$500 Loans With Bad Credit for April 2024

Get a $500 loan with bad credit at one of the lenders verified by our specialists. On 24.04.2024 there are 10 options available to you. Increase your chances of getting a loan — fill out an application with a free credit rating check.
Offers: 10
Updated
04.04.2024
17:12
Best Quick Loan Today 24.04.2024*
Mr. Payday
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Rating by Finanso®
i

The rating by Finanso® is determined by our editorial team. The scoring formula includes a financial product type as well as tariffs, fees, rewards and other options.

Recommended FinScore™
0
300
650
1000
up to $10.000
Mogo
Personal Loan
Rating by Finanso®
i

The rating by Finanso® is determined by our editorial team. The scoring formula includes a financial product type as well as tariffs, fees, rewards and other options.

Recommended FinScore™
0
300
650
1000
$500-$15,000
Rate
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Effective interest rate on the product

up to 46.96%
Term
i

Loan term for the financial product

up to 60 months
Coast Capital Savings
Personal Loan
Rating by Finanso®
i

The rating by Finanso® is determined by our editorial team. The scoring formula includes a financial product type as well as tariffs, fees, rewards and other options.

Recommended FinScore™
0
300
650
1000
$500-$50,000
Rate
i

Effective interest rate on the product

7.5%
Term
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Loan term for the financial product

60 months
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Cash Money
Payday Loan
Rating by Finanso®
i

The rating by Finanso® is determined by our editorial team. The scoring formula includes a financial product type as well as tariffs, fees, rewards and other options.

Recommended FinScore™
0
300
650
1000
50$ - 1500$
Rate
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Effective interest rate on the product

up to 391%
Term
i

Loan term for the financial product

1 - 62 days
GoDay
Payday Loan
Rating by Finanso®
i

The rating by Finanso® is determined by our editorial team. The scoring formula includes a financial product type as well as tariffs, fees, rewards and other options.

Recommended FinScore™
0
300
650
1000
$100-$1,500
Rate
i

Effective interest rate on the product

up to 495.36%
Term
i

Loan term for the financial product

up to 62 days
24Cash
Payday Loan
Rating by Finanso®
i

The rating by Finanso® is determined by our editorial team. The scoring formula includes a financial product type as well as tariffs, fees, rewards and other options.

Recommended FinScore™
0
300
650
1000
$50-$500
Rate
i

Effective interest rate on the product

up to 26%
Term
i

Loan term for the financial product

up to 120 days
Cash 4 You
Payday Loan
Rating by Finanso®
i

The rating by Finanso® is determined by our editorial team. The scoring formula includes a financial product type as well as tariffs, fees, rewards and other options.

Recommended FinScore™
0
300
650
1000
$120-$1,500
Rate
i

Effective interest rate on the product

up to 391.07%
Term
i

Loan term for the financial product

up to 14 days
Loan Express
Payday Loan
Rating by Finanso®
i

The rating by Finanso® is determined by our editorial team. The scoring formula includes a financial product type as well as tariffs, fees, rewards and other options.

Recommended FinScore™
0
300
650
1000
$100-$1,500
Rate
i

Effective interest rate on the product

up to 517.08%
Term
i

Loan term for the financial product

up to 62 days
Speedy Cash
Payday Loan
Rating by Finanso®
i

The rating by Finanso® is determined by our editorial team. The scoring formula includes a financial product type as well as tariffs, fees, rewards and other options.

Recommended FinScore™
0
300
650
1000
$200-$1,500
Rate
i

Effective interest rate on the product

up to 599.64%
Term
i

Loan term for the financial product

up to 14 days
Credit Matik
Personal Loan
Rating by Finanso®
i

The rating by Finanso® is determined by our editorial team. The scoring formula includes a financial product type as well as tariffs, fees, rewards and other options.

