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

A $500 loan is a small, short-term loan you can use to cover an unexpected expense like an auto repair, a medical bill or a utility payment. You can get one through a bank, a credit union, an online lender, or a payday lender. 

Most $500 loans require you to be at least 18, show proof of income and have an active bank account. Approval can take anywhere from a few minutes to a few business days depending on the lender. Getting a $500 loan can be costly, though, with annual percentage rates (APRs) on payday loans and tribal loans in the triple digits. You can find lower-cost options with a credit union loan or a personal loan.

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Key Takeaways

• How to get a $500 loan comes down to six main paths: A credit union PAL, personal loan, credit card cash advance, paycheck advance, peer-to-peer loan, BNPL or — as a last resort — a payday or title loan.

• A credit union PAL caps your cost: Federal credit unions limit PAL APRs to 28% with an application fee of no more than $20.

• Save payday and title loans for last: APRs near 400%, rollovers and the risk of losing your car make them the riskiest choices.

• Consider non-loan alternatives first: A side hustle, selling items or community aid through 211.org can cover $500 without debt.

Summary generated by AI, verified by MoneyLion editors

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 like 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

$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.

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

1. $500 Personal Loans From Banks and Online Lenders

A personal loan is often better for borrowing larger amounts, like $2,000. However, some banks will give smaller loans. Banks usually approve $500 loans for borrowers with a credit score of 660 or higher. Credit unions tend to approve members with credit scores of 620 and up, and some will work with scores as low as 580. Most online personal loan lenders look for a credit score between 580 and 700.

• 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 of 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. If you go this route, tread carefully. 

• 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?

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).

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. Payday and title loans? Only if you like living dangerously. 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. Payday lenders and some online lenders offer $500 loans to borrowers with credit scores below 580, though the APR and fees are usually higher than what you would pay with good credit. Cash advance apps, while not loans, are another option if you have less-than-perfect credit.

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? 

Banks, credit unions and most online personal loan lenders will run a hard or soft credit pull before approving you.

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

You do not need a specific credit score to qualify for a $500 loan. Banks and credit unions typically look for a score of 660 or higher, online lenders often approve scores between 580 and 660, and bad-credit lenders may work with scores below 580 or no credit history at all.

How much does a $500 loan cost? 

The cost of a $500 loan depends on the lender, the APR and any fees. A short-term $500 loan can cost you anywhere from a few dollars in fees to more than $75 in interest and finance charges over the life of the loan.

Key Terms

• $500 loan: A small, short-term loan for an urgent expense like a car repair, medical bill or utility payment.

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

• Annual percentage rate (APR): The yearly cost of borrowing including interest and fees.

• Credit card cash advance: Borrowing against your card's limit, with a 3% to 5% fee and interest that starts immediately.

• Peer-to-peer (P2P) loan: A loan funded by investors through a platform like Prosper.

• Title loan: A high-cost loan secured by your car, which you risk losing if you can't repay.

Sources

• CFPB: What is a payday loan? 

• NCUA: Payday Alternative Loans

• CFPB: What is a cash advance fee? 

• Federal Reserve: Consumer Credit (G.19)

Summary generated by AI, verified by MoneyLion editors

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

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