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California Payday Loans Lender 2020

Looking for a payday loan in California? State lending laws cap payday loans to $300 in California, with a maximum term of 31 days.
Kane Pepi
Author: Kane Pepi

Last Updated: March 27, 2020
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California Map

Are you looking for a payday loan in California? If so, you should know that the state has some of the strictest lending laws in the US. Although payday loans are not prohibited in California per-say, there are heaps of considerations that you need to be made aware of.

Notably, the largest amount that you can borrow is $300, and interest is capped at 15% for every $100 borrowed. If that doesn’t sound sufficient to meet your financing needs, there are heaps of other loan options available to you. This includes short-term loans, personal loans, and even auto title loans.

If you fancy finding the right loan package for your individual needs, be sure to read this guide on California Payday Loans Lenders in 2020. Not only will we break down the laws surrounding payday loans in California, but we’ll also discuss some alternative options.

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    Note: Never take out a payday loan in California unless you are 100% confident that you can afford to meet your repayments. While strict lending laws limit the amount you can pay in late payment fees, this can still make the loan super-expensive.

    What are the Laws Surrounding Payday Loans in California?

    California Payday Loans Lender

    Unlike a number of other states in the US – which decided to outlaw payday loans in their entirety, California instead decided to impose certain limits on lenders. This was with the view of protecting consumers from unethical lending practices. Referred to in the legislation as ‘Deferred Deposit Transactions’, payday loans in California are capped at $300 per loan.

    This makes sense, as a loan of more than $300 shouldn’t be required to see you through until the end of the month. With that said, if you do need to borrow a larger amount, you’ll need to consider an alternative option. The state of California has also placed restrictions on the amount of interest that payday loan lenders can charge.

    This amounts to 15% for every $100 borrowed, or an annual APR of 460%. In layman’s terms, this means that you will pay a maximum of $15 in interest per $100, so a $300 loan could cost $45. It is also important to note that payday loans come with a maximum term of 31 days.

    Once again, anything longer than this and you’ll need to consider a short-term loan or a personal loan. Those taking out a payday loan are not allowed to apply for an extension of the loan, nor can it be rolled over. The most that lenders can charge in late payments fees is $15.

    Note: There is no minimum payday loan term per-say, so this will vary from lender-to-lender. You will need to borrow the funds for at least 7 days, although you’ll also have the option of paying it off early if you have the means to do so.

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    Alternatives to Payday Loans in California

    Although payday loans are perfectly legal in California, they might not be suitable for all financial circumstances. For example, if you need to borrow more than the $300 that payday loans allow, you’ll need to consider an alternative option. Similarly, if you need to borrow the funds for longer than the 31 days that payday loans permit, once again, you’ll need to consider a different financing option.

    With that being said, we’ve listed the main alternative loan options that you have at disposal as a California resident.

    Short-Term Loans in California

    You will be afforded more flexibility if opting for a short-term loan over that of a payday loan. Firstly, you’ll be able to borrow much more than $300. Secondly, short-term loans allow you to borrow the funds for longer than 31 days. As such, this might be suitable if you’re looking to repay the funds over a number of months.

    In most cases, short-term loans start with terms of 3 months, up to a maximum of 1 year. Anything longer than this and you are in personal loan territory. In terms of the interest rates, this will ultimately depend on your underlying credit profile. For example, if you’re in receipt of excellent credit, a good income, and you’ve got a history of always repaying your loans on time, then you should be able to get some competitive interest terms.

    On the contrary, if your credit profile is somewhat damaged, you’ll pay similar rates to that found in a payday loan package. Don’t forget, this is capped at $15 per $100 borrowed. Finally, most short-term loan applications can be completed online, and approved applicants will often see the funds transferred within 1 working day.

    Note: Make sure that your chosen short-term loan provider holds a California state lending license. This is a requirement for all lenders operating in the state.