Recommended FinScore™
0
300
650
1000
$250-$15,000
Rate
i

Effective interest rate on the product

up to 32%
Term
i

Loan term for the financial product

up to 12 month
Reviews
Royal Bank of Canada
4.6
I appreciate the transparency in the loan terms provided by Royal Bank of Canada, with no hidden fees or charges.
Review
Royal Bank of Canada
4.4
RBC provided me with a flexible loan repayment schedule, making it easier to manage.
Review
Royal Bank of Canada
2.4
I encountered some hidden fees when repaying the loan with RBC, making it more expensive than I expected.
Review
Royal Bank of Canada
2
Unfortunately, the loan terms offered to me by RBC turned out to be less favorable than those of other banks.
Review
Royal Bank of Canada
4.2
It's very convenient to use RBC's online services to manage my loan and make monthly payments.
Review
Royal Bank of Canada
4.2
I obtained my home loan with RBC, and they were very flexible in setting terms that suited my financial capabilities.
Review

$500 loans for bad credit are a type of financial assistance designed for individuals who have a poor credit score. These loans cater specifically to those facing financial challenges or emergencies and may not meet the stringent credit requirements of traditional banks. The term "bad credit" refers to a credit history with a lower credit score, possibly due to missed payments, poor credit management, or other factors that negatively impact creditworthiness.

These loans often come in the form of payday loans or personal loans. Payday loans are short-term loans typically requiring repayment by the borrower's next payday. On the other hand, personal loans offer a slightly longer repayment period and may be either secured or unsecured.

Features

  1. Accessible with Bad Credit. $500 loans for bad credit are designed to be accessible to individuals with less-than-perfect credit scores. This makes them a viable option for those who may face difficulties obtaining loans from traditional financial institutions due to poor credit history.

  2. Quick Approval and Disbursement. One of the key features is the expedited approval process. Many lenders offering these loans prioritize quick approval and disbursement of funds, often within a short time frame. This is especially beneficial for individuals facing emergency expenses or unexpected financial challenges.

  3. Minimal Credit Checks. Unlike traditional lenders, providers of $500 loans for bad credit often conduct minimal credit checks during the application process. This enables individuals with a poor credit history to have a better chance of loan approval, making these loans more inclusive.

  4. Short-Term Repayment Periods. These loans typically come with short-term repayment periods, especially in the case of payday loans. Borrowers are expected to repay the loan by their next payday, providing a quick resolution to their financial needs. However, personal loans may offer slightly longer repayment terms.

  5. Higher Interest Rates. One of the trade-offs for the accessibility of these loans is the higher interest rates associated with them. Due to the increased risk for lenders, interest rates on $500 loans for bad credit may be comparatively higher than those offered by traditional banks. Borrowers should carefully consider the total loan costs, including interest rates and any additional fees, before committing to such loans.

Pros and cons

Pros

Accessibility. These loans are accessible to individuals with bad credit, providing financial assistance to those who may face challenges securing funds through traditional lenders.

Quick Approval. The expedited approval process of these loans ensures that borrowers can access the funds promptly, making them suitable for addressing urgent financial needs or emergencies.

Minimal Credit Checks. Lenders offering $500 loans for bad credit often conduct minimal credit checks, increasing the chances of approval for individuals with a less-than-ideal credit history.

Flexible Repayment Options. Some lenders may offer flexible repayment options, allowing borrowers to choose terms that align with their financial capabilities. This flexibility can be beneficial for those with varying income sources.

Cons

Higher Interest Rates. One significant drawback is the higher interest rates associated with these loans. Due to the increased risk for lenders, borrowers may face elevated costs in the form of interest payments.

Short Repayment Periods. Many of these loans come with short repayment periods, particularly payday loans. While this provides quick resolution, it can also lead to financial strain for borrowers who may find it challenging to repay the entire amount by their next payday.

Potential for Hidden Fees. Borrowers need to be vigilant about potential hidden fees. Some lenders may impose additional charges or fees that are not immediately apparent, impacting the overall cost of the loan.

Risk of Predatory Lending. The market for bad credit loans can attract predatory lenders. Borrowers should be cautious and ensure they are dealing with reputable lenders to avoid falling victim to unscrupulous practices that could exacerbate their financial situation.

How to get a $500 bad credit loan?

Apply for a Loan

  1. Check Your Credit Score. Begin by understanding your credit situation. Lenders often have minimum credit score requirements for bad credit loans.

  2. Research Lenders and Loan Types. Explore various lenders, including online lenders, traditional banks, and alternative lenders. Understand the types of loans available, such as payday loans or personal loans, and their associated terms, including interest rates and repayment periods.

  3. Gather Necessary Documentation. Prepare the required documents, such as bank statements, proof of monthly income, and any additional documents specified by the lender. Having these documents ready can streamline the loan application process.

  4. Choose Between Secured and Unsecured Loans. Decide whether you're open to a secured loan, which may require collateral, or an unsecured personal loan. Secured loans may have lower interest rates, but they involve the risk of losing collateral if you're unable to repay.

  5. Apply Online or In-Person. Many lenders offer online application processes. Fill out the application form, providing accurate information about your financial situation, employment, and other relevant details.

  6. Review Loan Terms. Carefully review the loan terms, including the interest rate, loan amount, repayment period, and any additional fees or origination fees. Understanding the terms is crucial to making an informed decision.

  7. Wait for Loan Approval. After submitting your application, wait for the lender's approval. The quick approval process is a common feature of bad credit loans, but it's essential to be patient during this stage.

  8. Receive Funds. Upon approval, the funds will be deposited directly into your bank account. If the lender requires a direct deposit, ensure your bank account is set up accordingly.

  9. Make Monthly Payments. Once you receive the funds, adhere to the agreed-upon monthly payment schedule. Timely payments can positively impact your credit score and financial credibility.

  10. Monitor Your Credit. Regularly check your credit report to monitor any changes. Successfully repaying a loan can contribute to rebuilding your credit over time.

Requirements and conditions

Requirements

  1. Minimum Age. Typically, borrowers need to be at least 18 years old to apply for a loan.

  2. Canadian Citizenship or Residency. Many lenders require borrowers to be Canadian citizens or permanent residents.

  3. Steady Income. A steady source of income is a common requirement. This could be from employment, self-employment, or other stable income sources.

  4. Minimum Monthly Income. Lenders may specify a minimum monthly income threshold. This helps ensure that borrowers have the financial means to repay the loan.

  5. Bank Account. Having an active bank account is often a requirement. This facilitates the direct deposit of funds and the automatic withdrawal of repayments.

  6. Credit History. While these loans are designed for individuals with bad credit, some lenders may still assess credit history. However, the minimum credit score requirement is generally lower than what traditional banks might demand.

  7. Valid ID. A valid government-issued ID, such as a driver's license or passport, is commonly required for identity verification.

  8. Loan Amount vs. Income Ratio. Lenders may assess the ratio of the loan amount requested to the borrower's income to ensure that the loan is manageable.

  9. No Outstanding Payday Loans. Some lenders may have policies against approving a new payday loan if the borrower already has outstanding payday loans.

Conditions

  1. Loan Amounts. $500 loans with bad credit typically offer a loan amount of $500. Some lenders may provide a range of loan amounts based on individual financial circumstances.

  2. Interest Rates. Due to the higher risk associated with bad credit, these loans may come with higher interest rates compared to traditional loans. Borrowers should carefully review and understand the interest rates before accepting the loan.

  3. Loan Term. The loan term, or the period in which the borrower is required to repay the loan, can vary. Payday loans, for example, often have short repayment periods, typically aligning with the borrower's next payday.

  4. Repayment Schedule. Borrowers are typically required to make monthly payments, but the specific schedule may vary. Understanding the repayment structure is crucial to budgeting and ensuring timely payments.

  5. Deposit Funds. Upon approval, the loan amount is deposited directly into the borrower's bank account. Some lenders may require borrowers to have direct deposit to borrow money.

Best places to get a $500 bad credit loan

  • My Canada Payday is a reputable lender that provides payday loans, including options for individuals with bad credit. They offer a straightforward application process and quick approval.

  • iCash is another online payday lender that offers short-term loans, including those for individuals with bad credit. They provide a simple and fast application process, making it convenient for borrowers facing urgent financial needs.

  • GoDay is known for its payday loans and short-term lending options. They cater to borrowers with various credit backgrounds, making them a potential choice for those seeking a $500 bad credit loan.

