Find yourself in a bind and need a quick $500? Getting a $500 personal loan is not always hard, but it will probably come with additional costs. You can access several options to get a personal loan for this amount, but you’ll want to be aware of potential downsides before taking the money. You might be able to find an alternative that can help you avoid the loan together.
Do lenders offer $500 loans?
Most lenders offer loans with a minimum balance of $1,000. Some lenders, such as credit unions, may provide $500 personal loans in the form of a cash advance or online lending options. Still, loans with that small amount can come with additional requirements and fees. Before you sign up for a small loan, you’ll want to consider the extra fees you might incur before you make the decision to borrow the funds.
What to know about fast $500 personal loans
If you’ve found a $500 personal loan, take a look at other requirements that could affect the total cost of the loan.
Personal loans can have higher interest rates, specifically if your credit score is in the low to middle range. Realize that the interest rate for this kind of loan might be far higher than other types of loans.
Fees and other charges
With a $500 loan, expect additional fees and charges, most of them being one-time fees. Most loans have an origination fee at the time of opening the loan. This fee covers the cost of processing the loan and is sometimes rolled into the loan amount. Sometimes the origination fee is deducted from your total loan amount, so keep that in mind too.
An application fee will usually be required whether the loan is approved or denied. This fee, if required, tends to be non-refundable. The lender may charge fees for paying the loan off early, a processing fee when you make payments, and a late fee if you miss your payment date. Be sure to ask your loan servicer about the costs associated with the loan before signing the agreement.
It is essential to consider the loan repayment terms and what works best for you. The most common loan terms range from 12-60 months, which is the amount of time you are expected to pay off the loan. The longer the term, the lower the payment, but that means you will pay more interest. When reviewing your loan terms, consider what you can pay and be aware of a possible prepayment penalty if you want to pay it off sooner.
To increase your chances of approval, you can expect some requirements associated with a loan application. For example, loans have different credit score requirements to help determine if you are approved and your interest rate. Specific income requirements may apply when considering applying for a loan and your approval odds. Your loan provider might also require your bank statements and run your credit report.
Types of $500 loans
Believe it or not, you’ve got a few options for a $500 personal loan.
Payday loans are commonly used to get a quick $500 instantly.
Typically offered for balances of $500 or less, payday loans are short-term loans that do not require a credit check. As the name implies, the borrower is expected to pay the loan back by their next payday. These loans come at a high cost. Like most loans, the lender charges an origination fee, but where payday loans get tricky is with their additional expenses. Fees can equal $10-$15 for every $100 loaned weekly. The idea with a payday loan is to pay it off in one lump sum within 2-4 weeks of borrowing.
Cash advances are another way to get a $500 instant loan. Your credit card will probably have a cash advance allowance. You can visit your credit card branch if available, contact your credit card company directly, or use a check sent by your credit card company. Any of these methods will gain you access to the funds as cash, either deposited in your account or in hand. With cash advances, it is important to consider they tend to have a higher APR than your credit card in addition to additional processing fees.
Credit builder loan
Credit builder loans are unique because they do not work like traditional personal loans. These are best designed for individuals with no or poor credit because they can help you build your credit. When you apply and get approved for a credit builder loan, the funds are put into an account similar to a savings account. You then make fixed payments towards the amount over time, typically between 6 and 24 months. You still pay interest on the loan, but you will have money saved by the end of the terms. For example, if you request a $500 loan, you will spend the loan term paying off the $500 while the lender will put your payments into a savings account that you can only access once the loan is paid off. Credit builder loans are also suitable for small amounts because they range from $300 to $1000.
Alternatives to financing
Here are some alternatives if you need extra money but feel that a loan is not the best option for you.
Assess your spending and determine if you can make any cuts. Are you paying for monthly services that you no longer use? Making cuts to your spending and redistributing your funds might help you free up the $500 you need.
Take on a side job
Many side jobs can help you bring in extra income. Some can be done without leaving the comfort of your home, like a freelance writer or proofreader. Others require you to work outside the home but still have the flexibility to work around your full-time job while giving you the freedom to pick up additional hours. For example, you could consider driving for rideshare or grocery delivery services.
Focus on paying down debt
Paying down your debt is a great way to free up money and get you on track. Many people find the following two methods successful in paying down debt. First, there’s the snowball method, where you pay down your smaller debts first, eventually tackling the largest at the end. Then there’s the avalanche method, where you get rid of the largest debt or the debt with the highest interest first, then eventually pay off the smallest last. Find the way that works best for you by paying down debt, and you will find yourself with additional cash.
How to apply for a $500 loan
Applying for a $500 loan is relatively straightforward. The application process, in most cases, will require a credit check. However, some loans, such as credit builder, payday, or cash advance, typically do not. You will need proof of income, such as pay stubs, and you’ll have to complete an application. Be prepared for an application fee. Finally, the lender will let you know your interest rate and loan terms once approved. Make the decision on your loan based on whether you can afford the monthly payments and decide if the fees make the most sense for you.
Get a $500 personal loan easy
Plenty of places offer $500 loans, but they come at a cost. Smaller loans have options that can include additional charges and fees. For example, payday loans can have hefty fees that, if not paid off on time, can quickly double your loan balance. While alternatives such as cash advances from your credit card or a credit builder loan can sometimes build your credit, these options may have a longer wait time. You could also consider alternative ways to get the cash you need, but this method could take a little longer.
Is it possible to get a $500 dollar loan with bad credit?
Yes, you could get a $500 loan with bad credit. Some options do not perform credit checks and others charge a much higher interest rate.
What should I do if I need a $500 loan?
If you need a $500 loan you can consider your bank or credit union as an option to find out what’s available to you. Don’t have a financial institution? You could also look at a payday loan.
Can you get a $500 loan with no credit check?
Yes, payday loans, cash advances, and credit builder loans can give you funds without a credit check.