit monitoring that includes tracking your credit score. You can also review your credit report for errors that could be hurting your score. Get a free copy of your credit report at AnnualCreditReport.com.
- Compare lenders: Knowing your credit score, research lenders that work with bad credit borrowers. Compare interest rates, funding times, fees, and customer reviews. If you plan to apply with a cosigner or with a co-borrower, check to see which lenders allow it.
- Prequalify when possible: For a more accurate comparison of lenders, prequalify. This can give you a better interest rate estimate without a hard credit pull, but it's not an official offer of credit. Rates and terms stated in a loan offer may vary.
- Gather supporting documentation: When you settle on a loan, you'll need to provide personal and financial information to formally apply. Prepare by gathering your ID, proof of income, proof of employment, and any other required materials the lender asks for. If you're applying with a cosigner, they'll also need to provide this information.
- Apply for the loan: Submit a loan application and any required supporting documentation. At this stage, most lenders conduct a hard credit inquiry, which could ding your score for up to a year. Many lenders offer an online process.
Related: What Are the Requirements for a Personal Loan?
Bad credit loan alternatives
If you're struggling to qualify or secure an affordable interest rate, consider some of the alternatives to a bad credit personal loan in California:
Peer-to-peer (P2P) lending
P2P lending skips the traditional lending process by connecting borrowers and investors directly using an online marketplace. These lenders may not have the same strict requirements as traditional lenders, but the industry doesn't have the same amount of government oversight.
Prosper is one example of a hybrid P2P lender that coordinates lending via investors. Mission Asset Fund is a lending circle that connects borrowers with other borrowers to fund loans via a lending circle.
Cash advance apps
Cash advance apps, like Dave, Brigit, and Earnin, give you early access to a portion of your paycheck in the form of a short-term loan. Most of these apps don't charge interest, but you may have to pay other costs in the form of:
- Subscription fees
- Expedited funding fees
- Optional or mandatory tipping
The Center for Responsible Lending found that, between fees and tipping and short repayment windows, the average cost of an advance repaid in 7 to 14 days is equivalent to paying 367% APR.
Compare: Payday Loans vs. Cash Advances
Payday alternative loans
Otherwise known as PALs, payday alternative loans are a type of short-term loan offered by federal credit unions. Members can apply for two types of PALs:
- PALs I: $200 to $1,000 loans with repayment terms of 1-6 months
- PALS II: Loans of up to $2,000 with repayment terms of 1-12 months
The maximum interest rate on payday alternative loans is 28%.
Financial or hardship assistance
Financial assistance may be an option, and California offers several programs based on various needs. To check your eligibility, search the state of California's website or go to 211ca.org.
FAQ
When is a personal loan for bad credit a good idea?
Open
A personal loan for bad credit can be a good idea if the loan improves your situation — and if you have a good reason to borrow in the first place. If you're in a tough financial spot and a loan is your most affordable option, it may be a good idea.
But if you can find a way to borrow more affordably, find assistance in other ways, or even wait to borrow until you can improve your credit score, it may reduce both monetary cost and stress.
Will a bad credit loan hurt my credit score?
Open
Applying for a personal loan can temporarily lower your credit score if the lender runs a hard credit inquiry, which is common. A hard credit inquiry usually won't reduce your score by more than five points for up to one year. But repaying the loan and gradually reducing the amount of debt you owe can help offset the effects over time. Payment history is the single biggest factor in your FICO score, at 35%.
How long does it take to pay off a personal loan?
Open
The time it takes to pay off a personal loan depends on the repayment term and how well you fulfill your responsibility to repay. A loan agreement outlines the term, or the amount of time you have to repay.
Often, the term is between two and five years. Interest rates on most personal loans are fixed, so the monthly payments are the same amount over the life of the loan. You may be able to request an extension if you fall behind on payments, depending on the lender and your financial situation, but extending the loan likely means paying more interest.
Disclosure: Some lending partners that participate in Credible's comparison marketplace offer loans to borrowers with scores as low as 550. Borrowers with low scores tend to have fewer lending options than borrowers with higher credit scores.
Meet the expert:
Emily Batdorf
Emily Batdorf is a personal finance expert specializing in banking, lending, credit cards, and budgeting. Her work has been featured by the New York Post and MSN.
