Best Bad Credit Personal Loans in California in 2026
California LendingTree users with credit scores below 580 typically borrow about $11,500
What are the best lenders for bad credit loans in California right now?
It’s no secret that living in California is expensive. A total income of $100,000 isn’t enough to support a family of three in any of California’s top 10 metros, and commuting costs over $10,000 a year on average in eight California metros.
California’s strict consumer protection laws — though designed to protect you from overpaying — can also make it harder to find a loan in an emergency. Further, California loans for bad credit tend to cost slightly more than the national average for borrowers with bad credit.
To help track down a loan for bad credit in California, our experts used a rating system to select the top four lenders in the state from a list of over 40. These lenders have three things in common:
-
Available in California
Lenders don’t always operate in every state, but we’ve confirmed that each lender on this page offers loans in California. -
Accept bad credit
Every lender on our list has a minimum credit score below 580 (the threshold for bad credit), or explicitly says that they work with people with bad credit. -
Relatively affordable
These lenders offer APRs below 36%, which financial experts cite as the transition point between affordable and predatory debt.
Best for: Small financial emergencies – Upstart Short-Term Relief loan
- APR
- Up to 36.00%
- Cheaper alternative to payday loans
- Very low credit score minimum
- No fees for late payments or paying off loan early
- Can extend loan term up to five additional months if you make regular payments
- Get money as soon as the next business day
- Can’t borrow more than $2,500
- No mobile app for Android as of November 2025
Upstart’s Short-term Relief Loan comes with reasonable rates for small, short-term financial emergencies.
Upgrade’s Short-Term Relief Loan could be just what you need if you’re facing a small, unexpected expense. Its rates and terms are cheaper and longer than those of payday loans, making Upgrade a better option for responsibly (and affordably) getting out of debt.
An Upstart Short-Term Relief Loan won’t work for large amounts, however, so consider other lenders on this list if you need to borrow more.
Read our expert Upstart personal loan review.
Upstart has transparent eligibility requirements, including:
- Age: Be 18 or older
- Administrative: Have a U.S. address, personal banking account, email address and Social Security number
- Income: Minimum annual income of $12,000; must have a valid source of income, including a job, job offer or another regular income source
- Credit-related factors: No bankruptcies within the last three years, no current delinquencies and a reasonable number of recent inquiries on your credit report
- Credit score: 300+ (unless you’re an eligible college student or graduate, in which case Upstart could approve you with no credit)
Best for: Fast funding – OneMain Financial
- APR
- 18.00% – 35.99%
California residents must borrow at least $3,000
- Sends money as soon as an hour after closing
- Also offers secured loans
- Low credit score minimum
- Loans start at $3,000 for California residents
- Charges a one-time fee on every loan
OneMain Financial offers some of the fastest funding on the market and is available to borrowers with bad credit.
If you need an emergency loan but don’t want to pay predatory rates, consider OneMain Financial. Many lenders offer same-day funding, but OneMain distinguishes itself by sending money as soon as an hour after closing on a loan.
Still, one-time administrative fees are common with bad credit personal loans, and OneMain’s loans are no exception. OneMain charges a fee of either $25 to $500, or 1.00% – 10.00% on every loan.
And while you can borrow as little as $1,500 from OneMain in many other states, Californians must borrow at least $3,000.
Read our expert OneMain Financial personal loan review.
OneMain Financial isn’t very transparent about its personal loan eligibility requirements, but it’s possible to qualify even with a credit score as low as 500.
Before closing on a loan, you may need to provide:
- Government-issued identification (a driver’s license or passport)
- Proof of residence (a rental agreement or utility bill)
- Proof of income (pay stubs or tax returns)
OneMain loans are not available in Alaska, Arkansas, Connecticut, Massachusetts, Rhode Island, Vermont, the District of Columbia or U.S. territories.
Best for: Better approval odds with a peer-to-peer loan – Prosper
- APR
- 8.99% – 35.99%
- Better approval odds with peer-to-peer loans
- Available to borrowers with bad credit
- Allows co-borrowers
- Charges one-time fee of 1.00% – 9.99% on every loan
- Credit score minimum (560) on the high end of this list
Prosper offers peer-to-peer loans, which can be easier to qualify for than traditional personal loans.
If you’re worried you won’t qualify for a personal loan, try Prosper. Prosper’s peer-to-peer loans come from individual investors — that is, people rather than banks — which can make them easier to get than some other loans.
You can boost your odds of approval by applying for a joint loan with a co-borrower who has good or excellent credit. That said, its 560 credit score threshold is high compared to others on our list of bad credit lenders.
Prosper also charges a one-time origination fee that it’ll take out of your loan money before sending it to you.
Read our expert Prosper personal loan review.
