Key takeaways
- A $500 payday loan can be helpful in a financial crunch, but it will likely come with very high interest rates and additional fees.
- Payday loans typically must be repaid by the next payday. The short repayment term and high cost can trap borrowers in a cycle of debt.
- Online loan lenders, cash advance apps, and credit unions also provide $500 personal loans to borrowers with bad credit.
A $500 payday loan is a fast and easy way to borrow, especially when you have bad credit. Payday loans give you the money quickly, often the same day, with few requirements. They can appear as the perfect solution when emergencies or unexpected expenses pop up.
While these loans provide immediate financial relief, it’s important to consider the total cost of borrowing. Payday loans are expensive and can quickly become a burden.
Here’s what you need to know about these short-term loans to decide if they’re right for you.
Jump to:
- What are payday loans and how do they work?
- Why is $500 a common amount in payday loans?
- How to get a $500 payday loan online with poor credit
- Average payday loan interest rate across U.S. states
- Repayment terms and options for 500 dollar loans
- Payday alternative loans
- How much money can I get from a bad credit payday loan?
- What is the process for getting a $500 cash advance with no credit check?
- Bottom line
What are payday loans and how do they work?
Payday loans are small, short-term loans designed to help individuals cover immediate expenses until their next payday. You can often find no denial payday loans from direct lenders only, without a credit check. Instead, you write a post-dated check to the lender or authorize them to debit your bank account on the agreed-upon repayment date.
Payday loans have a swift approval process and require fewer qualifications. They are easily accessible to borrowers with less-than-perfect credit. Loan amounts are usually small, under $500.
While easy to get, they are expensive. Most lenders charge high fees of $15 to $30 per $100 borrowed. The Consumer Financial Protection Bureau found that a loan with a two-week repayment term and a fee of $15 per $100 equates to an annual percentage rate (APR) of almost 400%.
Why is $500 a common amount in payday loans?
Many lenders cap payday loans at $500 to lessen their risk. These lenders do not conduct a credit check or assess your ability to repay the loan. That makes them riskier for both the lender and the borrower. As a result, many lenders cap the amount you can borrow to mitigate their risk.
States also protect borrowers by regulating the amount that can be borrowed. Payday loans in Florida are capped at $500; in California, the limit is set at $300, including fees. That means if you’re looking for a payday loan in Los Angeles, the maximum amount you can borrow is $255. That’s why $255 payday loans online are so popular.
Are you strapped for cash?
How to get a $500 payday loan online with poor credit
Getting a $500 loan online with poor credit is easy. Payday loans are designed for borrowers with bad credit.
Compare direct payday loan lenders
Many borrowers turn to guaranteed payday loans from direct lenders for quick cash when traditional banks say no. Direct lenders provide loans without the use of intermediaries. You deal only with the lender, avoiding middlemen, delays, and simplifying the borrowing process.
Be sure you choose a reputable lender that offers fair terms. Look for reviews and ratings from other customers and check their standing with the Better Business Bureau.
Pay attention to their fee structure, the APR they offer, and their customer service practices. Reputable lenders will be upfront about any fees or interest associated with their loans.
500 payday loan eligibility criteria for borrowers with bad credit
Payday lenders generally have very lenient requirements. While personal loan providers require a 600 credit score or higher, most payday lenders do not care about your credit. If you have a 300 or 500 credit score, you will still be eligible.
What they do care about is your age, income, residency, and bank account. You will have to provide proof of income to assure lenders that you can repay the loan. You must be at least 18 years old, though in some states the age is set at 21. You will also need an active bank account or credit union account where the lender can deposit funds and withdraw payment. Some lenders will accept a prepaid debit card account. Most lenders will also require an ID to verify your identity and that you are a resident of that state.
If you have an outstanding loan or default, you may not qualify.
Curious where you stand?
Gather required documentation
The documents you typically need are:
- Government-issued identification (diver’s license, passport, or state ID)
- Proof of residency
- Bank account details
- Income verification (pay stubs, bank statements, benefits statements)
Fill out the online loan application
Most lenders let you complete an application online in minutes. Ensure all the information you provide is accurate to avoid delays in processing.
Choose a funding method
Most payday lenders will send the money directly to your bank account or prepaid card. Verify how you will get the money.
