Sudden emergency expenses can arise at any moment of our lives. If you live from paycheck to paycheck, then such unexpected and unplanned expenses can be a big burden even if that expense is $500 or less. A short term loan of $500 which you can repay with the next paycheck or next few paychecks can be of great help in such emergency situations.
Short term $500 loan today can be availed from traditional lenders like banks or credit unions or others like payday loan lenders. Such loans are usually disbursed quickly and come with repayment periods that last from a few weeks to 2-3 months.
Comparison of different $500 loan today options
Before opting for a $500 loan today, you will need to compare different options that are available and then make the choice.
- The interest rates for a $500 loan today tend to differ from one lender to another. Some lenders even levy additional charges like processing fees, late payment fees, etc. Understand all the fees and interest rates and then select the correct lender.
- Verify the reputation of a lender before applying for the loan. It is best to go for a reputable lender to avoid scams and fraud.
- A small $500 loan comes with a short repayment period. Hence, you will need to make a large payment with each installment. You have to make the calculations and understand the time period that you need to make the repayment, and then accordingly select a lender. Do not go for a loan if you cannot afford to make the repayments.
- Payday loans are not allowed in certain states, while many states come with strict regulations for payday loans. Verify the laws in your state regarding $500 payday loans today before opting for them.
How to apply for a $500 loan today?
A borrower would need the following to avail of a $500 loan today:
- Income and employment details, such as weekly/monthly earnings and information about the employer, have to be furnished by you.
- You will have to provide personal information like name, phone number, identification documents, and other details required by the lenders.
- You will have to furnish documents that show your banking and finance history for the past ninety days.
- If you get welfare funds, then details about the frequency and quantity of such payments need to be provided.
Pros and Cons of $500 loan today
Some of the benefits of $500 loan today are:
- The approval process for short term small loans is fairly lenient. Even borrowers getting welfare payments or with bad credit can get easily approved for such loans.
- The turnaround time is really quick and your application can get processed within a few hours.
Some of the disadvantages of $500 loan today are:
- The interest rate on such loans can be pretty high. Payday loans come with interest rates of 20 percent and upwards.
Some lenders are predatory and tend to take advantage of people in dire need of emergency cash. Hence, borrowers need to be extra careful about the reputation of the lender when taking out a $500 loan today.