To get a loan with Prosper, you must meet the following requirements:
- Age: Be 18 or older
- Administrative: Have a U.S. bank account and Social Security number
- Residency: Not live in Iowa or West Virginia
- Credit score: 560+
Best for: Loans from a California credit union – San Diego County Credit Union
- APR
- Up to 15.00%
- Low rates
- Small loan amounts
- Borrowers with bad credit may qualify
- Easy to join, even if you don’t live in SoCal
- Must join credit union to qualify
- No info on minimum credit or income requirements
San Diego County Credit Union is a California-specific credit union that offers low-rate personal loans and other financial services to its members.
San Diego County Credit Union (SDCCU) offers affordable personal loans and says that a low credit score doesn’t necessarily disqualify you. Its published APR of 15.00% makes it potentially one of the cheapest options on this list.
You will need to join SDCCU to qualify for a loan — but, fortunately, it’s easy. SoCal residents qualify automatically, or you could join by becoming a member of the Financial Fitness Association for an $8 fee.
San Diego County Credit Union doesn’t share its minimum income or credit requirements, though it does specify what it takes to become a member. You can open an account in person, online or over the phone in about 10 minutes if you meet the following criteria:
- Location: Live or work in Imperial, Los Angeles, Orange, Riverside, San Bernardino, San Diego, San Luis Obispo, Santa Barbara or Ventura counties.
- Connection: Have an immediate family or household member with an SDCCU membership.
- Membership: If you don’t qualify via location or connection, you can become eligible by joining the Financial Fitness Association for an $8 fee.
Average personal loan rates by credit tier
At 34.07%, the average bad credit personal loan APR in California is slightly higher than the national average (32.19%), meaning bad credit loans are more expensive in California than elsewhere on average.
| Credit tier | National average APR | California average APR |
|---|---|---|
| Excellent (800 and above) | 11.77% | 12.64% |
| Very good (740-799) | 14.74% | 14.68% |
| Good (670-739) | 22.72% | 23.07% |
| Fair (580-669) | 30.17% | 30.35% |
| Poor (Under 580) | 32.19% | 34.07% |
How to qualify for a loan in California if your credit is below 580
People with bad credit in California are about 20.6% less likely to get at least one loan offer compared to the national average, according to LendingTree data for Q3 2025. Here’s what you can do to boost your chances:
-
Add a co-borrower
A co-borrower with good or excellent credit can improve your chances of approval when you don’t qualify on your own. -
Use collateral
It can be easier to qualify for a loan when you put up collateral, like your car or savings account. -
Borrow less
Lenders often limit how much you can borrow with bad credit, so try applying for the smallest amount you need to get by. Learn more about where to find small loans.
Californians with fair or bad credit could significantly boost their chances of getting a loan by applying for less money. Here’s how we know: Californians with good credit borrow almost $19,500 on average, but that number drops to around $11,500 to $13,000 for Californians with bad or fair credit, according to LendingTree data from Q3 2025.
How to Compare Bad Credit Loan Options
Many lenders let you prequalify for a personal loan, so you can check your potential rates with no impact to your credit. Once you have offers, use our personal loan calculator to compare them — here’s what to look for:
-
Affordable monthly payments
Make sure your monthly payments fit your budget. If they don’t, keep shopping around for a cheaper loan, or consider loan alternatives. -
Low total cost of repayment
Ideally, you should choose the loan with the lowest total cost, but comes with an affordable term length. An expert rule of thumb is to pick the lender with the cheapest rates at monthly payments you can afford. -
A reasonable loan term
Your loan term represents how long you’ll be in debt. Typically, the longer you’re in debt, the more expensive it’ll be to pay off. If you can afford the monthly payments, choose a short repayment term rather than a longer one.
Why compare bad credit loans with LendingTree?
You’d shop around for your flight, so why not your loan? Borrowers can save an average of $1,659 by shopping for a loan on LendingTree and choosing the cheapest option.
One application, multiple lenders
Get offers from up to five trusted lenders when you submit a single form with LendingTree. It’ll take around two minutes to fill out.
Only soft credit check to prequalify
There’s no impact to your credit to see your potential offers and rates.
Transparent comparisons, vetted lenders
LendingTree will show you personalized offers from trusted lending partners if you qualify. Borrowers with bad credit who get at least one offer receive an average of 13 loan offers on the LendingTree platform.
California loan laws and borrower protections
In addition to federal laws that protect you against discrimination and deceptive loan practices, California has its own measures to protect its residents.
California’s consumer laws can protect you through…
-
Mandatory California licensing
Every lender and broker must apply for and maintain a California license and follow a set of rules to ensure fair lending. Make sure your lender is in the Department of Financial Protection & Innovation licensee database before signing any paperwork. -
Regulated loan rates and fees
California’s Fair Access to Credit Act limits rates and fees on loans of different sizes to curb predatory lending practices. -
Limited loan terms
For some small loans under $10,000, the Fair Access to Credit Act prohibits both ultra-fast repayment periods (that can trap you in a cycle of debt) and extra-long repayment periods (that result in expensive interest charges).
