How To Get a $500 Loan: Steps To Qualify and Where To Get One

Need to borrow $500 quickly? You may be able to get a $500 loan from a bank, credit union, online lender or payday lender, but your options depend on your credit, income, state and how soon you need the money. 

Approval can take anywhere from a few minutes to a few business days, depending on the lender. Payday and tribal loans can be expensive, with annual percentage rates (APRs) in the triple digits, while credit-union loans and personal loans may offer lower-cost alternatives.

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MoneyLion offers a service to help you find personal loan offers. Based on the information you provide, you can get matched with offers for up to $100,000 from our top providers. You can compare rates, terms, and fees from different lenders and choose the best offer for you.

Key Takeaways

• How to get a $500 loan? Match the source to your credit, timeline and budget: Banks, credit unions, online lenders and payday lenders all offer options at very different costs.

• Credit union PALs are the lowest-cost route: Capped at a 28% APR with an application fee of no more than $20, versus triple-digit payday APRs.

• Speed varies from minutes to five business days: Cash advances and BNPL are instant, while bank and credit union loans can take one to five business days.

• Payday and title loans are last resorts: APRs approach 400% for payday and around 300% for title loans, per the CFPB, and a title loan puts your car at risk.

• You'll need five basics to apply: A government ID, Social Security number, proof of income, an active bank account and current contact info.

• Sometimes skipping the loan is smarter: Side gigs, selling items or nonprofit aid through 211.org can cover $500 without interest.

Summary generated by AI, verified by MoneyLion editors

$500 Loan Options Compared Side by Side

The table below compares the main ways to access $500, so you can see the typical cost, funding speed and credit requirements for each option at a glance.

How Much Can a Credit Union Loan Save You Over a Payday Loan?

A $500 payday loan and a credit union payday alternative loan (PAL) can cost very different amounts, even though both get you cash fast. Based on the cost comparison above, a $500 payday loan runs about $75 in fees for a roughly two-week term, which works out to a triple-digit annual percentage rate (APR). 

A PAL from a federal credit union caps the application fee at $20 and the APR at 28%, spread over a longer repayment period. That means a PAL can cost a fraction of what a payday loan charges for the same $500, as long as you are a credit union member or willing to join one. The tradeoff is time: a PAL application can take a day or two, while a payday loan is typically same-day.

Learn More: How To Get a $2,000 Personal Loan: Step by Step Guide

1. $500 Personal Loans From Banks and Online Lenders

Credit score requirements vary by lender type:

• Banks: usually 660 or higher

• Credit unions: 620 and up, with some approving scores as low as 580

• Online personal loan lenders: typically 580 to 700

A personal loan is often better for borrowing larger amounts, like $2,000. However, some banks will give smaller loans.

• What it is: You receive a lump sum of cash that you repay over time, typically in monthly installments

• Speed to cash: 1 to 3 business days

• Typical fees or APR: 6% to 36%, with origination fees

• Credit check: Yes

• Best for: Those who need a predictable fixed payment schedule

• Risks: If you have a lower credit score, you may only qualify for higher APRs

APRs on a $500 personal loan from a bank usually run from 8% to 24%, with origination fees between 0% and 8% of the loan amount. Federal credit unions cap APRs at 18% on most personal loans, and payday alternative loans (PALs) are capped at 28% with an application fee of no more than $20. Online personal loans for $500 typically carry APRs from 6% to 36%, and some lenders charge origination fees of 1% to 10%.

2. $500 Credit Card Cash Advances

Although it's extremely expensive, you can get cash advances from your credit card. You'll usually have to pay a 3% to 5% fee upfront, then the cash advance APR until you pay the advance back.

• What it is: You withdraw cash against your credit limit

• Speed to cash: Instant

• Typical fees or APR: 3% to 5% fee, along with interest. APRs could be as much as 30%

• Credit check: No, as long as you already have the card

• Best for: If you have a credit card and need quick cash and can repay it fast

• Risks: There's no grace period, so interest begins accruing as soon as you withdraw. There may also be ATM or transaction fees

MoneyLion can help you explore a wide variety of credit card options tailored to different needs and preferences.

3. Peer-To-Peer Lending

Peer-to-peer lending is when platforms like Prosper match you with investors willing to fund your loan. Rates vary depending on your credit score, but you might snag $500 loans for bad credit if you can show steady income.

