Sometimes a $500 loan is all that stands between you and disaster. With time to plan, many of us could find a way to scrape together $500, but life doesn’t always give us the time we need. There are going to be occasions where an emergency pops up and you need money to cover expenses now. If you’re in a situation where you’re living paycheck-to-paycheck and trying to get ahead, a $500 expense can derail your budget and leave you scrambling just to pay the bills.

A 500 dollar loan is the easy solution, but what if you have poor credit and you can’t get approval from a typical direct lender? The good news is, you still have options. With the right $500 loan, bad credit won’t stop you from securing the funds you need to cover a late paycheck or an emergency like a blown radiator that makes your car undrivable and compromises your ability to get to work.

With no need for a credit check in many cases, you’ll enjoy a fast approval process that ensures you’re able to get back on track. Note that not every lender is the same, each with different loaning practices, but many do not rely on using the common credit reporting bureaus and look to use other indicators besides just a credit score, like employment history.

However, there are a few things to think about first. Why would you take out a $500 loan and when is the right time to do so? What are the benefits of going this route? Are there any qualifications you should know about? Here’s what you need to know before you apply for a $500 loan.

What Makes a $500 Loan Unique?

When you think of taking a bank loan, you’re usually applying for a large sum, like tens of thousands of dollars to buy a car or hundreds of thousands to buy a home. A small loan is different in a few key ways, aside from the smaller amount you’re asking for.

Generally speaking, you’re going to pay back a loan of this size relatively fast, likely by the time you receive your next paycheck. This is why small dollar loans are sometimes referred to as payday loans. If this is your plan, you can likely pay back the loan without ever paying much interest.

Even so, you may be denied a small loan by traditional lenders like a bank if you suffer from poor credit. Luckily, you can still get a $500 loan with fast approval and minimal hassle when you work with Personal Money Network and the direct lenders we work with.

Possible Qualifications

If the prospect of a credit check has you worried that you won’t get the 500 dollar loan you need to take care of unanticipated expenses, you’ll be glad to learn that short term loans can be an option. However, you can’t just walk into a lending office, grab the cash, and go. There is still a short application process to go through, and you may have to meet certain minimal requirements to qualify.

These can vary by state and by lender, but the minimum requirements are typically to be over the age of 18, employed, and U.S. resident with a checking account to apply for a loan. You may need to provide proof of steady income as well. Having this information on hand when you apply for a $500 loan only helps to get speedy cash and expedite the process and ensure that you receive a loan fast.

Why Take a $500 Loan?

There are plenty of reasons why a small loan like $500 might be necessary. For example, many college students find themselves waiting on financial aid after the semester has started. While colleges and universities are often willing to let you start classes while your tuition bill waits on financial aid to come through, you still have to pay for books, and this requires cash that you simply may not have on hand.

Suppose you’re in a job that doesn’t pay on a set schedule and your check is going to be late. You might need money now to pay bills, just until your pay check comes through. What if your car breaks down and repairs aren’t covered under the warranty? What if a tree branch comes through your front window and you need to fix it fast and get reimbursed by your insurance company later?

What if you have a medical emergency and you have to pay the deductible? What if a loved one passes away suddenly and you need to make last minute travel arrangements?

There are all kinds of unanticipated expenses that might call for a relatively small amount of cash that you simply don’t have. Given time, you could budget for a few hundred dollars, but when you need money to pay for immediate and unexpected costs, a $500 loan can be the simple solution.

Who Should Consider Payday Loans?

There are two main reasons to consider a payday loan when you’re dealing with unexpected emergency expenses. The first is if you have poor credit. With a typical $500 loan, bad credit could be an issue and going to a bank might not be an option.

But you won’t have to worry much about being denied so long as you meet the qualifications. There is no guarantee, and you have apply to try, but even with bad credit many receive the funds they need.

The second reason is time. When you have an emergency, you can’t afford to wait for a bank to pore over documents and run credit checks. A quick approval process that can help you to get a short term loan to cover bills or emergency expenses is something you can’t put a price on when you need fast cash.

Benefits of a $500 Payday Loan

You’re already aware of several benefits of short term loans, which means you’ll enjoy a fast application and be notified quickly if accepted. In addition, small loan amounts mean you can pay your debt faster, to avoid additional interest payments.

Even better, you can take out a small loan for any number of reasons. While there are definitely emergency situations that might cause you to seek a $500 loan, one great benefit of taking out a short-term loan is that you don’t necessarily need an emergency to do so.

Maybe you want to take a vacation or invest in a time-sensitive business opportunity. Perhaps your lease is up and you need money for a deposit on a new apartment while you wait to be reimbursed for your prior deposit. Payday loans are not discriminatory – you can pretty much use them for any purpose. As long as you plan accordingly, you can enjoy the many benefits inherent to short term loans.