Alternatives to personal loans in California
Payday alternative loans
Payday alternative loans are small, short-term loans from credit unions that you can use instead of paying extremely expensive rates with a payday lender.
A payday alternative loan could be one of the cheapest options, but since many credit unions are local, it’ll take some legwork on your part to find one. Google credit unions in your area and call to ask if they offer payday alternative loans.
Community Development Financial Institutions (CDFIs)
CDFIs are financial institutions like banks, credit unions or loan funds that help low-income and underserved communities access loans and other funding. There are 1,000 CDIFs across the U.S. — you can search for one in your area with the CDFI searchable database.
Credit cards
You can pay for most things with a credit card, but credit card debt can come with expensive rates. While credit cards are best for small expenses you pay off regularly, they can be helpful in a pinch when you’ve exhausted your other options.
Learn more with our guides on when to use a credit card or personal loan and how to pay off credit card debt.
Salary advances
You can borrow against your salary by asking for a salary advance at work or by using a paycheck advance app. You’ll repay the loan when you get your next paycheck.
And when salary advances just aren’t cutting it, consider asking for a raise. A LendingTree study found that 82% of full-time workers who asked for a raise got one.
Learn more about the best personal loan alternatives. If you still can’t afford to make ends meet, consider state-sponsored programs like CalWORKs and CalFresh that could help you access affordable food and services like child care.
How to avoid predatory lenders in California
Predatory lenders charge high rates and expensive fees, often targeting people with bad credit in financial emergencies. These lenders typically offer fast loans that are easy to get — but they often trap you in a cycle of debt.
Watch out for some of the following warning signs:
-
Extremely high rates
It’s smart to avoid lenders with interest rates above 36%, but be especially careful if you see rates in the three digits. You may be in a financial bind now, but loans with rates this high can crush you with overwhelming debt. -
Hidden fees
Before you sign any paperwork, look carefully for hidden fees or unfair terms. If you don’t understand any part of your loan agreement, ask someone at the loan company to help, or copy it into an AI engine like ChatGPT to explain it to you. -
Pressurized sales pitch
If an agent from the loan company is pressuring you to sign paperwork, walk away. This is a common sales tactic with shady lenders. -
Bad reviews or bad history
Take the time to research the lender online. Read customer reviews on LendingTree, the Better Business Bureau, Trustpilot and Google. Look for red flags like low scores and frequent negative feedback.
While California has a high cost of living, don’t let it turn you to bad loans that’ll end up making your finances worse. Take your time and find something reasonable.
What sets LendingTree content apart
Expert
Our personal loan writers and editors have 32 years of combined editorial experience and 28 years of combined personal finance experience.
Verified
100% of our content is reviewed by certified personal finance professionals and meets compliance and legal standards.
Trustworthy
We put your interests first. We’ll tell you about any loan drawbacks and be clear about when to consider alternatives.
How we chose the best bad credit personal loans in California
We reviewed more than 40 lenders and loan marketplaces to determine the overall best bad credit personal loans in California. To make this list, the company must offer personal loans in California and accept credit scores of less than 580 and/or say it works with poor-credit borrowers.
From there, we assessed each lender or marketplace across four categories: eligibility and access; cost to borrow; loan terms and options; repayment support and tools.
According to our standardized rating system, the best personal loans in California for bad credit come from: Upstart, OneMain Financial, Prosper and San Diego County Credit Union.
Our categories
We assess how easy it is for people to qualify and apply. This includes state availability, soft-credit prequalification, membership requirements, funding speed and whether borrowers with less-than-excellent credit can get a loan.
We evaluate how affordable the loans are based on minimum and maximum APRs, loan fees and rate discounts. Lenders with unclear or potentially predatory costs receive lower scores.
We consider repayment term flexibility, loan amount ranges and whether options like secured loans, joint loans or direct-to-creditor payments are offered — plus whether the lender clearly communicates these options.
We evaluate borrower experience after funding: customer service access, hardship or forbearance programs, payment flexibility and digital tools like mobile apps or credit monitoring.
Our process
We gather data directly from companies through their websites, disclosures and direct communication with company representatives. Our editorial team verifies and updates information regularly. We value transparency and award less favorable scores when lenders obscure or omit details.
Our editorial team applies the same scoring model and standards to every lender. Lenders cannot pay to influence our ratings.
Frequently asked questions
Yes, several lenders offer loans for bad credit in California. If you want more options than the ones we’ve listed on this page, consider the best loans for bad credit across the U.S.
Yes, lenders like Upstart and OneMain Financial offer loans for people with a 500 credit score, but approval isn’t guaranteed. See our guide on how to improve your credit fast to qualify with more lenders.
Lenders like OppLoans and Possible Finance offer no-credit-check loans in California, but be careful — in exchange for quick and easy access to a loan, these lenders often charge expensive interest rates.