Best Personal Loans in California for 2024

First Tech leads with a MoneyGeek score of 98 for the best personal loans in California, excelling in customer service, competitive interest rates and loan flexibility.

Updated: October 15, 2024

Advertising & Editorial Disclosure

In rating personal loan lenders in California, MoneyGeek considered lender reputation, interest rates and how easily you can adjust your loan terms. With a MoneyGeek score of 98 out of 100, First Tech is our pick as the top lender for personal loans in California because of its standout customer service, education and fair rates. Following with a score of 96 is PenFed, recognized for flexible loan terms and clear communication.

If you live in California and have a credit score near 722, you're likely to find attractive loan rate and term options. Lenders will also look at your income history and debt-to-income ratio when you apply for a personal loan. We've also compiled a list of the best personal loan lenders in Los Angeles.

Best PersonalLoan LendersCalifornia

2024

Best Personal Loan Lenders in California

Best Overall - First Tech

Runner-Up - PenFed

Best for Bad Credit - Happy Money

Best for Debt Consolidation - Alliant Credit Union

MoneyGeek scores personal loan lenders with a point-based system designed to give a comprehensive overview of each lender’s performance in critical areas that matter to borrowers.

We completed our analysis of banks and lenders licensed to do business in California as of April 2024. We also considered financial companies that partner with federally insured institutions to offer competitive rates.

34Lenders Analyzed

Overall Best Personal Loan Lender in California

First Tech

97MoneyGeek Score
9.29% to 14.09%APR Range
UndisclosedMinimum Credit Score
$500 to $50,000Loan Amount Range
24 to 84 monthsRepayment Terms

First Tech Federal Credit Union is MoneyGeek's top recommendation for personal loans in California, scoring 98 out of 100. It stands out with an APR range of 8.94% to 18.00%, among the most competitive. This financial institution also offers a broad spectrum of repayment terms from six to 84 months, enhancing flexibility for borrowers. First Tech excels in customer service, provides extensive educational materials and has exceptional rates and fees that place it ahead of its competitors.

Pros

Insured by the National Credit Union Administration (NCUA)
No application or loan origination fee
Lots of educational resources available for consumers

Cons

Need to be a member to apply
Provides limited details on loan application requirements
Little available information regarding credit score requirements

SEE THE BEST PERSONAL LOANS IN NEIGHBORING STATES

Runner-Up for Best Personal Loan Lender in California

PenFed

96MoneyGeek Score
7.99% to 17.99%APR Range
UndisclosedMinimum Credit Score
Up to $50,000Loan Amount Range
Up to 60 monthsRepayment Terms

PenFed Credit Union is MoneyGeek's runner-up choice for best personal loan lender in California, scoring 96 out of 100. Its APR range is 7.99% to 17.99%, moderate compared to competitors. PenFed's loan repayment terms are competitive, with a maximum of up to 60 months. It excels in reputation and transparency — providing consumers with clear information about loan terms and flexibility — while offering adaptable loan conditions without stringent use requirements.

Pros

Offers some of the lowest APRs
No application fee

Cons

No information provided about credit score requirements
$50 minimum monthly loan payment

UNDERSTAND YOUR DEBT-TO-INCOME RATIO

Your amount of debt relative to your monthly gross income is called your debt-to-income ratio, or DTI. Debt includes items like mortgages, car loans, credit cards and existing personal loans.

Most lenders prefer to see a debt-to-income ratio of 35% to 40% or below for secured loans, and 40% to 45% or below for unsecured personal loans. A debt-to-income ratio above 50% is considered high, so approval may be more difficult, or your loan may have higher interest rates.

— Alvin Yam, CFP®

Calculate Your Monthly Loan Payment

Explore your loan options with our personal loan calculator, a simple tool to estimate monthly payments and total loan costs based on the amount, interest rate and term length, helping you make informed decisions before committing.

Personal Loan Calculator

Estimate the monthly payment for your loan.

Updated: Dec 24, 2024

Loan Amount

Loan Term

5 Years

Interest Rate

Payment:

$0/Month

Total Principal Paid:

Total Interest Paid:

Total Paid

Next Steps

Get personalized loan rates.

Why You Can Trust MoneyGeek

Although MoneyGeek partners with some of the companies we recommend, our content is written and reviewed by an independent team of writers, editors and licensed agents. Learn more about our editorial policies and expert editorial team.

Best Personal Loan Lender in California for Bad Credit

Happy Money

94MoneyGeek Score
11.72% to 17.99%APR Range
640Minimum Credit Score
$5,000 to $40,000Loan Amount Range
24 to 60 monthsRepayment Terms

Happy Money is the best personal loan lender for Californians with poor credit, scoring 94 out of 100. Although Happy Money works with lending partners rather than directly providing loans, it stands out for its transparency and ease of application. Offering APRs ranging from 11.72% to 17.99% (competitive compared to others in the market) and requiring a minimum credit score of 640, Happy Money makes obtaining financing more accessible. Its strongest areas include clear communication about terms and a straightforward application process.

Pros

Works with 10 federally insured lenders to originate loans
Transparent eligibility requirements, including for people with low credit scores
No application fee

Cons

Participating lenders charge an origination fee
Longer time to wait for loan approval compared to some competitors

How does MoneyGeek score lenders for bad credit loans?

We use our standard methodology and weights, but we limit our analysis to lenders that explicitly mention their minimum credit score requirements on their public websites. Only 12% of lenders that offer personal loans fit this criteria.

We filtered our analysis to include lenders with minimum credit score requirements between 580 and 640, which happens to meet Experian's definition of fair credit. Our research did not find any published minimums lower than 580.

Getting a personal loan is still possible if you have a lower credit score than 580, but you will not have access to the best interest rates and terms available. Some lenders offer prequalification, which involves a soft credit check that won't affect your credit score, to help you understand what you might be eligible for.

Best Personal Loan Lender in California for Debt Consolidation

Alliant Credit Union

96MoneyGeek Score
10.99% to 13.99%APR Range
UndisclosedMinimum Credit Score
$1,000 to $100,000Loan Amount Range
12 to 60 monthsRepayment Terms

MoneyGeek's pick for the best provider for personal loan debt consolidation in California is Alliant Credit Union, with a MoneyGeek score of 96 out of 100. Alliant is an online-only bank requiring membership for 90 days to qualify for a loan. Offering rates from 10.99% to 13.99%, Alliant stands out for its competitive APRs and clarity in conveying terms to consumers. The provider's strengths are its favorable interest rates and full transparency to potential borrowers.

Pros

Among the highest loan limits available in our analysis
Insured by the National Credit Union Administration (NCUA)
Wide variety of loan types available

Cons

An online-only credit union — no physical branches
Must be a member for 90 days to apply

How does MoneyGeek score lenders for debt consolidation?

We looked only at interest rates and fees (60% weight) and loan terms and flexibility (40% weight). If the winner in our analysis also won Best Overall or Runner-Up, we selected the next-best winner for diversity.

Some lenders have minimum interest rates that are higher for debt consolidation loans compared to their rates for general-use loans. When consolidating debts, finding the lowest interest rate possible will help you save the most money over the long term.

IS INTEREST ON PERSONAL LOANS TAX DEDUCTIBLE?

Interest on personal loans is generally not tax deductible, as personal loans are considered consumer debt. But there are some exceptions where the interest may qualify:

When consolidating high-interest qualifying debts like credit cards or student loans, if used to pay off those debts.
If used for home improvements that increase the home's value.
If the loan proceeds can be demonstrated as used exclusively for business expenses or starting a business.
In some cases, if the loan is used for investment purposes related to income-generating assets.

— Alvin Yam, CFP®

Impact of Credit Score on Loan Repayment in California

Lenders evaluate your creditworthiness — focusing on your credit score, credit history, income and debt-to-income ratio — to determine the terms of your loan, including the annual percentage rate (APR). As a Californian seeking a personal loan, improving your credit score before applying could secure you more favorable loan conditions.

