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States California Installment Loans

Bad Credit Installment Loans in California: Rates, Terms and Examples

Page last reviewed: October 28, 2026 · Reviewed for accuracy by Betty Walsh

Bad credit doesn't stop you from applying for an installment loan in California. Here is what a California-licensed lender can charge, with example payments, so you can judge any offer you get.

Check Your Options
AmountTermMaximum cost
$500–$2,499Up to 36 mo (48 from $1,500)Tiered monthly rates + fee up to $50
$2,500–$9,99912–48 mo (60 from $3,000)39.9% a year + fee up to $75
$10,000+Your contractNo state cap

These caps cover lenders licensed under the California Financing Law. Banks and credit unions aren't covered, so loans made by a bank, including through an online lending platform, can cost far more. Always check the APR on an offer. Need less than $500 for a few weeks? See California payday loan rules.

Example Loans at California's Maximum Rates

LoanAPRPayments
$500~38%12 × $48.24
$1,000~36%12 × $95.56
$2,500~43%24 × $152.81
$5,000~40%36 × $240.20
$9,000~40%60 × $348.05

Worked out from California law at the highest rates a licensed lender can charge. The $75 fee applies from $2,500 to under $5,000 and is in the APR there; the fee on smaller loans is in the APR too. These are examples, not offers from lenders in our network; a lender can charge less.

Can You Get One With Bad Credit?

You can apply. California law doesn't set a minimum credit score; each lender decides. What the law does is stop a licensed lender from charging you more than the caps above because of your score.

  • Payments count toward your credit. On loans of $2,500 to $9,999, the lender must report your payments to a nationwide credit bureau.
  • Free credit education. Before funding a loan of that size, the lender must offer you a free credit education program.
  • If you're turned down. Lenders in California's small dollar pilot program make loans from $300 at no more than 36% a year on the first $1,000.

What You Need to Apply

  1. Have a government ID, proof of income and a bank account ready.
  2. Submit one request through LendUp. Lenders in our network review it, and any offer shows the APR, payments and total cost before you sign.
  3. Check that the lender holds a California Financing Law license, or is a bank, before you sign.
Check Your Options

Check the Lender Before You Sign

Official lookup tool DFPI licensee search
  1. Search DFPI's licensee listing for the company's legal name, usually in the website footer.
  2. Look for an active California Financing Law license, and match the license number to your offer.
  3. If the offer names a bank as the lender, the state caps don't apply; compare its APR with the table above.

Call DFPI at 1-866-275-2677 with questions. You can pay a California-licensed loan early, in any amount, with no penalty.

Common Questions

Can I get an installment loan in California with a 500 credit score?

You can apply. California law doesn't set a minimum score, and each lender decides. If a California-licensed lender approves you, the rate caps for your loan size still apply.

How do you qualify for an installment loan in California?

Each lender sets its own requirements. To request through LendUp you'll need a government ID, proof of income and a bank account.

How much can I borrow?

California law doesn't set a loan minimum or maximum. What changes with the amount is the cap: tiered monthly rates under $2,500, about 39.9% a year from $2,500 to $9,999, and no state cap from $10,000.

Are installment loans legal in California?

Yes. Lenders licensed under the California Financing Law make them under state rate caps, and banks and credit unions lend under their own rules.

Will an installment loan help my credit?

On loans of $2,500 to $9,999, lenders must report your payments to at least one nationwide credit bureau, so paying on time is recorded.

Can I pay it off early?

Yes. A California-licensed lender must accept early payment in any amount at any time, with no prepayment penalty.

Official Sources

General information, not legal advice. Facts on this page were checked against these sources on October 28, 2026.

← California loan rules