    Pros and Cons of Short-Term Loans in California

    Pros:

    • Borrow the funds for longer than a payday loan permits
    • Obtain a loan of more than $300
    • Some lenders can transfer the loan funds on a same-day basis
    • Complete the loan process 100% online
    • Interest rates capped by California lending laws
    • Most loans are unsecured
    • Credit profiles of all shapes and sizes considered

    Cons:

    • The overall interest that you pay can work out more expensive if borrowing the funds for longer
    • Some lenders will ask for supporting documentation

    Personal Loans in California

    California Payday Loans Lender

    An additional financing option available to you in California is a personal loan. These operate in a similar nature to that of a short-term loan, insofar that you will get to make your repayments over a longer period of time. However, while short-term loans are usually capped to 12 months, personal loans allow you to repay the money over a number of years.

    As such, you can typically borrow a larger amount when opting for a personal loan, so this particular option is ideal if your financing requirements are much higher. Personal loans are unsecured, so there is no need to put anything up as collateral.

    In terms of the interest, lending laws in California dictate that loans of between $2,500 and $10,000 cannot come with an APR that exceeds 36%. While some lenders will seek to charge the maximum amount, others will offer much more competitive rates if you’ve got a ‘good’ or ‘excellent’ credit score.

    Note: Personal loan providers operating in California will typically charge you a fixed rate of interest. This means that your monthly repayments will always amount to the same figure.

    Pros and Cons of Personal Loans in California

    Pros:

    • Interest rates are capped at 36% APR for loans between $2,500 and $10,000
    • Borrow the funds over a number of years
    • Your monthly repayments will be smaller in comparison to a shorter-term loan
    • Funds transferred within 1-2 working days
    • Those with a ‘good’ or ‘excellent’ credit score will benefit from competitive rates

    Cons:

    • Not suitable for smaller loan sizes
    • You could end up paying more interest when borrowing the funds for a longer period of time

    Auto Title Loans in California

    Picture of car to represent autoloansAre you a car or motorbike owner living in the state of California? If so, you might benefit from much lower interest rates when opting for an auto title loan. The reason for this is that the lender will be much more inclined to offer you more favorable rates as you are putting your vehicle up as collateral. As such, the lender knows that they have the legal remit to seize your vehicle in the event of non-payment.

    In terms of the fundamentals, you will be able to borrow an amount proportionate to the value of your car or motorbike. You can find this out by entering your vehicle registration number at the lender’s website, and then they’ll let you know how much you can borrow. The auto title loan option is also a great alternative to California payday loans. This is because you can still obtain a better interest even if your credit profile is damaged.

    Note: You will need to be named on the logbook of the car or motorbike that you wish to put up as collateral. In fact, you will need to upload a copy of this to get an auto title loan in California, so make sure you have the document to hand.

    Pros and Cons of Auto Title Loans in California

    Pros:

    • Perfect for credit profiles of all shapes and sizes
    • Borrow an amount proportionate to the value of your car or motorbike
    • No need for the lender to keep the car
    • Funds transferred within 1-2 working days
    • Reduce your interest payments through a secured loan
    • Get an instant quote by entering your vehicle registration number

    Cons:

    • You can have your vehicle repossessed if you default on the loan
    • The car valuation might be less than you had hoped for

    Am I Eligible for a Payday Loan in California?

    You will need to meet a range of minimum eligibility requirements to get a loan in California. With that said, the exact requirements will vary from the provider-to-provider. For example, if opting for an auto title loan, your name must be mentioned on the logbook of the vehicle. Similarly, your credit report is likely to be checked by the lender if opting for a personal loan.

    We’ve listed the main requirements that lenders in California typically ask for to be eligible for financing.

    Regular Source of Income: As per California state lending laws, you need to have a regular source of income.

    Minimum FICO Score: Depending on the type of loan, you might need to meet a minimum FICO score.

    California Resident: All loan applicants must be a resident of California.