Receive a $500 loan
After submitting your application, the lender will conduct a review. You could receive a decision within minutes. If approved, funds could be deposited into your bank account within an hour.
New
Turn easy tasks into real rewards – worth up to $499/year!
Average payday loan interest rate across U.S. states
Payday loans are regulated by the state. Payday lending is restricted or prohibited in Arizona, Arkansas, Connecticut, Georgia, Maryland, Massachusetts, New Jersey, New York, North Carolina, Pennsylvania, Vermont, and West Virginia. Other states set maximum interest rates very low. For example, payday loans in Chicago have interest rates capped at 36% APR.
States like Utah, Texas, Nevada, Idaho, Mississippi, Missouri, and North Dakota have some of the highest interest rates, with some exceeding 600% APR.
| State | Average APR | Status |
| Alabama | 456% | Legal |
| Alaska | 435% | Legal |
| Arizona | Prohibited | |
| Arkansas | Prohibited | |
| California | 460% | Legal |
| Colorado | Prohibited | |
| Connecticut | Prohibited | |
| Delaware | 391% | Legal |
| District of Columbia | Prohibited | |
| Florida | 304% | Legal |
| Georgia | Prohibited | |
| Hawaii | 460% | Legal |
| Idaho | 652% | Legal |
| Illinois | Prohibited | |
| Indiana | 382% | Legal |
| Iowa | 336% | Legal |
| Kansas | 391% | Legal |
| Kentucky | 469% | Legal |
| Louisiana | 478% | Legal |
| Maine | 217% | Protections |
| Maryland | Prohibited | |
| Massachusetts | Prohibited | |
| Michigan | 370% | Legal |
| Minnesota | 200% | Legal |
| Mississipi | 521% | Legal |
| Missouri | 527% | Legal |
| Montana | Prohibited | |
| Nebraska | Prohibited | |
| Nevada | 652% | Legal |
| New Hampshire | Prohibited | |
| New Jersey | Prohibited | |
| New Mexico | 175% | Protections |
| New York | Prohibited | |
| North Carolina | Prohibited | |
| North Dakota | 526% | Legal |
| Ohio | 138% | Protections |
| Oklahoma | 203% | Protections |
| Oregon | 154% | Protections |
| Pennsylvania | Prohibited | |
| Rhode Island | 261% | Legal |
| South Carolina | 395% | Legal |
| South Dakota | Prohibited | |
| Tennessee | 460% | Legal |
| Texas | 664% | Legal |
| Utah | 652% | Legal |
| Vermont | Prohibited | |
| Virginia | 173% | Protections |
| Washington | 391% | Protections |
| West Virginia | Prohibited | |
| Wisconsin | 516% | Legal |
| Wyoming | 261% | Legal |
Go to MoneyFor to explore more articles on getting the loans you need.
Repayment terms and options for 500 dollar loans
Payday loans are almost always repaid within seven to fourteen days on your next payday. You pay the full amount you borrowed plus interest and fees. You can find small $500 loans that are repaid in installments. Installment loans are typically more affordable, though the interest rates can still be high. Installment payday loans are generally due within three to twelve months.
Online payday loans in Texas are due within two weeks to six months. Online payday loans in California have a maximum term of 31 days.
Some states allow for extended payment plans. Most of these payment plans involve repaying the loan in installments at no additional cost, according to the Consumer Financial Protection Bureau.
Online payday loans in Louisiana can be repaid in an extended payment plan of a minimum of four installments. Payday loans in Delaware receive a minimum repayment term of 60 days.
In need of funds?
Consequences of late or missed payments
Payday lenders operate differently from regular lenders, so the consequences of missed payments are different but still severe. Many require access to your checking account. If you don’t pay on time, they will attempt to withdraw the amount plus fees. If you don’t have enough money in your account, this can lead to expensive overdraft charges.
Most lenders will also charge additional fees for late payments or rolling over the loan. These fees can quickly accumulate and increase the total amount you owe.
Payday lenders are also known for aggressive collection tactics. Expect phone calls, letters, and, in extreme cases, legal action. If they win the lawsuit, they can garnish your wages or levy your bank account.
Regarding your credit score, many payday lenders do not report your payments to the credit bureaus, but some do. If your account goes into default, many will send it to collections. Having an account in collections will appear on your credit report, damaging your score.
