Your options in California
- Credit union personal loan. Often a strong option if you can join and have fair to good credit.
- Online lender. A way to compare a range of rates. Check the license before you sign.
- Nonprofit debt management plan (DMP). Not a loan. One payment to an agency that pays your creditors, usually at reduced rates.
- Balance transfer card. Can be cheapest for strong credit if you pay it off during the intro period. See debt consolidation vs. balance transfer.
How debt consolidation works
You use one new loan to pay off several higher-rate debts, then repay that loan in fixed monthly payments. It saves money only when the new APR, fees included, is lower than what you pay now and you do not run the cards back up. Read what debt consolidation is for the basics, and test your numbers with our Should I consolidate? calculator.
Option 1: California credit unions
California has many large credit unions that make personal loans to members. Lendifi is not paid by the credit unions named here. We list them because they are real options worth checking.
- Patelco Credit Union lists personal loans on its website.
- SchoolsFirst Federal Credit Union serves school employees and their families.
- Golden 1 Credit Union is one of the largest credit unions based in California.
We do not quote rates here, because we only publish a rate copied from the lender's own page on the day we update the guide. Check each one's APR range, fees, terms, and membership rules directly, or find others with the federal credit union locator. Ask every lender about origination fees and whether there is a prepayment penalty.
Option 2: online lenders
Many online lenders serve California borrowers. Comparing several helps you see the real range of APRs and fees. Our guide on how to compare personal loan offers walks through it, our personal loans page covers loan basics, and our debt consolidation loans page covers rates and fees.
A note on Lendifi itself: Lendifi is a comparison and education site, not a lender, and this page does not make or arrange loans. We cannot promise any offer or approval. You can read how we make money and our editorial policy.
Option 3: a nonprofit debt management plan
A DMP is a repayment plan, not new credit. A credit counseling agency negotiates with your card issuers and then you send it one monthly payment, which it distributes to your creditors.
In California, companies that pay debts on your behalf under a debt management or debt settlement plan are covered by the Check Sellers, Bill Payers and Proraters Law (Financial Code section 12000 and following). DFPI explains that a nonprofit credit counseling agency may rely on a licensing exemption under Financial Code section 12104 if it meets that section's requirements and files the required documents. DFPI publishes a list of agencies that have filed, and says an organization that is not on the list may not administer a DMP or debt settlement plan for California residents unless it is licensed as a general prorater.
DFPI also states that, among other requirements, the exemption limits monthly DMP fees to the lesser of 8% of the amount paid to creditors each month or $35, with a possible $50 education and counseling fee. DFPI notes that it does not grant the exemption and makes no representation that a listed agency complies. If you are unsure, call DFPI at 1 (866) 275-2677. The U.S. Trustee Program also keeps a list of approved credit counseling agencies, which DFPI points consumers to.
Compare a DMP with debt settlement in our guide to debt consolidation vs. debt settlement.
California rules that matter to you
Who regulates lenders. The California Financing Law (Financial Code section 22000 and following) requires the licensing and regulation of finance lenders and brokers that make and broker consumer and commercial loans, with some exceptions, according to DFPI. The law also prohibits misrepresentations and deceptive acts in making and brokering loans. Under section 22004, a "broker" includes anyone in the business of negotiating or performing any act as broker in connection with loans made by a finance lender. Banks and credit unions are chartered and supervised separately.
A rate limit on $2,500 to $10,000 loans. Financial Code section 22304.5, added by AB 539 effective January 1, 2020, says that for a loan of a bona fide principal amount of at least $2,500 but less than $10,000, a CFL finance lender may not charge more than an annual simple interest rate of 36% plus the Federal Funds Rate. The Federal Funds Rate used is the one published by the Federal Reserve in its H.15 release and in effect on the first day of the month before the month the loan is made. So the ceiling moves with the Fed's rate, and it is 36 percentage points above that rate.
The same section requires these lenders to report your payments to at least one nationwide credit bureau and to offer you a free, optional credit education program before they disburse the loan.
This guide does not cover every rule for loans under $2,500 or over $10,000, or for lenders outside the CFL. Ask any lender which law its loan is made under, and check the license as shown below. This is general information, not legal advice.
What the rate difference costs
A legal rate is not the same as a good rate. Here is an illustrative example of a $5,000 loan repaid over 36 months, with no fees, computed by Lendifi. These are not offers.
- At 15% APR: $173.33 a month, $1,239.76 total interest.
- At 30% APR: $212.26 a month, $2,641.28 total interest.
The higher rate costs $1,401.52 more over the life of the same loan. That is why comparing APRs matters even when every offer is within the legal limit.
Run your numbers first
See whether consolidating would actually save you money.
Open the calculator →How to check a California license
- Get the lender's or broker's exact legal name. It is often in the website footer or loan documents.
- Search DFPI's Regulated Entities List. DFPI suggests putting the exact name in quotation marks and using the filters to narrow results.
- Confirm the license type (for example, California Financing Law) and that the name matches the company you are dealing with.
- For loans secured by your home, DFPI says CFL licensing information is also available in NMLS Consumer Access.
- If you cannot find the company, call DFPI at 1 (866) 275-2677 before you share more information.
What to avoid
Payday loans and car title loans are poor tools for consolidating debt because of their high costs. DFPI publishes consumer guidance on auto title loans on its California Financing Law page. Also walk away from anyone who asks for a fee before you get a loan, promises approval, or pushes you to sign the same day. See our list of personal loan scams and red flags.
From our founder: when I consolidated about $10,000 of card debt with a fixed-rate personal loan, I wanted my offers side by side and walked away from lenders who pushed. I only noticed the origination fee at signing. Wherever you live, read the fee line first.
Learn the basics
Read how debt consolidation loans work before you compare.
Read the guide →Frequently asked questions
Sources
- DFPI, Consumer and Commercial Loans (California Financing Law). Accessed October 9, 2026.
- California Financial Code section 22304.5 (AB 539, 2019), text via Justia, 2025 California Code; official source leginfo.legislature.ca.gov.
- California Financial Code section 22004, text via Justia.
- DFPI, Check Out Your Credit Counseling Agency (Financial Code 12104 exemption, fee limits, filed-agency list). Accessed October 9, 2026.
- DFPI, Finance and Lending Education.
- DFPI, Regulated Entities List.
- U.S. Trustee Program, approved credit counseling agencies.
Reviewed by the Lendifi Editorial Team. Updated October 9, 2026.
Lendifi is operated by Apex Lead Group LLC. Lendifi is not a lender and does not make loans or credit decisions. We are an advertising-supported comparison service, and some links on this page are affiliate links through which we may earn a commission at no cost to you. Any rates, payments, or savings figures shown are estimates based on average market data and are not guarantees of approval or financing. Actual rates and terms are determined by the lender based on your full credit profile. See our Ad Disclosure for details.