Right now, people throughout the Golden State are searching for installment loans to meet their needs. While we offer a free loan request service for people living in most U.S. states, we do not currently work with those living within the state of California. You can read on for general information about borrowing money in the Golden State.
Installment loans are unsecured and secured, short-term personal loans that are paid back over a period of time, usually over the course of several months. This is different from other short-term loans repaid in a single lump sum. The monthly payments go towards the interest on the loan and as well as the principal (the money borrowed). Some lenders offer an APR beginning at 4.84 percent. The actual APR you receive depends on the lender and your current situation.
California Personal Loans
People in California take out installment loans for a variety of reasons, including:
- Home improvements and repairs - California has some of the highest real estate prices in the nation. Homeowners with older homes might want to cash in by renovating their homes, selling them, and turning a nice profit. Other homeowners may simply wish to bring their homes into the 21st century. With a personal loan, these improvements can be a wise investment in your home.
- Car repairs - Californians pay more to fix their cars than people in most other states. The average cost of a car repair in California is $435. And that is only the cost of a ‘check engine light’ repair. More serious car issues could lead to repair bills in the thousands of dollars. With so many Californians dependent on their vehicles, not making the repairs is usually not an option. However, a personal loan is an option to help pay for costly car repairs.
- Emergency medical bills - A single medical emergency such as a broken leg can produce financial setbacks. The average cost of a visit to the emergency room costs 40 percent more than the average month’s rent. Paying the bill might not be possible, but leaving the bill unpaid can lead to late fees, extra charges, and a dip in your credit score. Taking out a personal loan is one way to get the bill paid.
- Credit card debt - The average credit card debt in California is over $3,000. If that is the average, that also means that some Californians owe much more on their credit cards. Taking out a low-interest personal loan may help these people get clear of credit card debt sooner and help them save money on interest.
California State Economy
With almost 40 million residents, California is the most populous state in the nation.
California also has the largest economy in the nation, making up over 14 percent of the entire US GDP. In fact, if California were its own country, its economy would rank sixth in the entire world, beating out countries like France, Italy, India, Canada, and Turkey.
Tourism is one of the biggest industries in the state. California has National Parks, hundreds of miles of coasts and world-famous tourist attractions like Disneyland and the San Diego Zoo. In 2016, the state attracted over 260 million visitors. Tourism spending in California was over $126 billion in 2016 and travel spending directly supported 1,096,000 jobs.
Imports and exports account for a large piece of the Golden State’s economy. Trade and international commerce account for a fourth of California’s economy. The state’s top exports are computers and electronic products.
Another important industry is agriculture. California’s farmers and ranchers create over $40 billion in revenue each year.
As mentioned above, the cost of housing in California is one of the highest in the US. The average California home costs almost $450,000, more than twice the national average. Renting is also costly as well with Californians spending over $1,250 per month on rent, nearly 50 percent more than the national average.
When searching for personal installment loans, being cautious can keep you from being scammed. Below are some red flags which may indicate a scam:
- Potential lenders who offer guarantees of loans regardless of your income, employment status, or credit history
- ‘Advance-fee’ loan offers which require you to pay money to start the lending process
- Unsolicited loans offered by phone or email
- Lenders who are not licensed to operate in your state of residence
What to Consider Before Borrowing
Borrowing money can be a big deal for some people. If you live in the Golden State and are planning to take out a personal installment loan, there are some things to consider. First, familiarize yourself with the application process to gauge whether or not you are eligible for a loan. Next, review the lender’s terms and conditions to make sure you understand your responsibility when taking out a loan.
The California Department of Business Oversight offers information about consumer loans. Visit the website to educate yourself and learn more.