Payday loans are all about getting the finances in the shortest possible time. Most people even know it as a reliable choice for short-term financial solutions. However, in cases of a large amount like $500, many of the new borrowers wonder how much a $500 payday loan would cost. This even becomes another concern if you are running with a poor credit score.
As a general rule, payday loans charge high fees as the interest rates, but they should vary depending on various conditions. Let’s explore this insightful guide and find out about the actual costs of $500 payday loans.
Can I Get $500 Payday Loans With Bad Credit?
Though your credit score is relatively poor, it is still possible to get a $500 payday loan. Many of the payday lenders offer payday loans for people with bad credit to help them with their financial difficulties. For instance, lenders may look for recent income for approval. You can get any of the loans under this category, like same-day loans for instant transactions, second chances payday, tribal payday loans, or loans without a single credit score checking.
These kinds of loans often come with higher fees and costs compared to the loans given to those with good credit scores. But the thing is, you need to ensure you are getting the right loan for you. Also, you need to ensure quick repayment to avoid further continual hassles of the debt cycle.
How Much Does A $500 Payday Loan Cost On Average?
A $500 payday loan typically costs around $75 in fees. Most of the payday lenders charge about $10 and $30 for every $100 you have borrowed from them. In case you are planning to get the $500 loan at once, you can expect to pay a fee between $50 and $150. However, the overall cost may vary depending on the lender and the state you live in.
Each payday lender sets the pricing structure for the borrowed amount. Even some states have laws that cap the maximum fees a payday lender can charge. But all in short, payday loan costs are typically higher compared to other types of loans, such as personal loans or credit cards. Most often, the individual fee may seem small, but the annual percentage rate on payday loans is relatively higher, exceeding 400%.
Will It Cost More If You Can’t Repay A $500 Payday Loan On Time?
You may need to repay the $500 payday loan on time. In case you miss it, you might need to deal with a continued debt cycle. This includes late fees or additional interest charges, which often increase the overall cost. However, the fees depend on the laws of different states. Your bank or credit union often charges you with ‘NSF,’ which mainly refers to a non-sufficient funds charge. It is more likely an overdraft fee due to a lack of funds in your account.
There will be additional charges, such as a bounced check fee, possible collection fees, and court costs if the collection agency or payday lender sues you. This overall has a bad impact on your credit score, and you may encounter more hurdles in getting loans in the future.
Is A $500 Payday Loan Worth The Cost?
Though the interest rate seems higher compared to the traditional loan options, it still seems cost-effective compared to loan options, especially when you’re in need of urgent finances. It can even be a good short-term solution if you are certain to repay the loan on your next payday. However, payday lenders demand repayment within two weeks, which sometimes makes it difficult for some borrowers to pay on time.
Many borrowers choose to renew or extend their loans. According to the CFPB report, 80% of payday loans are required to be rolled over or renewed within two weeks.
What are the Basic Requirements to Apply for a $500 Loan?
Though you can skip the credit check due to poor score to most payday lenders, here are some basic requirements you need to ensure to get eligible for the $500 payday loans:
- First, payday lenders will check your age. You should be at a minimum of 18 years old to apply for these loans in the United States.
- You may need to show a steady source of income to get eligibility. Here, you have to submit proof of income in the form of pay stubs, bank statements, or other documentation.
- As with other checks, you must have a valid bank account in your name where the complete transactions will be done. The lender will deposit the loan fund three, and you can withdraw payments.
- In most cases, you need to show a government-issued ID, such as a driver’s license or passport, to verify your identity.y
- Sometimes, lenders want to show you the complete documentation of your address where you are currently living.
How Do You Apply for A $500 Loan With No Credit Check?
Payday loans are typically short-term loans where you need to repay dollars after the next paycheck, which is usually within two to four weeks. As the rules and terms of the payday loans, you will need the needed funds very quickly. However, all you need to ensure is the right steps to apply for the loans in the interest. Follow these simple checks to avoid mistakes:
Step 1: Find Reliable Payday Lender
Before anything else, you need to ensure reliable lenders that specialize in offering payday loans with no credit checks. Don’t get hurry here. Do your own best research and find trustworthy payday loan providers for your needs. For instance, it’s better if you can compare different lenders to get the best rates and terms according to your situation.
Step 2: Gather The Necessary Documentation
In this step, check and make sure you have all the necessary documents right in your hand. If you can, ask your payday lender for any specific requirements and documentation needed to qualify for the loan.”
Step 3: Submit Your Payday Loan Application
Now, you will have to fill out an application provided by your lender. Most payday lenders offer online applications to make the process efficient. Ensure to insert all the necessary information in the application to avoid distractions.
Step 4: Wait for Approval
After submitting your application, it will go through a quick check for approval. Since there is no hassle for credit checks, the process is quicker, sometimes done within minutes.
Step 5: Receive Your Funds
Once the application is approved, the lender will deposit the $500 directly into your bank account. The time it takes for the funding can vary, but it often occurs within one business day.
Advantages of Getting a $500 Loan with Payday Loan Options
Even with higher interest rates, getting a $500 payday loan with payday lenders offers several advantages. Have a plan and make an informed decision:
i) Fast Loan Processing:
Payday loans are typically quick loan processing options where you can get your needed funds in the shortest possible time. With same-day loan options, it would take only a few hours to deposit your money in your bank account.
ii) Unsecured Loan:
As you get in car title loans, traditional auto loans, or mortgages, payday loans are free of any collateral. You don’t need to give the lender any collateral or put anything up in return to get approval.
iii) Minimal Requirements:
Payday lenders typically ask for fewer requirements than traditional lenders. The credit score is not a major factor here. With minimal to no credit check, you can secure your funds quickly.
iv) Flexible Repayment Options:
The repayment schedules for payday loans are designed according to your paycheck dates. You can easily repay after you receive your income. Lenders often offer flexibility to extend the loan or make smaller payments if it seems hard for you to repay the full amount at once.
In Closing
Overall, $500 seems like an appeal for quick cash, but it’s important to understand all the related costs and fees with the loan. It will cost from $50 to $150 and may add additional fees if you fail to repay on time.
However, before making a decision, consider professional lenders with transparent fee structures to avoid potential surprises. In these ways, you can make more informed decisions and avoid any unexpected costs down the line.
Frequently Asked Questions
Are payday loans a good idea to get $500?
Yes, payday loans are a quick and effective process to help you with emergencies. Though they can be expensive, it is important to understand all the under costs and terms set by the lender you have chosen.
Can I pay off my $500 payday loan early?
Yes, you can pay off your loan as easily as possible. Even paying off earlier offers various advantages, such as lower fees or interest rates, depending on the lender. Must check out the loan agreement in this instance.