Payday alternative loans
Payday alternative loans (PALs), offered by many federal credit unions, are a more affordable option. The National Credit Union Administration (NCUA) designed PALs to give members a low-cost alternative to payday loans.
PALs have lower interest rates that are capped at 28% APR. The application fee cannot exceed $20. They also have longer repayment terms, ranging from one to twelve months.
To qualify for a PAL, borrowers must usually be members of the credit union for at least one month. The credit union may conduct a credit check, but they are more interested in your banking history and ability to repay. The amount that can be borrowed is generally between $200 and $2,000.
How much money can I get from a bad credit payday loan?
The amount of money you can receive from a bad credit payday loan depends on multiple factors, including the lender’s policies, your income, and state regulations. Generally, payday loans range from $100 to $1,000. Most lenders offer a maximum of $500 to first-time borrowers.
Each lender sets their limits based on risk assessments. For bad credit borrowers, these limits are often at the lower end to mitigate the risk of non-repayment. Lenders use your monthly income to gauge your ability to repay the loan. The higher your income, the more likely you will be approved for a larger loan amount, even with bad credit.
Many states have laws restricting how much you can borrow. Borrowers looking for payday loans in Sacramento are limited to $300. Payday loans in Jackson, Mississippi, are capped at $500. Payday loans in Houston, Texas, have no limits.
While state limits can be frustrating, their purpose is to protect you from falling into debt.
Secure your financing easily—just sign!
What is the process for getting a $500 cash advance with no credit check?
The process for obtaining a $500 advance depends on the type of cash advance you’re looking for. We’ve covered how to get payday loans, but you can also look into new cash advance apps or request a payroll advance from your employer. Either option should let you get a $500 cash advance with no credit check.
Cash advance apps require you to link your active checking account. The app will review your banking history and direct deposits to determine how much to lend you. There’s no credit check and no interest charges. Most apps start low with $20 advances, but you can get a 200 dollar loan from most when you pay on time.
Fees are also minimal, but the structure varies. The app may require a subscription, a flat funding fee, or ask for an optional tip. Many also charge a fast funding fee if you want the cash instantly.
Like with payday loans, they are generally due on your next payday. Many apps will automatically debit the amount from your account. Some will let you change the due date or will refund overdraft fees.
An employer advance is another option that does not require a credit check. Not all employers offer this service, so check with your HR department. The advance will be deducted from your next paycheck, so be prepared for it to be short.
Frequently asked questions
1. Is a payday loan secured or unsecured debt?
Payday loans are unsecured debt since you do not give the lender any collateral or put up anything to get the loan. The lender relies on your promise to repay the loan with your next paycheck.
2. How can I get $500 instantly?
You can take out a cash advance, a credit card cash advance, or short-term loan like a payday or pawnshop loan. Some online lenders provide same-day personal loans. Your employer may be able to give you a payroll advance or you can borrow from friends and family.
3. I need 500 dollars now, What can I do?
Take out a credit card cash advance or request an advance via an app and pay for fast funding. You can also try to sell items or borrow from loved ones. Some employers offer payroll advances, and if they work with an app, funds can be in your account instantly.
4. How can I prove income when applying for online cash advance loans no credit check?
To prove income, you can provide recent pay stubs, W-2s, bank statements, or tax returns.
5. How can I get a $500 loan with bad credit?
Look into cash advance apps, payroll advances, or payday alternative loans from federal credit unions. All three either do not check credit or place less emphasis on your credit score.
Bottom line
Dealing with financial emergencies can be tough. Cash advances and 1 hour payday loans with no credit check can be very tempting. They give you the money you need instantly with very few hoops to jump through. They are designed to provide quick relief, no matter your credit history.
The catch is that payday loans come with high interest rates and fees that can exacerbate financial strains if not managed wisely. Most borrowers end up rolling over their payday loan and getting trapped in a cycle of debt.
Before opting for a short-term loan, evaluate alternative solutions. Consider paycheck advance apps, budgeting tools, or payday alternative loans from federal credit unions. Many of these options are less expensive and come with more favorable terms.
You have options when you need cash fast, even with bad credit. Take the time to do a little research and make a plan to repay the funds you borrow.