  • Cash Money is a direct lender that offers payday loans, installment loans, and other financial products. They have physical locations in addition to an online platform, providing borrowers with flexibility.

Ways to receive the money

  1. Direct Deposit. Direct deposit is a widely used method by payday lenders. Once a loan is approved, the lender electronically transfers the approved loan amount directly into the borrower's bank account. This method is convenient and allows for quick access to funds.

  2. Electronic Funds Transfer (EFT). Some payday lenders use electronic funds transfer (EFT) to send money to borrowers. This process involves transferring funds electronically from the lender's account to the borrower's bank account.

  3. Interac e-Transfers are a popular method for sending money electronically in Canada. Payday lenders may utilize this service to send funds directly to the borrower's email address, allowing for a quick and secure transfer.

  4. Online Transfer Services. Certain payday lenders may use online transfer services to send money to borrowers. These services facilitate quick and secure digital transfers, ensuring that borrowers receive the funds promptly.

Things to pay attention to

  1. Interest Rates. Pay close attention to the interest rates associated with the loan. Given the higher risk of bad credit, interest rates may be elevated. Compare rates among lenders to ensure you choose the most reasonable option.

  2. Repayment Terms. Understand the repayment terms, including the duration of the loan and the frequency of payments. Ensure the terms align with your financial situation, allowing you to make timely repayments without strain.

  3. Fees and Additional Charges. Be aware of any fees or additional charges associated with the loan. This may include origination fees, late payment fees, or prepayment penalties. Understanding the full cost of the loan is crucial for budgeting.

  4. Lender's Reputation. Research the reputation of the lender. Read customer reviews, check for complaints, and ensure the lender is reputable and licensed. Choosing a trustworthy lender helps protect you from potential scams or unfair practices.

  5. Loan Amounts and Eligibility. Confirm the loan amounts offered by the lender and ensure it meets your financial needs. Additionally, understand the eligibility criteria to determine if you qualify for the loan. This includes factors such as minimum credit score requirements and income thresholds.

  6. Impact on Credit Score. Understand how taking out a loan may impact your credit score. While bad credit loans are designed for individuals with bad credit score, it's still essential to manage the loan responsibly to avoid further negative effects on your credit history.

How to repay a $500 bad credit loan?

  1. Understand Repayment Terms. Begin by thoroughly understanding the repayment terms outlined by the lender. This includes the duration of the loan, the frequency of payments (e.g., monthly), and any specific conditions or fees associated with early repayment.

  2. Create a Budget. Develop a budget that incorporates the monthly loan repayments. Assess your income and expenses to ensure you have a clear understanding of your financial capabilities. This step is crucial for avoiding missed payments and managing your overall financial well-being.

  3. Set Up Automatic Payments. Whenever possible, consider setting up automatic payments for the loan. Many lenders offer this option, allowing the specified amount to be deducted directly from your bank account on the agreed-upon dates. Automatic payments can help prevent late payments and ensure a consistent repayment schedule.

  4. Prioritize Loan Repayment. Make loan repayment a financial priority. Allocate funds in your budget specifically for the loan, and avoid diverting these funds to other discretionary expenses. Prioritizing the repayment helps you stay on track and fulfill your financial commitment.

  5. Contact Lender for Assistance. If you encounter financial difficulties and anticipate challenges in making timely payments, it's crucial to communicate with your lender. Some lenders may offer flexibility or assistance options, such as restructuring the repayment plan. Being proactive and transparent can help you navigate challenges and avoid negative consequences.

Alternatives

  1. P2P Lending. Peer-to-peer (P2P) lending platforms connect borrowers directly with individual lenders. These platforms often consider factors beyond traditional credit scores, providing an alternative for those with poor credit. Interest rates and terms can vary, so it's essential to compare options.

  2. Cash Advance Apps. Cash advance apps offer small, short-term loans and salary advances. These apps may consider factors beyond credit scores for approval. However, be cautious of high fees and interest rates associated with some cash advance apps.

  3. Credit Builder Loans. Credit builder loans are designed to help individuals build or rebuild their credit. With these loans, the borrowed amount is typically held in a savings account, and as you make on-time payments, it positively impacts your credit history. Once the loan term is complete, you receive the funds.