Use the table below to see how your credit score can affect your monthly loan repayments.

Data filtered by:Results filtered by:

Credit Band

Select

Credit Band:690 to 719

Loan Amount

Select

Loan Amount:$2,000


$348	6
$180	12
$97	24
$69	36
$55	48
$47	60
$42	72
$38	84

This table approximates monthly payments, calculated using median personal loan interest rates typical for various credit score ranges. These numbers are median estimates provided for general guidance. They should not be taken as precise rates for everyone in each credit score category. Actual interest rates can differ due to lender-specific policies, prevailing market conditions and unique borrower profiles.

Pros and Cons of Personal Loans in California

Personal loans offer the flexibility to manage finances with lower interest rates, the option to consolidate debts and a quick influx of funds when unexpected needs arise. However, it's important to approach personal loans carefully — the potential for additional fees and the risk of asset loss in secured loans present notable considerations.

For an in-depth understanding of these tradeoffs, review the pros and cons of personal loans before deciding to apply.

The pros and cons of personal loans

More affordable interest rates than credit cards for eligible borrowers
Capability to consolidate various high-interest debts into a single, manageable payment
Swift fund disbursement to address immediate financial needs
Possibility of securing favorable loan conditions with the help of a creditworthy co-signer

Potential for additional costs due to origination fees
Risk of penalties for early loan repayment
Possibility of losing assets with secured personal loans
Temptation to accumulate excess debt due to ease of approval

FAQ About Personal Loans in California

If you have questions about personal loans, MoneyGeek has answers to help you make an informed decision before applying.

Who is the best lender in California for personal loans?

According to MoneyGeek's analysis, First Tech is the best lender for personal loans in California, with a MoneyGeek score of 98. Its average APR is about 13.5%.

Where is the best place to get a personal loan in California?

In California, online lenders, banks and credit unions all offer personal loans. For those seeking local in-person services, California Credit Union, 1st United Credit Union and Credit Union of Southern California are among the local credit unions available.

Who has the best personal loan interest rates in California?

PenFed offers the lowest APR for personal loans starting at 7.99%, according to MoneyGeek's analysis. Securing the lowest interest rates typically requires an excellent credit report.

What can I use a personal loan for in California?

Lender restrictions on the use of personal loans may vary. But generally, in California, personal loans can be used for various purposes, such as emergencies, weddings and home or auto repairs. They typically can't be used for college tuition or illegal activities.

What are some personal loan red flags to look out for?

Personal loan red flags include extremely high APRs (such as 35% or more), strict repayment penalties and a lack of transparency about the loan originator. Additionally, be cautious of negative consumer reviews and processes that do not require proof of identity or income.

Do lenders consider income level when applying for a personal loan?

Yes, lenders consider income level when you apply for a personal loan, along with other factors such as debt-to-income ratio, credit profile, employment history, type of employment and overall credit history. It's important not to open new credit lines when seeking a loan, as it can affect your application's success.

Personal Loans

Best Personal Loans

Personal Loans

Best Bad Credit Loans

About Zachary Romeo, CBCA

Zachary Romeo is a certified Commercial Banking and Credit Analyst (CBCA), and the Head of Loans and Banking at MoneyGeek. Previously, he led production teams for some of the largest online informational resources in higher education, with over 13 years of experience in editorial production.

Romeo has a bachelor's degree in biological engineering from Cornell University. He geeks out on minimizing personal debt and helping others do the same through people-first content.

Read Full Bio »

sources

Experian. "What Is the Average Credit Score in the U.S.?." Accessed October 15, 2024.

The content on this page is accurate as of the posting/last updated date; however, some of the rates mentioned may have changed. We recommend visiting the lender's website for the most up-to-date information available.

Editorial Disclosure: Opinions, reviews, analyses and recommendations are the author’s alone and have not been reviewed, endorsed or approved by any bank, lender or other entity. Learn more about our editorial policies and expert editorial team.