$500 Loans for Bad Credit

Reviewed By: Aundraya Ruse | Last Updated: August 5, 2026

Sometimes an expense cannot wait for your next paycheck. A car repair that has to happen before Monday. A medical bill that showed up without warning. A gap between what you have and what you owe this month.

A $500 installment loan can help bridge that gap. With RISE, you can apply entirely online in just a few minutes, regardless of your credit history.

If approved, funds are typically available as soon as the next business day*. There is no branch visit, no faxing, and no waiting days for an answer. Just a straightforward application, clear terms, and a repayment schedule built around your budget.

Can I Get a $500 Loan with Bad Credit?

Yes, and it is one of the most common reasons people come to RISE. In fact, around 40% of RISE borrowers have a credit score below 550.

Traditional banks tend to rely heavily on credit scores when making lending decisions, which can make it difficult to get approved for smaller loan amounts if your credit history is imperfect. RISE takes a broader view of your overall financial situation.

This means borrowers who have been turned down by a bank or credit union may still qualify.

If you are specifically looking for more options designed for your situation, you can also explore our bad credit loans page for additional details.

Does RISE Run a Credit Check for a $500 Loan?

This is one of the most common questions we hear, and it is worth answering clearly.

When you submit an application, RISE performs a soft credit inquiry to review your application. A soft inquiry does not affect your FICO credit score** and will not appear to other lenders. If you decide to accept a loan offer, a hard inquiry may be placed at that time, which can have a minor, temporary impact on your score**.

Here is what that means in plain terms:

• Checking your options with RISE will not hurt your FICO credit score**
• You will see your full loan terms before you commit
• Only accepting an offer triggers a hard inquiry

For borrowers with limited or imperfect credit, this process allows you to understand your options without risk upfront.

What Does RISE Look at When You Apply?

If your credit score is lower, it helps to understand what lenders actually evaluate.

RISE looks at more than just your credit history. When you apply, we may consider:

• Your current income and whether it is consistent
• Your ability to manage fixed payments
• Your existing debt and financial obligations
• Your banking and payment history

There is no single minimum credit score required. We work with borrowers across a range of credit backgrounds, including fair and poor credit.

If you have been turned down by a traditional lender, it may still be worth checking your options. The application takes just a few minutes, and checking your options does not affect your FICO credit score**.

How to Apply for a $500 Loan with Bad Credit

The process is simple and can typically be completed in a few minutes:

1. Complete the online application
2. Review your options and see your loan terms before accepting
3. Choose a repayment plan that fits your budget
4. Receive your funds, typically the next business day* if approved

Why Borrowers with Bad Credit Choose RISE

Borrowers choose RISE because:

• Applications from all credit types are considered
• Repayment is structured in scheduled installments
• No prepayment penalties
• Free credit score monitoring and financial tools
• Clear loan terms before you sign

How Much Does a $500 Loan Cost?

Loan costs vary based on your state, income, and credit profile.

Before accepting a loan, you will see:

• Your Annual Percentage Rate
• Your payment amount
• Your full repayment schedule

There are no hidden fees. See our Rates and Terms page for full details.

$500 Installment Loan vs. Payday Loan

RISE Installment Loan

• Paid over time in scheduled payments
• Fits within your budget
• More predictable repayment

Payday Loan

• Typically due in full on your next payday
• One large lump sum payment
• Higher risk of needing to re-borrow

RISE does not offer payday loans, but may be a suitable alternative. For many borrowers, spreading payments over time provides more flexibility.

Other Ways to Borrow $500

There are a few different ways to borrow $500, and each comes with tradeoffs depending on your situation.

Credit Card Cash Advance

If you already have a credit card with available balance, a cash advance can be a quick option. However, interest typically starts accruing immediately, and additional fees may apply, making it more expensive than it first appears.

Bank or Credit Union Loan

Some banks and credit unions offer small personal loans, often with lower interest rates. That said, approval requirements are usually stricter, especially for smaller loan amounts or borrowers with lower credit scores.

Pawn Shop Loan

A pawn loan lets you borrow against an item you own, such as jewelry or electronics. There’s no credit check, but the loan is secured by your property. If you are unable to repay, you could lose the item.

For borrowers who need a balance of speed, flexibility, and structured repayment, an installment loan can offer a more predictable alternative.

What Can a $500 Loan Be Used For?

A $500 loan is often used to cover everyday expenses that cannot be put off.

In a recent RISE survey, more than half of respondents said they used their loan to cover bills such as rent, utilities, or other essential expenses. This reflects a common reality: these loans are often used to stay current, not to take on new spending.

Borrowers also use $500 loans for:

• Car repairs that affect their ability to get to work
• Medical or dental bills that need immediate attention
• Utility payments to avoid service disruption
• Home or appliance repairs
• Prescription costs

In most cases, the goal is not discretionary spending, but managing short-term gaps in a monthly budget.

Is a $500 Loan Right for You?

A $500 loan can be helpful in the right situation, especially when timing matters.

It may be a good fit if you:

• Need to cover an expense quickly and cannot delay it
• Have a steady source of income
• Want a structured repayment schedule rather than a lump sum due all at once

At the same time, it is important to make sure the loan fits your overall financial situation.

It may not be the best option if:

• You already have access to lower-cost borrowing such as a credit card or personal loan
• You are unsure you can comfortably manage the payments

Taking a few minutes to review your options before applying can help you make a more confident decision.

$500 Loan Quick FAQs

What credit score do I need?

There is no minimum requirement.

Does RISE check your credit?

Only a soft inquiry is used initially.

How fast can I get my money?

Typically the next business day*.

What do I need to apply?

You live in a state we service, you are at least 18 years old, you have a Social Security Number, you have a job or regular source of income, you have an active checking account, and you have an email address.

Can I pay early?

Yes, with no prepayment penalty.

Does RISE report to credit bureaus?

Yes.