What Exactly Can a $500 Loan Do for Me?
A small loan of $500 is helpful in lots of scenarios. Maybe for an emergency car repair, when a household appliance breaks down and needs maintenance, or to buy a new piece of furniture for your house.
You can even use a $500 loan to pay off your credit card bills that you're struggling to manage, or perhaps you have a sick pet and have a vet's bill to pay. A $500 loan is also useful when you are studying or training, but you must make sure you have the income to repay it as agreed.
Who Can I Turn To if I Need 500 Dollars Now?
Family Members & Friends
One of your first options should be those close to you if you need help with money. This should be treated carefully, and you need to be sure that everyone understands the terms and conditions, and that the debt is repaid on time, so you don't damage a personal relationship.
Financial Institutions
Banks and building societies are good sources of loans, although they may take more notice of a bad credit rating. However, their interest rates and fees are usually quite good, relatively speaking, although their loan processes can take time, which is not the best if you need cash urgently.
Loan Brokers
A quick and easy way to get a $500 loan even with bad credit is to use an online broker such as WeLoans. With one simple application form on our website, you will be put in touch with multiple lenders, and they will present you with a variety of loan offers that you can compare and consider in the comfort of your own home.
Borrow 500 Dollars Step by Step
Getting a $500 loan through WeLoans is fast and easy, with just three simple steps:
- Step 1: Fill out the online loan request form on our website with your personal contact details, age, address, phone number, etc, along with information about your financial situation.
- Step 2: Submit the form with one click, and you will get connected to lenders in the WeLoans network. They will quickly send you various quotes which you can look at to see what best fits your situation.
- Step 3: Once you have decided, you can sign the loan contract digitally online, and the money will be on its way to your bank account, usually within 24 hours.
Can I Apply for a $500 Loan With Bad Credit?
When you need a $500 loan and you have a bad credit rating, your options for borrowing money are fewer compared with those with good credit.
Most banks and financial institutions will want to check your credit history, but there are also many lenders all over Australia who will only be interested in your current financial situation, to see if you can afford to repay the loan and still meet your normal household commitments.
This is where a reputable broker like WeLoans can help to find the right lenders who are willing to offer cash loans for bad credit. But you should be aware that interest rates for bad credit loans are usually higher than other loan types.
Which Documents Are Needed for a $500 Loan?
Document requirements for a small loan are fairly simple.
- Firstly, the lender will want to make sure you have a regular income and can repay the loan on time, so they will want to see either your payslips for the last three months or copies of bank statements showing your income.
- Secondly, you will need to have an official form of ID such as a passport or driver's license.
- You will also need to prove your address by using a recent utility bill, and you will also need to confirm your permanent residence in Australia with a document like your Medicare card or a citizenship certificate.
How Long Do I Have to Pay Back the $500 Loan?
Loans for small amounts can be very flexible. If you want, you can repay the loan within a few weeks from your next paycheck if you can afford it, and this can be a good idea to save on interest.
Alternatively, you can spread the repayments over an extended period, maybe even up to a year, so the monthly repayments are more affordable, although you will end up paying a bit more in interest.
It just depends on how much you can afford to pay, and often you can choose an extended period but repay more quickly if you can since for this amount there will not be any early repayment fees.
What if I Fail to Repay My $500 Loan on Time?
Things don't always go to plan, and if you cannot meet the repayment schedule it is important to communicate with the lender and let them know in advance. They may still charge penalties etc but they will hold off drastic action like using a collection agency until you have sorted your affairs out and are back on track.
Typically, not fulfilling payments on time will negatively affect you in three aspects:
You May Have to Pay a Late Fee
Depending on what was in the loan agreement you signed, there may be a penalty fee for late payment. This will vary between lenders, so make sure you understand this when you first take out the loan.
Your Credit Score May Take a Hit
Probably just one late payment on a small loan will not impact your credit rating, however, regular late payments or amounts not paid for more than 60 days will be recorded on your credit score, making it harder to borrow money in the future.
You May Be Charged Additional Interest
You will probably be charged extra interest on the unpaid amount, meaning future repayments will increase.
In general, before you borrow the money you should be really sure you can repay it on time according to the agreement, and this will save you extra costs over time.