• What it is: You can borrow funds from individuals, rather than banks or traditional lenders

• Speed to cash: 1 to 5 business days after getting approved

• Typical fees or APR: APRs may be between 6% to 36%, along with origination fees that could reach up to 8%

• Credit check: Yes

• Best for: Those who want to compare their different options and can qualify for better rates

• Risks: You aren't guaranteed approval, plus the fees may be costly

4. Buy Now, Pay Later

Buy now, pay later (BNPL) programs let you split the cost into smaller installments through providers like Affirm or Afterpay. Be careful, though — missing payments can tank your credit.

• What it is: You can pay back purchases over time with smaller, regular payments

• Speed to cash: Instant

• Typical fees or APR: Often you'll find plans with no interest if paid back on time; there may be late fees or interest charged on any missed payments

• Credit check: Soft credit check

• Best for: Those who want to split the cost of a bigger purchase

• Risks: Don't miss a payment, as you can be charged fees and eventually you'll see a dip in your credit if you aren't able to keep up

5. Title Loans

Got a paid-off car? Some lenders let you borrow against it. But beware: fail to repay, and you risk losing your wheels.

• What it is: You take out a loan against your car if it's paid off

• Speed to cash: Same-day

• Typical fees or APR: APRs are typically high — around 300%, according to the Consumer Financial Protection Bureau (CFPB)

• Credit check: No

• Best for: Good for emergencies, if you aren't able to do the other options

• Risks: Your car is used as collateral, so if you don't repay, your car could be repossessed

6. $500 Payday Loans for Bad Credit

Payday loans are generally a last-resort option. Sure, you can get $500 today, but APRs often approach 400%, according to the CFPB. Bad-credit and payday lenders will approve borrowers with credit scores below 580, including people with no credit history.

Fees, rollovers, and short terms make these loans risky.

• What it is: Short-term loan, with a quick repayment period of about two weeks

• Speed to cash: Same-day

• Typical fees or APR: $10 to $30, per $100, generally

• Credit check: No

• Best for: An emergency situation and/or when you can't find any other option

• Risks: Seen as a last resort due to the high effective APR

Learn More: How Can I Get a $200 Loan Today?

How To Get a $500 Loan in 5 Steps

1. Check your credit score so you know which lenders you qualify with.

2. Compare loan types such as personal loans, credit union loans and payday alternatives.

3. Gather your documents, including your ID, proof of income and bank account details.

4. Apply with the lender that fits your credit and timeline, then wait for a decision.

5. Review the loan terms, sign the agreement and receive your funds by direct deposit.

What You Need to Apply for a $500 Loan

• Government-issued ID: A driver's license, state ID or passport.

• Social Security number: Required for a credit check and identity verification.

• Proof of income: Recent pay stubs, bank statements or benefit statements.

• Active bank account: A checking account for direct deposit and repayment.

• Contact information: A working phone number, email address and mailing address.

Learn More: Best Ways To Get a $600 Loan Quickly

Alternatives to a $500 Loan

Sometimes borrowing isn’t the smartest play. Here are alternatives if you’re wondering how to get $500 right now without a loan:

• Work a side hustle: Deliver with DoorDash, Uber Eats or Instacart and cash out same day.

• Freelance gigs: Sites like Upwork and Fiverr let you sell skills fast.

• Odd jobs: Use TaskRabbit or local Facebook groups for same-day work.

• Sell stuff: Facebook Marketplace, Poshmark or eBay can turn clutter into quick cash.

• Pawn shops: Less dangerous than payday loans, but you’ll risk losing the item if you don’t repay.

• Community help: Charities, churches and nonprofits sometimes provide emergency aid for rent, food, or utilities (211.org is a great starting point).

Cash Advance Apps for $500

Cash advance apps are another way to get up to $500 before payday, usually without a hard credit check. You link your bank account so the app can verify your income and recent deposit history, then request an advance up to the amount you may qualify for. 

Funds can land in your account within minutes for an express fee or take a day or two for free. Instead of interest, many apps charge a monthly membership fee, a flat transaction fee or an optional tip. Repayment usually happens automatically on your next payday, so you will want enough in your account to cover it and avoid an overdraft. 

Because approval depends on your income pattern rather than your credit score, cash advance apps can work well if you have steady direct deposits but a lower credit score. Compare fees across a few apps before you commit, since costs and advance limits vary by provider.

Considering a way to build your credit? MoneyLion can help by offering a free and convenient way to find offers from our trusted partners to help you improve your credit.

