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Last updated: 05 January 2023
If you’re in urgent need of £500, don’t panic - help is available. While family and friends might be your first choice, there’s a wide range of lenders who will be able to accommodate your needs if that’s not an option.
However, as with any type of borrowing, a few considerations need to be made. So, being the helpful and benevolent price comparison site that we are, we’ve put together a simple guide for applying to borrow £500.
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What would I borrow £500 for?
Life sometimes throws up situations where a small loan is needed. It could be to get your car repaired, buy a new fridge, or just get you through to the end of the month. There’s no set list of reasons, but it’s important to make sure it’s for something important.
The interest on a small, short term loan is generally going to be pretty high. While the fact it’s a lesser amount means you shouldn't have to pay back too much, missing it, thus and accruing late fees, could land you in a sticky situation. So, before you take the plunge, think about whether you can afford to pay it back on time.
How quickly can I get a £500 loan in my account?
Borrowing £500 can often be a speedy process. If you opt for something akin to a payday loan, it can be in your account within minutes, as these are typically the easiest types of loan to get. As these companies understand that cash is often needed in an emergency, they pride themselves on being able to turn around applications very quickly.
How much will I payback on a £500 loan?
This will depend on a few different factors, namely how quickly you can pay it back. If you can return it quickly, you will pay a lot less than if you need it for several months.
One thing that can have a big impact on how much you will pay back is your credit score. If your overall rating is bad, then you might be forced to pay higher interest rates. This is because you will be deemed a riskier investment.
Other factors to be aware of when taking out £500 loans are:
Some lenders may charge you upfront costs for the privilege of being able to borrow money. This is not the standard, however, so you can often find deals without them.
If you fail to make payments, many lenders will charge late fees. While these are to be avoided at all costs, it’s important to understand what they could be before you take out a loan.
Can I get a £500 loan without a credit check?
No. All lenders are required by law to conduct a hard credit check before approving a loan. However, you can see which loans are available to you by conducting a loan comparison, without the need for a credit check or affecting your credit score.
What kind of £500 loans can I get?
While the low borrowing amount will limit your options slightly, there are still different avenues you can take:
- Payday loans: As we’ve discussed, payday loans are the most common type of loans you will find offering £500. They are generally short-term and high-interest, and are often required to be paid back at once, although you can sometimes stagger this.
- Peer to peer loans: Peer-to-peer loans allow you to borrow from individuals, rather than organizations. Platforms like Leap Lending allow would-be lenders to set their own rates, term limits and maximum amounts.
- Guarantor loans: If you are unable to get a loan, or are facing high-interest rates due to a poor credit rating, guarantor loans can help. They require another party to step in and essentially take ownership of the loan on your behalf. While you still receive the money and make payments, they are legally obliged to step up if you stop repaying.
How do I apply for a £500 loan?
Fortunately, applying for a £500 loan can be a relatively painless process. Before you get started, however, you will need to have the following information to hand
- Your monthly salary
- Your expenses, e.g rent, childcare, bills
- What address do you live at now, and is your address history
- Bank account details
- Contact information
- Date of birth
Once you have all this information, you can check to use our handy loan comparison tool to see what’s available to you right now.