Loans give you extra funding when you don’t have enough money in your bank account. Many people use loans to buy homes and cars, but some expenses don’t have large price tags. For example, you may only need a few hundred dollars to cover an emergency expense, and it wouldn’t make sense to take out a loan for thousands of dollars. Instead, a $500 loan may make more sense for your financial needs, and if you need one of these loans, you’re in luck. Borrowers who need an additional $500 have several choices. We’ll share your options and how to secure favorable loan terms.
Do Lenders Offer $500 Loans?
Several lenders offer $500 loans, and not all of them do credit checks. However, you probably won’t find a $500 loan at a traditional bank. Banks provide larger loan amounts and are not the best choice for emergency expenses. In addition, it can take too long to receive traditional financing, but you can receive funds on the same day if you work with an online lender.
Where Can You Get a $500 Loan?
Many online lenders offer $500 loans and make it easier to obtain financing. They won’t ask for as much information as a traditional bank, and you can receive same-day funding. You can also reach out to pawnshops and payday lenders about receiving extra cash. These options have higher interest rates than conventional loans. You can avoid the high interest if you borrow money from a friend who you promise to repay. Not everyone has that option, and getting funds from a friend can take a while, but some borrowers may want to consider that choice.
What Types of $500 Loans Are Available?
$500 loans are plentiful. Borrowers can select from various loan types, but some have better terms and requirements than others. Let’s examine some of your loan options so you can decide on the right one for you.
No Credit Check Loans
You don’t need a good credit score to get the financing you need for an emergency expense. Many online lenders provide no credit check loans. You can get a $500 loan this way, but you can request a higher loan amount if necessary. Even if you don’t have to provide your credit, you’ll still need other details to qualify for this loan. Most lenders will ask for income verification, employment details, and identification.
Bad Credit Loans
A bad credit loan makes capital more accessible to consumers with poor credit scores. Borrowers with bad credit histories have fewer opportunities at traditional banks, and online lenders are a good alternative. You can get a bad credit loan and repay the principal over monthly installments. Just like a no-credit-check loan and the other financing options on this list, you can borrow more than $500 if necessary.
Installment Loans
Installment loans split the loan repayments over several months. You can get a lower interest rate if you have good credit, but these loans also cater to people with low credit. A shorter loan term gives you less time to repay the loan, but you’ll save money on interest. Consider a lengthier loan term if you feel nervous about making loan payments. Although you will pay more interest, dispersing the principal across a longer term will reduce your monthly payments.
Emergency Loans
Emergency loans are personal loans that you get quickly because of emergency expenses like medical bills. These loans feature competitive rates and get repaid over monthly installments. A high credit score is a recurring theme for consumers who want lower interest rates, but you can qualify for an emergency loan even if you have a bad credit score. The great thing about any loan is that making on-time payments will improve your credit score. In addition, most lenders report your activity to the major credit bureaus, and a higher score will help you get better financing terms in the future.
Cash Advances
Some mobile banking apps provide complimentary cash advances that you can use as needed. For example, you can borrow a few hundred dollars, and the mobile banking app will use future deposits to repay the cash advance. You can also get a credit card cash advance, but this approach comes with a higher interest rate. Some mobile banking apps offer 0% APR for their cash advances, making them the more affordable choice.
Payday Loans
Payday loans are easy to get and provide quick cash. The idea behind payday loans is that you repay the loan with your next paycheck, but some people let their loan balances linger for several weeks. While you will get cash right away even if you have poor credit, payday loans feature triple-digit interest rates. If you don’t pay the principal quickly, you can end up paying far more through interest than the amount you borrowed for the loan.
Things to Consider When Getting These Types of Loans
You can get same-day funding for some of these loan options, but that doesn’t mean you should rush into the loan application process. Knowing what you want in a loan can save you time and money. Having goals in mind will help you compare lenders and see which ones have the best offers for your needs. Here are some important details to consider before applying for a loan.
Interest Rate
Interest rates significantly affect how much you pay over the loan’s lifetime. A high interest rate will keep you in debt longer and take up more space in your budget. Some borrowers get overwhelmed by high interest rates from payday loans and similar financial products. Those high interest rates can result in you paying more than the loan’s principal. Interest rates are the decisive factor for many borrowers. Shop around and find lenders offering lower rates, then narrow the list with the other parameters.
