A bad credit loan is an unsecured loan offered when you have a credit score between 300 and 600. Late payments on loans, credit cards sent to collections, carrying credit card balances at the maximum amount and bankruptcy all contribute to a lower credit score.

When borrowers request a loan with a credit score between 300 and 600, it is considered a bad credit loan.  

Bad Credit Unsecured Personal Loans

It can be difficult to get an unsecured personal loan in California if you have fair or poor credit. Traditional lending institutions have nothing to secure their money with and if your credit history shows a lot of missed payments, they will not want to take the risk.  Can you get an unsecured personal loan with fair to bad credit? 

Compare Bad Credit Loan Companies

Comparing bad credit loan companies is not the same as comparing traditional personal loan providers. Most of the bad credit loan providers do not use the standard Fico credit scoring and will accept loan applications regardless of your credit score. We display the loan term, approximate interest rate and loan amount. If you receive a loan offer from any lender, read through the offer very carefully before accepting a loan. Check for fees like origination fees, early repayment fees, and application fees. 

Compare Fair Credit Loan Companies

If your credit score is above 590, here are a few lenders that offer loans when your credit score is between 590 and 650. 

Interest Rates for Unsecured Personal loans for Bad Credit

Interest rates from online lenders for Unsecured personal loans for bad credit will range anywhere from 5.99% to 36.00%.  These lenders offer Instalment loans - where the loan is repaid over a set period of time.  Depending on the loan and terms it may be as short as a few weeks to as long as 30 years for a mortgage.  If you are in a desperate situation, you become an easy target for payday lenders that end up charging exorbitant interest rates.  Always be sure to use reputable lenders whether online or in the marketplace.

Bad Credit Personal Loans

How difficult is it to get a loan if you have fair to bad credit? Most lenders use 680 as their baseline for lending criteria. The higher your score, the easier it is to get a loan for the money you need with great terms and interest rates. Fair credit falls between 580 - 669 and poor credit is everything below 579. It is easy to understand how people find themselves with fair to poor credit. Miss a few payments because you just don't have enough money this month and your score starts to drop. Should you lose your job or find yourself with unexpected medical bills, and you are barely making a living wage it becomes a vicious circle.

Bad Credit Secured Personal Loans

If you own your home and have enough equity in it, you can apply for a secured personal loan at your bank or local credit union. Most financial institutions will consider lending you money if you have security and earn enough money, even if your score is less than perfect. They now have something to seize should you be negligent in repaying your loan.

California Facts

California has always been considered a state where dreams come true. California is home to over 40,000,000 people which makes up 12.5% of the total USA population or 1 out of 8 US citizens resides in California. The majority of the population lives in the metropolitan areas of Los Angeles, San Francisco Bay, San Diego, San Jose, and other major centers. Los Angeles alone is home to over 4.000,000 people, whereas the San Francisco Bay area is home to over 7,000,000 people spread over 9 counties. 

California Weather

It is no wonder that California boasts a population of over 40,000,000 people - what better place to live when it comes to weather. California temperatures resemble those of a Mediterranean climate - warm, dry summers and mild, wet winters. The average temperature in the winter hovers in the low to mid 50's while the temperatures can soar to mid 80's in the summer. California does have 4 seasons in the mountainous regions - summer, fall, winter, and spring where people can view the changing foliage in the fall and go skiing, sledding in the winter.

California Economy

An interesting fact - if California was its own country it's economy would place it 5th in the world above that of the United Kingdom. California's 2.9 trillion dollar economy comes from the following high profile industries - agriculture, technology, tourism, and the entertainment industry. Some businesses that are based in California are - Google, Apple, Hollywood, Sony, Oracle, Walt Disney Productions. The Bureau of Labor Statistics states that in 2018 the average annual salary in California is $51,910 which equates to approximately $24.98 per hour. This represents approximately 14,038,950 working residents. The living wage in California (the hourly rate working 2080 hours annually that an individual must earn to support themselves and their family) for a single adult is $30,392 annually which equates to $14.61 an hour. If your family consists of two adults (one working) and two children you need to be earning $63,805 annually or $30.68 an hour. If both parents are working full-time and have three children, they must earn before taxes a combined annual income of $99,588 ($23.94 per hour). Minimum wage across California remains at $11.00 per hour or $22,880 annually.

Here is a list of some professions and their average salary:

  • Community and Social Services - $ 50,777
  • Education - $56,024
  • Healthcare Practitioners and Technical - $87,749
  • Food Preparation and Service Industry - $25,234
  • Office & Administrative Support - $39,328
  • Personal Care & Service - $25,029
  • Construction & Extraction - $54,975
  • Arts, Design, Entertainment, Sports & Media - $59,974
  • Management - $118,662
  • Legal - 106,421
  • Business and Financial Operations - $76,053

Remember, these are the state averages which do not include the extreme differences between smaller centers and high-income areas such as Los Angeles (Hollywood) and the San Francisco Bay Area where technical and internet companies are located. For example, the average salary is $86,373 and the cost of living is 80.3% higher than the national average.

The average home in California is $548,000, whereas the national median price for a home is $188,900. What does this mean if you live in California and want to purchase a home?

The average home in California is $548,000, whereas the national median price for a home is $188,900. What does this mean if you live in California and want to purchase a home? The combined household income should be $11,500 per year if you wanted to buy a home worth $548,000. Your monthly payment would be $2,790 per month (including taxes and insurance). If you lived in a small town, the median price of a home would be less. If you were earning $55,000 annually you would be able to purchase a home worth $330,000 as long as your down payment was 12%.  This would mean that you would need approximately $52,500 for the down payment and closing costs - your monthly payment would be $2,280.49.  But, if you were looking at purchasing a home in the San Francisco Bay area or in Orange County - the median price of a home is approximately $810,000 requiring an annual income of $167,670 to qualify.

These numbers are all statistics - what do they mean to you if you live in California. Unless you have a career that pays you more than the minimum living wage, it is going to be difficult to make ends meet. Considering the cost of living in the state of California, it is not surprising how many residents struggle with their credit scores and finances.

  1. Bureau of Labor Statistics - Bureau of Labor Statistics - California
  2. Visit California - Visit California
  3. Living Wage in California - Living Wage in California
  4. USA Government Statistics - USA Government Statistics