What to know first
- The same $500 can cost about $40 or over $250 depending on the product and term.
- Credit union payday alternative loans (PALs) cap APR at 28%.
- With a single-payment payday loan, the full balance plus the fee is usually due on your next payday.
Where can you get a $500 loan?
Most $500 loans come from one of five places. They differ in speed, credit requirements and especially total cost. The table compares typical features; actual terms depend on the lender, your state and your credit.
| Option | How you repay | Typical cost | Good to know |
|---|---|---|---|
| Personal installment loan | Fixed payments over several months | Varies widely by lender and credit; some lenders charge more than 36% APR | Online lenders often decide within a day; compare APR and total repayment. |
| Credit union PAL | 1 to 6 months (PAL I), up to 12 months (PAL II) | APR capped at 28%, application fee up to $20 | You usually need to be a credit union member; PAL I may require one month of membership. |
| Payday loan | Full balance plus fee on your next payday | Often $10 to $30 per $100 borrowed for about two weeks | Not allowed in every state. Renewing or reborrowing adds a new fee each time. |
| Paycheck advance (employer or app) | Taken from your next paycheck | Can include subscription, express or optional tip fees | Amounts are often below $500 at first; check every fee before you accept. |
| Credit card cash advance | Part of your card balance | Cash-advance fee plus interest from day one, usually above the purchase rate | Only possible if you already have a card with available cash limit. |
Sources: CFPB: What is a personal installment loan? · NCUA: Payday alternative loans · FTC: Payday and car title loans
What does a $500 loan cost?
These examples use simple monthly installments with no fees and are not offers. They show how the APR and the term change what you repay. At 28% APR over 6 months, 6 payments of about $90.27 repay about $541.62. At 36% APR over 6 months, payments are about $92.30, or $553.79 in total. At 36% APR over 12 months, payments drop to about $50.23, but you repay about $602.77. At 160% APR over 6 months, payments are about $126.24 and the total is about $757.44.
A payday loan works differently. With a $15 fee per $100, a $500 two-week loan costs $75, so $575 is due on payday. If you cannot repay and roll it over three times, you pay four $75 fees ($300) and still owe the original $500. That is why the fee looks small but the APR is often near 400%.
Sources: CFPB: Interest rate and APR · FTC: Payday and car title loans · CFPB: Payday loan questions and consumer rights
Can you get a $500 loan with bad credit?
Often, yes. Smaller loans are easier to approve than large ones, and many lenders that make small loans look at income and bank history as well as your credit score. Expect a higher APR if your credit is poor, and compare the total repayment rather than the payment alone.
Most lenders ask for proof of regular income, an active bank account in your name, a valid ID and a phone number and email. Some check your credit with a soft inquiry first and a hard inquiry only when you formally apply. Ask which one applies before you agree.
Sources: CFPB: What is a personal installment loan? · CFPB: Hard and soft credit inquiries
How to get a $500 loan online
Decide the smallest amount that solves the problem and the payment you can afford each month. Then check your options in order of cost: a credit union PAL or your bank, then installment lenders, and only then short-term products such as payday loans.
- Check your bank or credit union first, especially if you are already a member.
- Submit one request online to see whether a lender can offer you an installment loan. Our matching service is free and you are not obligated to accept.
- Compare the APR, fees, number of payments and total repayment on every offer.
- Read the repayment date and what happens if a payment is late or returned.
- Never pay an upfront fee to "guarantee" approval; that is a common scam.
Sources: NCUA: Payday alternative loans · FTC: Advance-fee loan scams
Ways to cover $500 without a loan
Ask the company you owe for a short extension or payment plan; many utilities, hospitals and landlords offer one. Local assistance programs, 211 services and some employers offer emergency help for rent, utilities or car repairs. Selling an unused item or picking up a short shift can also close a small gap without interest.
Sources: FTC: How to get out of debt · FTC: Payday and car title loans
Common questions
How fast can I get a $500 loan?
It depends on the lender and your bank. Many online lenders decide within a day and send funds by direct deposit after you accept, but timing is never guaranteed.
Can I get a $500 loan with no credit check?
Be careful with "no credit check" claims. Most lenders verify your identity and many check credit in some form. A soft check does not affect your score; a hard check can.
What is the cheapest way to borrow $500?
A credit union PAL, capped at 28% APR, is usually among the cheapest options. A payment plan with the company you owe can cost even less.
Is a $500 payday loan legal in my state?
It depends on the state. Some states ban single-payment payday loans or cap their cost. See our state guides for the rules where you live.
Sources and corrections
The sources below informed this guide. Their publication dates and scopes differ; our publication date does not mean every linked law or product was newly issued. Read our editorial approach or send a correction to support@5minutesloan.com.
- CFPB: What is a personal installment loan? (opens in a new tab)
- NCUA: Payday alternative loans (opens in a new tab)
- FTC: Payday and car title loans (opens in a new tab)
- CFPB: Interest rate and APR (opens in a new tab)
- CFPB: Payday loan questions and consumer rights (opens in a new tab)
- CFPB: Hard and soft credit inquiries (opens in a new tab)
- FTC: Advance-fee loan scams (opens in a new tab)
- FTC: How to get out of debt (opens in a new tab)