Total Fees and Charges
Late fees, origination fees, and other charges add up. Some lenders try to get sneaky and disguise an expensive loan by offering a low interest rate. Some of these fees may never apply to you. For instance, if you make every loan payment on time, you won’t have to worry about the late fee.
Loan Terms and Other Conditions
You can borrow $500 from many lenders, but each of those lenders will expect you to repay the principal with interest. Before working with a lender, consider how much time you need to repay the principal. Some lenders will want the payment within a few weeks, while others will let you stretch the payment plan over several months. Some loans will also require collateral, something you would have to give up if you can’t make loan payments. Collateral increases your risk but also lowers your interest rate.
Loan Requirements
Every lender has requirements, but their rules vary. Traditional banks will look at your credit score and have a minimum requirement. These loans may seem too daunting for borrowers with low credit scores. A no-credit-check loan will have a higher interest rate, but you will have easier access to cash.
How Quick You Can Get Your Loan
How soon do you need the funds? Some borrowers can wait a few days to receive $500, but other consumers need the cash today. Unfortunately, traditional banks aren’t the best solutions for urgent needs since their loan application process and money transfer can take multiple days. Instead, online lenders offer quicker turnarounds, with some of them providing same-day funding.
Credit Score Impact
A short-term loan may require a hard credit check that reduces your credit score. Some financial institutions and direct lenders do not run hard credit checks, which can keep your score where it is. However, paying off your loan on time can improve your credit score and help you secure a lower annual percentage rate for future loans.
Repayment Terms
Many traditional lenders give their customers the flexibility to select payment terms that range from a few months to multiple years. Short-term loans usually have tighter term lengths that last from 6-24 months. You can get more years added to a long-term loan to minimize your monthly payments.
Why You Might Need a $500 Loan
A $500 loan can be a better option than alternative financing methods for many people who need to cover a short-term expense. These financial products offer competitive rates and give you the opportunity to build your credit history with on-time payments. Some of these loans also come with quick approval so that you can receive your cash sooner.
How to Get a $500 Loan
It’s straightforward to get a $500 loan. Borrowers can choose from many lenders, most of which follow the same process. You can follow these steps to get a $500 loan.
Online Application Process
Many lenders offer an easy online application process that only takes a few minutes to complete. It is a good idea to apply for multiple loans to gauge competitive interest rates. Many lenders offer fast access to five-hundred-dollar loans.
In-Person Application Process
You will have to visit your local bank or credit union to submit an in-person application. You may become more familiar with the people who work at your local branch. However, it takes more time to go through the in-person application process.
Required Documentation
You will have to provide your government-issued ID, Social Security Number, proof of income, and other information. Lenders will outline their requirements when inviting you to fill out an application.
Alternatives to $500 Loans
While a $500 loan is one of the best options available for people who need quick cash, it is a good idea to consider the alternatives. These are some of the other choices to consider if you need some extra cash.
Borrowing from Friends or Family
A friend or a family member may be happy to give you a few hundred dollars as long as you pay them back. This arrangement can be better than a small loan since you won’t have to pay any interest. Some friends and family members may give you the cash right away, but it can take a few days or weeks in other cases. The timeframe depends on how responsive your friends and family members are to your request.
Credit Card Cash Advances
You don’t have to go through a hard credit check or any delays if you opt for a credit card cash advance. There’s less friction if you pursue this option. However, repaying a cash advance will typically do nothing for your credit score. Furthermore, many credit card companies charge high rates and fees for each cash advance.
Local Financial Assistance Programs
Some people may qualify for help from a local financial assistance program for small purchases. You should check your local options and see if this is a viable path for you.
FAQs About How To Get A $500 Loan
You can borrow $500 quickly with a small loan or a credit card cash advance. A cash advance provides immediate access to $500, while a small loan can take 1-3 business days to get approved.
Consumers can choose from many cash apps like Dave and MoneyLion to borrow $500 or more. The amount you can borrow depends on your direct deposit history, and it can take a few weeks or months to build up to a $500 cash advance on any of these apps.
Some lenders do not have credit score requirements for $500 loans, but you’ll also end up with higher rates and terms. A fair credit score can give you plenty of choices, but you will receive the most competitive interest rates with a good or excellent credit score.
Each lender has a different eligibility criteria. Getting a $500 loan is possible even if you have bad credit or no credit history. However, you will likely face higher interest rates and fees if you get a no-credit loan.