  4. Credit Cards. Secured or unsecured credit cards can be an alternative, depending on your credit situation. Secured cards require a deposit, making them accessible for those with poor credit. Responsible use and timely payments can contribute to rebuilding credit.

Editorial opinion

In the realm of personal finance, $500 loans for bad credit have become a pivotal option for individuals navigating financial challenges. For those with poor credit scores, traditional lenders like banks might pose challenges, leading borrowers to consider alternatives like payday lenders or credit unions. The borrowing process often involves assessing annual percentage rates (APR) and understanding the impact on credit scores. While some borrowers turn to pawn shop loans or explore the possibility of rebuilding credit through small loans, others may weigh the pros and cons of securing quick funds despite potentially high-interest rates. It's crucial for consumers to exercise caution, carefully evaluating terms and opting for reputable lenders or financial institutions to ensure responsible borrowing. Additionally, considering financial solutions like credit unions and exploring options to rebuild credit can provide a more holistic perspective on managing short-term financial needs.

Important

Keeping your Debt-to-Income (DTI) ratio below 30-40% of your monthly income is crucial. This will help you avoid potential financial problems in the future. Additionally, always assess the necessity and feasibility of taking a loan, ensuring you can comfortably manage its repayment.

How to Choose a Lender

  1. Make sure to confirm whether the lender is licensed to operate in your province. You can verify this information with your state regulator or attorney general.

  2. Check if the lender is a member of a reputable association, such as the Canadian Lenders Association (CLA). Membership in such organizations may provide an extra level of reliability.

  3. Carefully review all the terms and conditions of your payday loan contract.

  4. Thoroughly examine the interest rates on payday loans and ensure that your contract includes a detailed breakdown of the total cost of the loan.

  5. Take advantage of your right of rescission. Usually, you can rescind the loan within three days after signing the agreement. Alternatively, there is typically a "cooling-off" period, which allows you several days to thoroughly review the contract before making an informed decision to enter into a consumer loan agreement based on the terms specified by the lender.

  6. Choosing a payday lender is a significant decision that demands careful consideration and a good understanding of how such organizations operate.

Methodology

At Finanso, we've carried out a comprehensive analysis of over 70 lenders, assessing them based on 35 different parameters across six key categories: accessibility of loans, customer relations, quality of service, interest rates, and transparency of conditions.

In each category, we carefully considered the most critical factors in selecting a lender. These factors include the interest rates, available loan amounts, minimum credit score, minimum income, application fees, and the speed at which funds are transferred.

At Finanso, we highly value our users, which is why we also focus on the quality of customer service, user reviews, and additional features that can aid our users in making a well-informed decision.

Our ultimate goal is to provide insightful recommendations and expert advice to assist you in selecting a lender that best caters to your specific needs.

FAQ

Can I get a small loan with a $500 credit score?

Obtaining a small loan with a $500 credit score in Canada can be challenging, as this score is generally considered to be in the poor or low range. Traditional lenders, such as banks, may be less inclined to approve loans for individuals with low credit score due to the perceived higher risk. However, some alternative lending options may be available, such as payday lenders, online lenders, or lenders specializing in bad credit loans. Keep in mind that loans from these sources may come with higher interest rates to offset the increased risk for the lender. It's crucial to carefully review the terms, conditions, and associated fees before proceeding with any loan.

Can I get a $500 loan with bad credit without a credit check?

While some lenders offering $500 loans with bad credit may not perform traditional credit checks, many still assess creditworthiness through other means. Some alternative lenders focus on factors like income and employment status rather than relying solely on credit scores. It's essential for borrowers to inquire about the specific requirements of each lender to determine eligibility.

How can a $500 bad credit loan impact my credit score?

The impact of a $500 bad credit loan on your credit score depends on various factors, including your repayment behavior. Responsible repayment can contribute positively to your credit history, potentially leading to good credit. However, missed payments or defaulting on the loan can have adverse effects. It's crucial to understand the terms, make timely payments, and consider the potential consequences for your credit score.

Loan Terms