A $500 loan is a type of personal loan typically used in financial emergencies. Such loans need to be paid back with interest in monthly installments; however, some issuers may offer more flexibility.
There are tons of things everybody needs to consider before they ever go for taking a $500 loan. This might not be a big amount, yet several things come into play including the credit score. Most issuers require at least a decent average score (600 or more) to process applications. In addition, you may have to submit income proof. On the plus side, the entire process can typically be completed online and the amount is sent via bank deposits.
Be careful when comparing companies as some issuers are slow and some will offer cash in 24 hours. To help you pick the right one, we have reviewed some of the best $500 loan issuing companies.
Why Do People Choose to Take $500 Loans?
Loans are very common in the US and most of us are under credit, however, it still surprises people that anyone would apply for a $500 loan. Here are some of the reasons why:
- Sometimes there are medical emergencies that need to be dealt with right away. This is especially true for people who do not have medical insurance.
- A $500 loan can prove to be handy in emergency situations such as funeral costs.
- If you have to make a sudden move or you’ve been planning one for a long time and you just can’t afford it right now then it might be a good time to apply for a loan.
- Your car broke down somewhere and you just got to know it needs a new engine, where are you going to get the funds? A loan can help you out.
- It’s a type of debt consolidation where you take one loan to pay another. Choose this option only if your credit card debt is costlier.
Whatever the reason, take out a loan only if you are sure you’d be able to pay it back. In most cases, you will have the option to use the money however you like, but in some cases, there may be some limitations. For example, some lenders do not allow money to be used for business-related expenses. Keep this factor in mind when applying for a $500 loan.
7 Companies that Offer $500 Loans with No Credit Check
Luckily, there are a few companies that are willing to give out loans to people with a bad/less credit score. We have covered some of the best below:
MoneyMutual
MoneyMutual isn’t a lender but a marketplace that helps lenders connect with borrowers.
You will need to fill out a form and submit it for approval. The company will send your application to several lenders and then they can decide who wants to give a loan.
You will need to have a stable income of at least $800 each month to get approved. There are no credit limit requirements, however, some issuers may require applicants to have a specific score.
Taking out a $500 loan through this platform is easy but you might also get approved for less. The form takes five minutes to fill out and deposits are usually made within 24 hours. Average interest rates for their lenders range from 15 to 25 percent.
Here are the pros and cons of choosing MoneyMutual:
Bad Credit Loans
Like our first pick, Bad Credit Loans is also not a direct lender. It will match you with several lenders and then you can take it forward from there.
The application process is simple and quick. You will need to be 18 or older and have a bank account to qualify. No specific credit requirements are in place but a reliable source of income may be needed. Again, this changes from lender to lender and some might have specific requirements.
They provide loans from $500 to $35,000. The APR varies and is typically between 5.99 percent and 35.99 percent.
Repayment terms are in the range of 90 days to 72 months. You will typically get a 90 day window if you apply for a $500 loan. Moreover, some lenders might be willing to negotiate the timeline so do give it a try.
Here are some pros and cons of choosing Bad Credit Loans:
RadCred
This company gives loans to people with good and bad credit scores and acts as a helper between borrower and lender. Founded in 1988, RadCred is a marketplace that helps people overcome their financial burdens and can be a great platform for applicants interested in quick cash.
You need to be living in the US to get a loan from Rad Cred as you will need a permanent address to qualify. Almost all companies offering $500 loans have similar requirements, hence this will not be an issue.
Borrowers can receive a quick transfer of up to $5,000 and getting a loan of $500 is easier as it has fewer requirements. People with outstanding credit scores can get up to $40,000 but you still need a credit history to apply for a $500 loan. Payment terms differ from lender to lender but aren’t always flexible.
Here are some pros and cons of Rad Cred:
CashUSA
CashUSA was founded in 2015 and is a very reliable name. It matches borrowers with lenders and offers a wide variety of options to choose from. However, the matching feature isn’t as good as what other companies offer and it can get a little overwhelming to find a suitable lender. On the positive side, the APR starts as low as 5.99 percent and goes as high as 35.99 percent. You might be able to get a low rate with CashUSA if you have a good credit score.
The company is transparent and quick with its services. The process is straightforward and money is usually transferred on the next business day.
You need to have been employed for at least 90 days to be eligible. Borrowers can get from $500 to $10,000. Loan terms are flexible and are in the range of 90 days to 72 months.