    18 Years or Older: You also need to be aged at least 18 years old to get a loan in California.

    How can I get a Payday Loan in California Today?

    Are you based in California and looking for a payday loan today? If so, follow the quickfire guidelines outlined below.

    Step 1: Choose a California Payday Loan Lender

    First and foremost, you need to choose a California payday loan lender that meets your individual requirements. Due to the restrictions imposed by state legislation, there is very little to differentiate payday loan lenders in California. This is because you will not be able to borrow more than $300, nor can the term of the loan exceed 31 days.

    The interest will be capped at $15 for every $100 that you borrow, but it’s worth taking a look at the eligibility requirements of the lender in question, as well as how long the platform takes to forward your loan funds once approved.

    Step 2: Apply Online

    Once you have chosen a California payday loan company, you will need to head over to its website to begin the application process. You’ll initially be asked how much you wish to borrow and for how many days. You will also need to stipulate the date in which you next get paid.

    Next, you’ll need to provide some personal and financial information – which includes your:

    • First and Last Name
    • Home Address
    • Date of Birth
    • State ID Number
    • Contact Details
    • Income After-Tax
    • Name and Address of Employer
    • How Long You Have Lived at Current Address

    Step 3: Review Loan Terms

    Most payday loan lenders in California will be able to give you a decision in less than a minute. This is because they will cross-reference your information with third-party sources. As long as it can verify your data automatically, you’ll receive a decision on-screen. If approved, this will include your lending terms – such as how much interest you will need to pay, and on what date you need to repay the loan in full.

    Note: You will be under no obligation to take the loan at this stage, so if you’re not happy with the terms, you can simply walkway.

    Step 4: Bank Details and Digital Loan Agreement

    If you do want to proceed with your pre-approval rates, you will then be asked to enter your checking account details. This is the bank account that you wish the funds paid into and you will likely need to authorize an electronic debit agreement.

    This allows the California lender to take your loan repayment directly from your account. As long as there is enough money in the account, you won’t miss the payment. Finally, once you have signed the digital loan agreement, the payday loan company should transfer your funds within one working day6.

    Conclusion

    In summary, although California has some of the strictest lending laws in the US, the state still permits payday loans. As such, you’ll have the option of fast and seamless funding – with most credit profiles considered. However, California payday loan companies must still comply with a number of lending limits. For example, the most that you can borrow through a payday loan is $300, and the longest term on offer is 31 days.

    Most importantly, the amount of interest that payday loan firms can charge in California is also capped. This amounts to $15 in interest for every $100 borrowed, or an annual APR of 460%. With that said, you still need to ensure that you have the required funds to repay the loan on time. While there is only so much that the lender can charge you, falling behind on your repayments can damage your credit score. As such, always tread with caution before applying.

    Apply for a Payday Loan Now! | Best Payday Lender 2020

    Our Rating

    Viva payday loan app company logo
    • Loans From $100 to $15,000
    • Instant Application & Approval
    • Bad Credit Considered
    • Lenders From All 50 US States Onboard
    Viva payday loan app company logo

    FAQs

    Can I apply for a payday loan online if I live in California?

    Yes, payday loans are perfectly legal in California. State lending laws are still tight though, so lenders are capped in how much they can lend you, and at what interest rate.

    How much interest can payday loan companies charge in California?

    As per state lending laws, payday loan companies in California can charge a maximum interest rate of $15 per $100 borrowed, or an annual APR of 460%.

    What late payment fees can California payday loan firms charge?

    ’In a similar nature to the underlying interest rate, payday loan companies in California are capped at what they can charge you in late payment fees. This stands at a maximum of $15 per loan agreement.

    How long can I take out a payday loan for in California?

    Payday loans in California can be taken out for a maximum of 31 days. Moreover, you will not have the option of deferring the loan, nor can you roll it over.

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    Kane Pepi

    Kane holds academic qualifications in the finance and financial investigation fields. With a passion for all-things finance, he currently writes for a number of online publications.