What To Know Before Taking Out a $500 Loan

Quick cash can solve today's problem, but before you sign anything, it’s worth knowing the hidden costs and risks that often come with a $500 loan.

Debt Cycle Risk

Frequent rollovers, or difficulty repaying, can trap borrowers in a recurring debt cycle with mounting fees and interest. Often these loans have short repayment terms, which can also increase the risk of debt. 

High Interest and Fees

Payday and quick-cash loans commonly charge extremely high APRs — often well over 300%, plus extra fees for late payment or renewal.

Credit and Bank Account Impact

Missed or late payments may be sent to collections, damaging credit; direct access to your bank account increases risk of overdraft fees or aggressive withdrawal attempts.

Predatory Practices

Some lenders will target financially vulnerable individuals with confusing fee structures, misleading advertising or pressure to borrow more than needed.

Borrow Smart, Not Scared

A $500 loan can be a lifesaver — or a financial trap. Personal loans from banks and credit unions tend to be safer bets.  Treat payday and title loans as last-resort options because of their high costs and collateral risk. Whatever route you take, know the risks, compare offers and keep your long-term financial health in mind.

Learn More: $100 Loan: Fast Approval, Easy Repayment Options

$500 Loan FAQs

Can you get a $500 loan with bad credit? 

Yes, you can get a $500 loan with bad credit. Options like credit union loans or peer-to-peer lending may approve you for a loan.

How fast can you get a $500 loan? 

You can get a $500 loan as quickly as the same day you apply. Some platforms deposit funds within minutes to 24 hours, while banks and credit unions may take one to five business days.

Do you need a credit check for a $500 loan? 

Generally, yes. Banks, credit unions and most online personal loan lenders run a hard or soft credit check before approving a $500 loan, while some payday lenders and cash advance apps, which aren’t loans, skip a credit check altogether. Ask the provider directly which type of check they use before you apply.

What credit score do you need for a $500 loan? 

You do not need a specific credit score to qualify for a $500 loan, but requirements vary by lender type. Banks typically look for a score of 660 or higher, credit unions often approve scores of 620 and up, with some going as low as 580, online lenders may approve scores between 580 and 700, and bad-credit lenders may work with scores below 580 or no credit history at all.

Can you get a $500 loan with guaranteed approval?

No lender can honestly guarantee approval for a $500 loan no matter your credit score. Even payday and bad-credit lenders that advertise easy approval still review your income, bank account activity and state eligibility rules before funding a loan. Be cautious of any lender promising guaranteed approval, since that claim is often a red flag for a predatory or scam offer.

Is there a way to prequalify for a $500 loan without a hard credit check?

Many banks, credit unions and online lenders let you check your rate through a prequalification process that only uses a soft credit check, which will not affect your credit score. A hard credit check typically happens only after you formally apply and accept an offer. Ask the lender directly whether their initial rate check is a soft or hard pull before you submit an application.

What's the best way to find $500 loan lenders?

There is no single best lender for everyone, since your ideal option depends on your credit score, how fast you need funds and what you can afford to repay. Compare a few banks, credit unions and online lenders side by side, looking at the APR, fees and repayment terms for each before you apply. Prequalifying with a few lenders can help you spot the lowest cost option.

Key Terms

• Payday alternative loan (PAL): A small-dollar loan from a federal credit union, capped at a 28% APR with a maximum $20 application fee.

• Annual percentage rate (APR): The yearly cost of borrowing, including interest and fees — the best way to compare $500 loan offers.

• Credit card cash advance: Cash withdrawn against your credit limit, with an upfront fee and interest that starts accruing immediately.

• Peer-to-peer loan: A loan funded by individual investors through a platform rather than a bank.

• Buy now, pay later (BNPL): A way to split a purchase into installments, often interest-free if paid on time.

• Title loan: A short-term loan secured by your paid-off car, with very high APRs and repossession risk.

• Payday loan: A short-term, high-cost loan due in about two weeks, with APRs that can approach 400%.

• Debt cycle: The trap of repeated rollovers and mounting fees when a short-term loan can't be repaid on time.

Sources

• NCUA: Payday Alternative Loans

• CFPB: What is a payday loan?

• CFPB: What is a title loan?

• FTC: Using a credit card cash advance

Summary generated by AI, verified by MoneyLion editors

Parts of this article were created with AI assistance. MoneyLion editors reviewed, fact-checked and edited the final version and are responsible for its accuracy.

Melanie Grafil, CFHC™, contributed to editing this article.

Photo credit: ljubaphoto / iStock.com