Here are some pros and cons of CashUSA:
Personal Loans
This is one of the few companies that operate with two network lenders and have a long list of lenders that cater to individuals with a low credit score. If you are applying for a $500 loan then you will not have to worry about credit scores as most lenders on this platform do not require an impressive score. You must, however, have a decent history, especially if you want a good rate.
In addition, you must be a resident and have a valid social security number to be eligible. You also must not be drowning in debt beforehand or going bankrupt in a few days.
They provide loans from $500 to $35,000. Once you apply and are approved, you can get the amount within 24 hours. There are no restrictions and money can be used for any purpose. In addition, borrowers with very low credit scores can opt for credit repair services.
Terms can be as low as 30 days and as high as 60 months, however, for small loans, you will typically be expected to return the amount when you receive your next paycheck.
Here are some pros and cons of choosing Personal Loans:
WeLoans
We Loans is another marketplace that gives users access to a number of lenders, all with their own terms and conditions. On the plus side, all accept virtual documents and no personal visits are required.
With this platform, you can start as low as $50 and go as high as $5,000. Those who want more can get in touch with the company to request an increase. Since the company offers payday loans, you will be expected to return the money when you receive your next paycheck. However, some lenders might be more lenient and willing to negotiate.
Money is transferred in 24-48 hours and will be deposited into your bank account. Moreover, applicants with a poor credit score can also qualify.
Here are some pros and cons of choosing We Loans:
CocoLoan
CocoLoan left us mighty impressed. The company caters to people with bad credit scores and does a good job of matching borrowers and lenders. Most people will have no trouble getting a $500 loan with CocoLoan, however, the minimum is $50 and the maximum is $5,000.
Coco Loan deals with multiple types of loans, secured and unsecured, but you will not need collateral for a $500 loan. Most are short term loans that need to be returned in 30 days but you might be able to get different loan terms as well.
While the official site does not advertise an APR, we found that it is in the range of 10 to 35 percent.
How to Get a $500 Loan: Conclusion
This is all you need to know about getting a $500 loan. It is one of the easiest loans to get as very little paperwork is required and most companies will approve a request even if you do not have a decent credit score. However, only apply for a loan if you are sure of your financial situation and the ability to pay it back in a timely manner as not doing so could impact your credit score.
You may also like to read:
- 5 Companies Offering Easy Tribal Loans For Bad Credit
- All You Need to Know About 100 Dollar Loans
- 5 Best Cash Loans Online
- These 4 Companies Offer Cash Loans Wired in 1 Hour
$500 Loans: Frequently Asked Questions
Do I have to pay interest on a $500 loan?
Yes, you will have to pay interest on a $500 loan as these are not interest free loans. Some NGOs or government organizations may offer interest free loans but they are given for specific purposes and to special individuals. You might, however, be able to get a very affordable loan if you have a good credit history. Also, since $500 loans are usually available at marketplaces and not direct lenders, you may have the option to negotiate the interest rate.
How soon do you have to pay back a $500 loan?
You will have to start paying back the amount within 30-90 days. Since it’s a small amount, the window is usually short and, in most cases, you will be expected to return the amount when you receive your next paycheck.
Can I get a $500 loan if I am 16?
No, you cannot get a $500 loan if you are 16 as you must be the age of maturity (18 or older) in order to qualify. In addition, you must be a US national or resident with a permanent US address. Other requirements include a credit history (not always a good credit score), a bank account, and an income source. Since $500 loans are usually not given by institutions, requirements may change from person to person and some additional documents may also be needed.
Can I apply for a $500 loan online?
Yes, you can apply for a $500 loan online as a large number of companies offer online services. You will have to sign up for an account, upload the required documents, and the system will check your eligibility. The entire process usually takes a few minutes. Once approved, the money will get deposited into your bank account.
Can non-residents apply for a $500 loan in the US?
Most issuers do not work with non-residents; however, there may be some exceptions. If you are a non-resident then get in touch with a provider and ask for a loan. They may require additional documents to process your application.
What documents are needed to apply for a $500 loan?
The requirements change from issuer to issuer. In most cases, you will have to add financial documents such as your credit history, identity documents such as a passport, and income documents such as your pay stub. Some additional documents may be required based on your lender and loan type.
Can I get approved for a $500 loan without a credit history?
A large number of companies now cater to applicants without a credit history. Hence, you can get a $500 loan if you have no credit history; however, you may have to pay more interest than someone with a proven credit history.