Installment loans, in their simplest form, are unsecured loans. Meaning you don’t have to put up anything for collateral. Much like California payday loans, you can get quick cash and deal with a high interest rate. The good news is that installment loans will let you access higher amounts of money and you can repay the loan over a longer time. Unlike online payday loans, bank or installment loans often need a good credit history to get approved for a loan of $1,000 or more.
Legitimate Installment Loan Companies in California
There are many reputable lenders offering installment loans in California. Many of these same lenders provide online payday loans and cash advances in the Golden State to people with below-average credit scores. As always, you will want to stay away from dangerous companies. How can you tell who the questionable short term lenders are? Here are some signs to keep an eye out for. Avoid lenders who:
- Charge Application Fees: There is no reason you should have to pay to apply for a payday loan in California. This applies to California payday lenders and any other secured direct lenders.
- Have Astronomical APRs: Installment loans do not have to be as bad as online payday loans. But there are predatory lenders with APRs in the triple digits. Look at your other financing options and avoid a cash advance.
- Recommend or Require Insurance: These are expensive and do nothing to protect you. Instead, it covers only the online lender. They add more to the loan cost than they would raise your APR high enough to be illegal in CA. They also aren’t required to add the policy costs to your APR calculations, which is the only reason they can get away with it. Stay clear of these lenders.
- Recommend Loan Renewals: Beware of lenders who try to lure you into deeper debt. You’re doing yourself no favors by renewing a loan. Taking this extension will cost you more and more as time goes on.
- Guarantee A Loan without Your Information: Be concerned if a lender promises your loan will receive early approval. Most companies will do some underwriting and check your credit report. This also includes employment history or other qualifications like checking account verification. Most reputable companies must do a credit check or personal history investigation. Unfortunately, not everyone qualifies for installment loans.
- Offer Unsolicited Loans: Your best bet is to look for reputable lenders, not accept loans from people who offer to everyone. Start with a company that the Department of Finance licenses. Check that your lender has an active California Finance Lender License. There is a good chance that the terms will not be as favorable for companies seeking you out.
- Pile On the Pressure: Avoid any payday lender who pressures you to borrow more money than you need. This applies to a company that tries to get you to sign documents before you’ve had time to consider them. Most California payday lenders and car title companies have limits on the amount you can borrow. The state sets these limits.
So, how can you find legitimate lenders and companies you can trust? Here are tips on how to find a reputable installment loan company in California:
An installment loan can significantly help anyone who needs cash for emergency expenses. Sometimes, circumstances make it necessary to get through a cash flow crunch that could last years. In these situations, this loan works better than any of the alternatives many people have available. Another option is a business loan if the need for cash is not personally related. This financing method is available for locals financing an existing or new business. The trick is to get the most favorable terms for your particular circumstances. That means shopping around and comparing lenders. Here is what you need to consider when seeking out California payday loans and installment loans:
- APR: The best lenders will have these stated on their websites. Be aware these rates can vary according to credit score and past bankruptcies. Some online short term lenders will have higher rates and worse terms. Compare that to what you see with local storefront companies.
- Fees: Compare all the costs of getting your loan and compare between lenders.
- Term Length: The shorter, the better, but though longer loans cost more, their payments are lower. Installment loans will have longer payoff times. California payday loans will have a shorter payoff term.
- Loan Amount: Every dollar you borrow adds to your APR, so try to borrow only the least amount you need.
Look for the best installment loan offers in California.
Use the identical loan amounts and term lengths when comparing companies in the California Payday Loans database. Consumers who have bad credit may want to apply with other online companies. Some firms provide car title loans and payday loans as a fallback. There are many ways to go about comparing online loan companies in California. As always, we recommend our site as a good starting point to find a top local payday loan lender. Start with an application for installment loans and move on to payday loans online in California if that’s the only option. People with good credit will have other choices for California payday loans. Someone with decent credit can walk into their local bank or credit union. We know hundreds of bank lending avenues in Los Angeles and San Diego! Options include your standard credit union loan and, of course, installment loans.