Unforeseen expenses occur more regularly than one wishes to admit, and they affect people with good and bad credit alike.
If you happen to have an underwhelming credit score and need $500 badly, don’t despair! Some lenders will lend you that amount and more, even if you’re in a pickle with the major credit bureaus. Even more importantly, you can get your $500 loan approved almost instantly without having to suffer through strenuous paperwork and week-long waits.
In this short guide, we’ll share three reliable options for securing a $500 loan today, regardless of your credit history. Let’s begin with:Also read: The Top 10 In-Demand Tech Skills you need to have in 2021
Payday loans (or “cash advances,” as some call them) are awesome for last-minute emergencies or when you are struggling to get through the end of the month.
As the name might suggest, a payday loan is an agreement by which a lender hands out a relatively small amount based on your income, which should be repaid in full once you receive your next paycheck.
To apply for a payday loan, the creditor will ask you to submit proof of income, which typically is a payslip or bank statement. You will also be asked to provide a photo ID and in certain cases, your SSN. For most lenders, that’s all you need, which makes a payday loan one of the easiest ways to get a $500 loan with bad credit.
However, the convenience of payday loans comes at a steep cost: interest rates. Payday loans are high-risk loans that are especially tailored for bad-credit individuals. For this sole reason, you should expect to get quoted APRs (annual percentage rate) in the triple digits.
Moreover, the repayment term is incredibly short (as mentioned earlier). All of this makes payday loans a very inconvenient alternative unless you are seeking the most immediate short-term solution available.
The average amount you’ll get with a payday loan is $350. Depending on your state’s regulations, you could obtain anywhere from $50 to $1,000.
Personal installment loans are a great option for people with bad credit because they offer several advantages. Unlike payday loans, which require you to repay the full amount in one lump sum, installment loans let you pay back the $500 loan in regular installments over a set period.
Additionally, $500 installment loans often come with lower interest rates compared to payday loans, helping you save money in the long run. Overall, if you have bad credit and need instant cash, opting for a $500 installment loan can offer you a practical and affordable solution while ensuring you can comfortably meet your repayment obligations.
However, installment loan lenders do require a credit check. Unlike payday loans that often do not require a credit check, installment loans may consider your credit history as part of the application process. So, if you’re looking for a $500 loan with no credit checks, an installment loan is not an option.
The amounts you can borrow with a personal installment loan are quite generous. Some lenders offer installment funding options that range from $200 to $5,000.
Title loans are, by their very nature, secured. In most instances, your car would be used as collateral, and you can get from 25% to 50% of its value.
Nonetheless, even though they’re cheaper than payday loans in almost every aspect, approval windows are generally longer since your car must be appraised beforehand. Thankfully, online lenders offer the possibility of conducting digital appraisals in lieu of in-person inspections.
You may have to demonstrate your capacity to pay the loan on time, which is why they still ask for proof of income. Even so, the requirements are not as stringent in this regard as they are in the case of some installment loans.
Title loans span from $1,000 to $1,500 on average and as much as $25,000 on the high-end. Having said that, some lenders can offer $500 or less, depending on the state.
Now that we’ve outlined the three $500 loans for bad credit, it’s time to consider which one best aligns with your specific needs.
In terms of approval times, payday loans are easily the best out of the three. In some cases, your approval could take just a few minutes. However, they’re by far the most dangerous choice, and their repayment terms and interest rates are a big letdown.
In those areas we just mentioned, installment loans take the crown. You can find installment loan offers with rates as cheap as 36% or even lower. Compared to the three-digit or even four-digit rates they’ll charge you for payday loans, that 36% is undoubtedly a relief for your pocket. When it comes to repayment terms, we feel no further commentary is necessary, as there is simply no way to compete with the degree of flexibility that installment loans can give you.
Title loans are midway between payday and installment loans. They’re usually approved faster than installment loans but not as fast as payday loans. Likewise, they also tend to be much more economical than the latter when we factor in the collateral.
Eligibility requirements for title loans are straightforward and not much different from payday loans, even when payday loans have a slight edge in terms of simplicity. We can’t say much about eligibility requirements for online installment loans because they’re contingent on a myriad of factors.Also read: Top 10 Helpful GitHub Storage For Web Developers
Borrowing money entails far more than just the prospect of obtaining funds. Keep in mind you are not only taking money; you’ll ultimately be paying for a financial product that carries several costs, some of which can be very burdensome. For that reason, when discerning whether to incur debt, it’s vital that you do proper budgeting to figure out how much you can afford to borrow.
As you examine your borrowing options, you might want to be aware of every pitfall you can fall into. It’s not enough to glance at the big, bold letters highlighting all the advantages of a loan option. Rather, you ought to read the agreement draft down to the smallest detail to manage your expectations and understand your risks.
Also, while you may be itching to borrow more than you need, this is an ill-advised approach. The more money you borrow, the more you’ll have to pay in the end, and if you are already cursed with bad credit, it could get even worse from there.
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