Nearly one in three U.S. consumers have bad credit.¹ Luckily, there are a few options available if you need a $500 loan without a credit check. Your best option will be to search for lenders that offer personal loans catering to your needs. If you have poor credit, the rates and loan amounts might not be the best, but there are still personal loan options available.
Your best options typically include personal installment loans, payday loans, pawn shop loans, title loans, and more. But keep in mind that credit checks serve an important purpose in the application process. And finding a financial solution with a bad credit score isn’t always easy.
If you can get approved, just remember, quick cash isn’t always safe cash. Make sure you find lenders offering the loan amounts, rates, and terms you deserve.
Types Of $500 Loans
Unfortunately, there are some predatory lenders that advertise no credit check loans in order to take advantage of low-credit borrowers in need. If they don’t want to check your credit, it could mean they make more money from you paying a late fee. Make sure you’re aware of all the terms, conditions, and rates, no matter what type of loan you’re considering. Even if you just need to refinance a personal loan, it should still involve careful consideration.
If you’re looking for small amounts, some of your options may include credit cards, a refinance of a current loan, or borrowing from friends or family members. But these may not be the best options for you. But below are a few of the most common options for borrowers with low credit to get quick cash:
$500 Payday Loans
A payday loan is a very short-term quick cash option. Borrowers take out a small amount of cash based on the promise to repay it within two weeks, or by their next payday.
The interest rates for payday loans are usually rather high, which makes repaying them difficult in such a short period of time. And if you don’t repay on time, you will incur a fee. That being said, you can usually get cash without a credit check if you find the right lender. And even though 500 dollars may not seem like a lot, sometimes it’s just what is needed to cover an unexpected cash emergency.
Getting a cash advance, no credit check, or a payday loan with no credit check could end up costing you a lot of money in the long run. This is because they tend to come with extremely high interest rates, and short repayment periods. Not to mention that you will owe a fee for late or missed payments. And if you can’t repay your loan, the lender may offer a refinance or “rollover.” Which means extending the loan, but charging a fee and more interest rates.
Payday loans are usually very risky, and not the best option when compared to things like credit cards, installment loans, or other options with lower rates.
$500 No Credit Check Loans
No credit check loans would be any loan that does not require you to submit to a credit check in order to receive the loan. Many short-term loan options offer no credit check options. These are usually meant for borrowers with less-than-perfect credit scores, since they can’t get cash from traditional lenders like banks and credit unions, or even credit cards.
There are many loans that may qualify as “no credit check” options. But just because they’re widely available doesn’t mean they’re your best option. While you may be able to find a no credit check loan and get approved, make sure you thoroughly understand the terms and conditions before agreeing to one.
$500 Auto Title Loans
This is a secured loan meaning it requires collateral to be approved for cash. The collateral will be the auto title of your vehicle. That means that if you can’t repay the loan, the lender is legally allowed to seize your vehicle and sell it to recover their money.
Auto title loans can provide you with quick cash if you’re in need, but you’re risking the loss of your vehicle. Many auto title loans may offer more than $500 cash for your loan amount, but it will depend on the value of your vehicle and their other eligibility criteria.
While these might be a popular option for quick cash, the risk of losing your vehicle might mean it’s not the best option for you. You might instead consider secured credit cards or other types of financial accounts.
$500 Pawn Shop Loans
A pawn shop loan is similar to a title loan, but on a smaller scale. It’s still a secured loan meaning you’ll need to offer up collateral to get cash. The collateral in this case could be any valuable item that the pawn shop will accept. But it’s the same situation as a title loan, and if you can’t repay the lender will keep your item.
Most pawn shop loans don’t offer much cash, so it may be tough to get a lot of cash. If you do get the cash and loan amount you need, make sure you’re aware of the repayment terms before signing an agreement.
Many borrowers with a poor credit score can still get one of these options, since the cash is secured with a valuable item. But specific eligibility criteria will depend on each lender’s policies. Just don’t expect much cash or a large loan amount unless you’re willing to give up a very valuable item.
$500 Personal Installment Loans
This is usually seen as a good alternative to the quick cash options mentioned above. It’s unsecured so you won’t need collateral, you can get more cash depending on the lender and your credit history, you have a longer amount of time to repay it (several months, up to a couple of years in some cases) and oftentimes a better rate of interest.
$500 Bad Credit Loans
A bad credit loan is one that caters to borrowers who have low credit scores and poor credit histories. For these borrowers, getting a loan from a bank or credit union isn’t always possible. They might even have a difficult time being approved for a credit card. In these situations, there are lenders who can still offer them the money they need.
Banks and credit unions tend to have more strict eligibility criteria than certain poor credit lenders. This means that they will review your credit history very carefully before making a decision. And poor credit tells them that you may not be able to pay your debts on time.
Many of the options listed here could be considered bad credit solutions. No matter which ones you choose, read the eligibility criteria and repayment terms very carefully.
$500 Cash Advance Loans
Cash advance loans, sometimes called payday cash advance loans, function the same way that a normal payday loan does. When a borrower submits a loan request and is approved, the lender offers the borrower a small amount of money that is then repaid on the borrower’s next payday, usually within two weeks.
The repayment terms and eligibility criteria will usually be the same for a cash advance as it is for payday loans. A cash advance and payday options are essentially the same loan product in most cases. Just be sure that the lender discloses the APR specifically, which accounts for the total interest you would pay over the course of one year.
A Word From CreditNinja if You Want a 500 Dollar Loan
If you have bad credit and need a loan in your bank account, you may be looking for lenders with good repayment terms that offer cash without credit checks. But no credit check loans typically come with excessive interest rates and fees. Instead, it may be best to consider more affordable options like secured credit cards, installment options, or credit unions.
It’s always best to start your loan shopping journey with a review of your current financial situation. Take a look at your bank accounts, credit scores, and current balances. And if you can afford to take out a loan, make sure you do plenty of research to find the best one for your specific needs.
Consider all of your loan options and read the repayment terms and conditions of a loan offer before accepting.
References:
