How to Get a $500 Loan

How to Get a $500 Loan

If you find yourself unexpectedly in need of $500, you’re not alone—nearly half of Americans polled reported that their wallets couldn’t handle an urgent need of that amount.

Receiving a $500 loan may not be as difficult as you think. Some lenders specialize in providing loans starting as low as $500 for car repairs, medical bills, or other immediate costs—and here’s how you can find that much-needed support.

How to Borrow $500 Quickly

You may be able to get an unsecured personal loan in as little as 24 hours with the right lender. A personal loan is a lump sum of money that you borrow which is typically repaid in monthly installments at a fixed interest rate.

Traditional banks and credit unions may have limits on how little you can borrow—some will require you to borrow at least $5,000 or even $10,000 on a personal loan. They may also have minimum credit score and other requirements in order to borrow from them.

Online lenders such as RISEcredit.com offer a convenient alternative to traditional banks. You can apply from anywhere, often with no need for an existing banking relationship, and receive a decision within minutes. These lenders often specialize in offering loans to borrowers who may have faced challenges with traditional banks in the past.

Steps to a $500 Unsecured Personal Loan

If you’re unsure about how or whether to apply for a $500 loan, here are some steps to help you prepare.

#1: Decide How Soon You Need $5000

How quickly do you need $500? Depending on how urgent things are, you have several options:

• Need it now? Online lenders specialize in quick approvals and can often deliver funds as fast as one business day.
• Have some time? Consider alternatives like borrowing against your retirement account or applying for a personal loan from a bank or credit union.
• No rush? Saving up, even small amounts regularly, is the best way to avoid debt and reach your financial goals.

#2: Choose a Repayment Plan

When can you repay the loan, and will you be able to repay it all at once or do you need smaller monthly repayment amounts?

Payday, pawn, and some banking loans often require repayment in full all at once, while a personal loan from an online lender or a credit card cash advance will typically be repaid in monthly installments.

Compare options to see what you’ll be able to afford.

#3: Check Your Credit Score

Most loans require a credit check, which tells the lender your history of repaying other loans, whether you have any delinquent (or late) payments on your record, and your current credit score. This is what will determine whether they offer you a loan and how much you’ll pay in interest charges.

Many banks, credit unions, and credit card providers show you your credit score for free when you sign into your account. You can also request free credit reports that give you the complete picture through AnnualCreditReport.com.

#4: Shop Around

Whenever you borrow money, compare different loan types and lenders to see what rates and terms you qualify for. Do the math on how interest, fees, and other charges add up to figure out what the total cost of the loan would be before you sign.

#5: Submit Your Application

You’ll need some details before you fill out an application. Gather info on:

• Your monthly income and where it's from
• Identification that proves your age
• A valid and active bank checking account

On the opposite end of the spectrum, if you choose a home equity line of credit (HELOC) or loan, you’ll typically need to submit a host of documents including two years’ tax returns, bank statements, insurance declarations, mortgage statements, pay stubs, and more.

How to Choose a $500 Loan Provider

The type of loan and the specific lender you choose can make a big difference in whether you can pay it off when due and how much the loan will cost you in interest and fees. You may be able to choose from:

• Online lender
• Traditional or online bank
• Credit union that you belong to
• Your credit card provider

Some lenders have a minimum credit score or other financial requirements that you must meet. Other options such as some online lenders specialize in helping borrowers with less-than-perfect credit —but keep in mind that a higher credit score will impact your ability to borrow (especially larger amounts) at lower interest rates.

Other Ways to Borrow $5000

There are a few different approaches to borrowing a small amount of money. Each has its own process and requirements—and some will come with a deadline to pay back what you owe in one lump sum.

In additional to unsecured personal loans, you can also borrow $500 with a:

• Cash advance on your credit card
• Payday loan against your next paycheck
• Pawn shop loan against jewelry, tools, etc.

That said, payday loans and pawn shop loans come with serious risks. Payday loans often carry extremely high interest rates and fees, which can trap you in a cycle of debt if you're unable to repay on time. Pawn shop loans, on the other hand, can result in the loss of your valuables if you don’t repay the loan. Both options should be approached with caution, as they can end up being much more expensive than anticipated.

What is the Easiest $500 Loan to Get?

There isn’t a one-size-fits-all when it comes to the right loan for you, but there are instant-response loan options for everyone. Depending on your financial circumstances and banking relationships, some of the fastest and easiest ways to borrow $500 are:

• Online Lender - Need a loan now, but don’t want to visit a bank? Online lenders offer a convenient alternative, with no need for an existing banking relationship
• Credit card cash advance - While they come with higher interest rates than purchases, many cards allow you to take a cash loan by using them at an ATM.
• Traditional bank - If you have an established relationship and accounts with a traditional bank that offers small-dollar instant loans.

A $500 Loan at Your Fingertips

At RISE, we welcome borrowers with all types of credit histories and financial situations. You’re in control with our flexible repayment terms, and there’s no penalty or fees if you decide to pay off your loan early.

Whether you need a loan for $500 or $5,000, fill out our simple online application. There’s no obligation. Once you hit submit, you’ll typically receive a decision from us within minutes that allows you to choose your own payment plan and terms.

Our focus is on getting you the help you need today while offering tools and resources that contribute to your brighter tomorrow.

FAQs

What Credit Score Do I Need for a $500 Loan?

Each lender sets their own minimum credit score requirement. You don’t need a certain credit score to borrow $500, but you will need to choose a lender and loan type that works with diverse borrowers if you have a lower credit score.

What are the Monthly Payments on a $500 Loan?

Monthly payment amounts for a $500 loan depend on the loan term (or amount of time you have to repay it) and the interest rate of your loan. By knowing these three variables, (loan amount, rate, interest rate) you can use an online loan calculator to see what your monthly payments would be.

How Long Does It Take to Repay a $500 Loan?

Lenders with flexible repayment options will allow you to choose your repayment term on an unsecured personal loan. Some types of loans, such as payday loans, require a full lump-sum repayment as soon as your next job payday.

Can I Borrow $500 with Bad Credit?

Yes, you have options if you have bad credit, although you may have a smaller pool of lenders to choose from and a higher interest rate on your loan. Choose a lender that welcomes borrowers who don’t qualify for traditional loans.

How Long Does It Take to Get Approved for a $500 Loan

The application and approval process varies, depending on the lender and type of loan. With RISEcredit.com, you can receive a decision within minutes and your $500 loan as soon as the next business day.*

What's the Best Way to Borrow $500?

There is no one-size-fits-all answer for the best way to borrow $500—it depends on your credit score and other financial factors, how quickly you need the cash, and what banking and credit relationships you already have established.

We encourage borrowers to shop around for the best interest rates and loan terms they can access in their individual situations.