So you need a quick bit of cash? It doesn’t matter what you need it for; there are hundreds of annoying little things that can crop up… Maybe a medical bill that needs paying? Or your car’s blown again? Or maybe you just need a bit of help paying your rent this month.
If you’re in this situation, you’re not alone… life happens. Thankfully there are many solutions if you need short-term financial help. If you don’t have any savings or aren’t lucky enough to have family and friends to fling you 500 Dollar, you can take out a loan.
In this no b*llshit guide, we’re going to check out everything there is to know on how to get a 500 dollar loan, so although it may not be something you want to do, if you can pay it back on time, these small short-term loans can be super handy lifesavers. We have a ton to get through, so let’s dive right in.
How to Get a 500 Dollar Loan Table of Contents
Types of 500 Dollar Loans
A 500 Dollar loan, usually called a payday loan, can be broken down into three main types. Personal loans, payday loans, and car title loans are all slightly different in how you borrow and pay back.
This loan allows you to borrow 500 Dollar or more and can be paid back via monthly installments. Most online lenders offer this type of loan, and it’s great if you don’t quite have the cash to pay it back in one go.
These loans have a bad reputation due to astronomically high-interest rates. However, they’re very easy to get, don’t require a thorough credit check, and the cash is yours the same day. These loans, though, need to be paid back quickly, especially if you want to avoid snowballing interest rates.
Car Title Loans
This means you essentially pawn your car while you borrow the money but are still able to drive while you do so and get it back when you pay the loan off in full. If you don’t keep up with the monthly payments… your car is gone. Now you know some of the common types of 500 Dollar loans, what can you use them for?
What Can You Use a 500 Dollar Loan For?
You can use short-term loans for unexpected emergencies or when you’re struggling to pay your next set of bills. So no, unfortunately, you can’t take out a loan for a trip to Ibiza with the lads. Sucks, huh?
You can use these loans for short-term assistance such as medical bills, car repairs, damage to essentials, forgotten bills, and routine payments you’re struggling to pay. You should be very careful when taking out payday loans because you’re ALWAYS going to pay more than you borrow, and the longer you don’t pay, the more you pay in interest.
How Does My Credit Score & Credit Report Affect My Ability to Get a 500 Dollar Loan?
Although payday loans do affect your credit score, when it comes to getting a 500 Dollar loan, you shouldn’t have any trouble getting one, even with a bad credit score. When you apply for these loans, the lender simply checks how you’ve previously dealt with borrowing. Asking – Have you taken out these types of loans before? And have you paid them back on time?
Essentially, they’re checking how likely you are to pay them back, so as long as you haven’t taken out hundreds of these loans before, we’re assuming you haven’t. If you’re reading this, you’ll have no trouble. Although taking out a short-term loan will affect your credit score, your score won’t affect your ability to take one out.
How to Get a 500 Dollar Loan With Bad Credit
If you’re wondering what the heck your credit score is, you can use an online tool to check it.
Lenders are generally ok with a bad credit score, but these loans are slightly different compared to if you had good credit. Affectionately dubbed “bad credit payday loans” these come with stupidly high-interest rates. Yep, your credit score won’t affect you getting a loan, but it will certainly change how much you pay back!
If you’ve got a bad credit score and really need a short-term loan, don’t stress; just make sure you can pay it back on time to avoid the interest rates going mental and turning a $300 into a $600 repayment. You may need to look to smaller businesses for bad credit loans as many large firms don’t offer these loans.
Top Online Lenders For a 500 Dollar Loan
While you can get short-term loans from banks and credit unions, it can take up to 7 days to get the cash, whereas, from an online lender, you can have the cash the same day. There are hundreds of online lenders available online. However, you should always be looking for the best/most reputable companies when taking out a loan… some of our favorites include:
- Money Mutual
- Lending Club
All of which are trusted companies offering short-term payday loans. Now you know where to grab a loan; it’s the part you’ve been dreading — time to look at the interest rate. Jeez, get ready!
What Are the Average Interest Rates on a 500 Dollar Loan?
This is the big one when it comes to payday loans. Generally speaking, interest rates on these loans are stupidly high, as you’d expect. Rates can be anywhere from… wait for it… 300% to 600%. Yep, crazy, we know!
With rates like that, it’s no surprise that so many people struggle to pay back short-term loans. Did you know that according to The Consumer Financial Protection Bureau, 80% of payday loans aren’t paid within two weeks? Interest rates can vary massively depending on your state, with some states capping interest rates at 36%, while 18 states have banned these loans altogether.
Rates will also change depending on your credit score. According to Bank Rate a credit score of 300-629 = 28.5% – 32%. Whereas a credit score between 720 and 850 = 10.3% – 12.5%.
How Long Does It Take to Get a 500 Dollar Loan?
This depends on who you get your loan from. You can take out short-term loans with your local bank or credit union, which usually takes around seven business days for you to get your hands on the cash. While online payday loans will give you cash access to that sweet cash, the same day you take out the loan.
What Fees Come With a 500 Dollar Loan?
As you’d expect, some fees come with taking out payday loans. The most important fee you need to know is APR, which is what you’re going to pay on top of the amount you’ve borrowed. For most payday loans, this is around 20%. Meaning if you borrow 500 Dollar, you will need to pay back $600.
With most payday loans, the whole amount (including interest) needs to be paid back on your next payday. If you can’t make this payment, interest rates go mad! This is called ‘roll over’ and means you’ll pay on the following payday but with astronomically higher interest rates as well as rollover or late fees.
Ideally, you should always avoid ‘rolling over’ to avoid this horrible debt-producing snowball effect. You’re better off finding alternatives such as borrowing from friends and family or getting a debt management plan.
Will a 500 Dollar Payday Loan Affect My Credit Score?
In short – Yes, a 500 Dollar payday loan will certainly affect your credit score. Whenever you go to borrow money, everything is recorded on your credit report. This report is a list of all the money you have ever borrowed and how/when it’s been paid back.
Your credit report is very detailed and can include inquiries, types of credit, terms of credit, credit limits, repayment history, and any overdue amounts. This means that even inquiring about a payday loan WILL go down on your report and affect your credit rating. If you’re worried about a payday loan affecting your credit score, explore some of the alternative options available.
How to Get a 500 Dollar Loan in a Nutshell
So there we have it, everything you need to know to get a 500 Dollar payday loan. If you NEED fast cash, payday loans will do the trick. However, be very careful. The last thing you want is to borrow 500 Dollar to pay back double the amount because you can’t make repayments.
If you’re waiting for your next paycheck and your car breaks down on you, insert a lifesaving payday loan here. Otherwise, there are many other options to explore for repaying debts, such as borrowing from friends and family, who (hopefully) aren’t charging you interest, or you can find professional debt repayment advice.
If you found this article helpful, make sure you share it with someone who could do with a 500 Dollar loan.