A $500 loan is a short term loan or small dollar loan to help you cover emergency expenses like medical bills, car repair or other financial emergencies. These payday loans can be obtained from direct lenders or payday loan lenders online or in-store.

To request a $500 loan you will need to fill out a loan request form or online form and provide your personal and financial information. Many lenders cater to bad credit or poor credit scores, bad credit payday loans or low credit finance options. But remember the cost will depend on many factors like loan terms, interest rates and any late payment fees.

Features

1. Minimal Credit Check. Many direct lenders do online loans with less emphasis on credit scores so bad credit scores or poor credit scores can get a 500 dollar loan (some lenders may still do a soft credit check).

2. Fast Funding. Most lenders provide fast cash, they deposit funds into your savings account within one business day so you get the money fast when you need it most.

3. Bad Credit Eligible. Direct lenders have eligibility criteria that accommodate bad credit or no credit, they offer loan options you may not get from traditional lenders.

4. Short Term Solution. A $500 loan is a short term loan to help you cover emergency expenses or unexpected bills, temporary financial help until your next payday.

Pros and Cons

Pros

1. Bad Credit Friendly. Direct lenders provide $500 payday loans to bad credit scores or poor credit scores so it’s easier to get a $500 loan when you need it most.

2. Fast Approval and Funding. Online loans from new lenders offer fast approval and funding, they deposit money into your account within one business day.

3. Alternative Data Considered. Some new lenders use alternative data companies to assess creditworthiness which can result to reasonable interest rates and loan options for bad credit scores or no credit history.

Cons

1. Short Repayment Term. As short term loans, $500 payday loans have short repayment periods which can be challenging for some borrowers to repay on time and avoid late payment fees.

2. Higher Interest Rates. Some lenders offer reasonable interest rates but many payday loan lenders charge higher interest rates than traditional lenders or bigger loans which can increase the total cost of the loan.

3. Debt Cycle. Borrowers who can’t repay their $500 loan on time may need to take out another loan to cover their expenses and create a debt cycle that’s hard to break and may lose more money in interest and fees.

How to Apply for a $500 Payday Loan?

1. Choose A Lender. Select a reputable payday lender, online or in-store, that complies with state laws and federal regulations.

2. Prepare Required Documents. Gather required documents like pay stub, social security number, bank account information and proof of income.

3. Fill Out The Application. Fill out the payday loan application form with personal details, employment information and loan amount. Submit online or in person.

4. Review The Loan Agreement. Review the payday loan agreement carefully, interest rates, fees, repayment terms and due date.

5. Get Loan Proceeds. Once approved, get the loan proceeds deposited into your bank account or prepaid card account, usually within one business day.

Requirements

According to the U.S. government’s Consumer Financial Protection Bureau (CFPB), to qualify for a loan most payday lenders only require that borrowers:

1. Age. Applicants must be at least 18 years old, although some states require 19 or 21 years old.

2. Have An Active Checking Account. A valid and active bank account for deposit of loan proceeds and for the lender to withdraw repayments.

3. Proof Of Income. Borrowers need to show proof of income like pay stubs to prove they can repay the loan.

4. Valid ID. Borrowers must present valid ID which is usually a social security number to verify their identity.

How to Get the Money

1. Direct Deposit. The most common way is direct deposit into your bank account. Once your payday loan application is approved, the payday lender will deposit the loan proceeds into your active checking account, usually within one business day.

2. Prepaid Debit Card. Some payday lenders offer to load the borrowed amount into a prepaid card account. This is convenient if you don’t want to use your bank account.

3. Cash. In some cases, especially with in-store payday lenders, you can get the borrowed amount in cash. But this is less common than direct deposit or prepaid card.

4. Check. A few payday lenders may give you a check for the loan amount which you can cash or deposit into your bank account.

Payday Loan Rates

Payday loan rates usually involve fees of $10 to $30 per $100 borrowed depending on state laws and borrowing limits. The average fee is $15 per $100 borrowed which translates to an annual percentage rate (APR) of around 400% for a 2 week loan. For example, if you borrow $300 you would need to pay back around $345 by next payday. These rates are much higher than other types of loans like personal loans or secured personal loans.

Payday lending is allowed in 37 states while 11 states, including Connecticut, Maryland and New York have strict regulations or interest rate caps that limit or prohibit payday lending. Some states like Arkansas and North Carolina have repealed their payday lending laws and others like the District of Columbia have banned it altogether.

18 states and the District of Columbia have usury rate caps, often 36% APR, to curb high cost payday lending. States like Nebraska, Hawaii, Illinois and New Mexico have recently enacted such caps, as the trend is shifting towards regulating payday loan rates.

The highest payday loan rates are in states like Texas (662%), Missouri (652%) and Delaware (639%). On the other hand, states like Oregon (140%), Maine (228%) and Iowa (247%) have lower rates. Some states like Washington and Virginia have additional regulations to limit the number of payday loans or extend the repayment terms to prevent debt traps.

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