How to Get a $500 Loan

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Contributor, Benzinga
June 9, 2022

We’ve all experienced an unforeseen event that demands immediate financial attention. Unplanned medical bills for your pet or a hot-water tank leak happen all the time, and if you’re strapped for cash, a quick small personal loan might be just what you need. Learn more now. 

Who Qualifies for a $500 Loan?

If you’re looking for a small loan from a digital platform like MoneyLion, you need to know the criteria needed to qualify. Many small loan lenders ask you to link your personal banking account to your application. They will then scan your account for criteria, such as detectable income with recurring deposits and transactions and a positive account balance. The account must be in good standing and have been open for at least 60 days. 

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Source: MoneyLion

After the lender analyzes those stipulations, you’ll normally be notified if you’re approved for the loan or not. Note that at some lenders account unemployment, child support and alimony deposits as income. Your credit score and repayment history on previous accounts can also dictate which type of loan a lender is willing to grant you. It is wise to research different lenders as lenders may have different interest rates.

There are also a few steps to take before you begin applying to lenders. First, obtain your credit rating. Not only is this key to obtaining the cash advance loan, it is also a good number to know for future applications like a vehicle or mortgage loan. Second, most lenders allow you to see if you pre-qualify their offered loans without a negative remark on your credit report. It’s also important to obtain all the necessary paperwork when applying for a personal loan whether it be online, at a local credit union or bank. 

Why Do You Need a $500 Loan?

Life has a way of throwing unexpected obstacles or events in your path. While you may have an ironed-out rock solid monthly budget, there is always the chance that something unexpected occurs throwing a monkey wrench in your monthly budget. Unforeseen medical expenses such as a trip to the ER or vehicle mechanical work are events that a microloan can support. 

Where Can You Get a $500 Loan?

There are 4 main options for a personal loan: 

  • Credit unions: Local credit unions can offer personal loans with lower interest rates and more flexible terms than what is offered by other lenders. One thing to note is that sometimes local credit unions only apply to those who are members to apply for a loan. Also, credit unions are more apt to work with borrowers who have fair to bad credit. 
  • Banks: There are a select few major banks and financial institutions that offer personal loans, however, these tend to have more scrutiny involved for approval. 
  • Online lenders: Online lenders offer a quick, convenient way to search, compare and apply for the loan terms that best fit your unique financial position. Most online creditors offer a pre-qualification process which normally occurs after a soft credit check. Again, this is just an inquiry and does not impact your credit in either a positive or negative manner. The hard credit check only occurs when you press the submit button and apply for the loan. Some are geared for high-credit borrowers ranging from 690 to more than 720, which offer high loan amounts and lower interest rates. Other lenders cater to average and below credit borrowers, but  the rates may be higher. 
  • Digital financial platforms: Using a digital financial platform helps you mimic a traditional account while unlocking several innovative features, including small personal loans.
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Source: MoneyLion
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About MoneyLion 

MoneyLion is a financial platform that offers wide range of options for consumers. It’s unique in that it offers a loan known as the Credit Builder Loan. This is a membership-based loan to aid those with poor or no prior credit build credit while saving money at the same time. 

The membership comes with a competitive interest rate, free credit monitoring, access to 0% instant cash advances and rewards for the price of $19.99 per month. MoneyLion’s CreditBuilder Loan is available with no initial credit check as they offer installment-type loans up to $1000. 

Once you’ve linked your membership account to your bank account, a loan offer will be displayed on your user account dashboard. If you’re denied membership, MoneyLion recommends you try linking a different bank account or double-checking that your personal information is correct. 

If you choose to accept MoneyLion’s offer, it is distributed in 2 parts. A portion is released the moment you’re approved, and the rest of the amount of the loan is saved and only released when the entire loan amount has been paid off. If you have a higher credit score, a larger portion of the loan will be disbursed immediately. The remaining funds will be kept in an interest-earning Credit Reserve Account in your name. 

Get Your $500 Loan Today

The need for a small loan is nothing to be embarrassed about. Everyone encounters unexpected expenses, and a microloan can be the ticket to taking care of your immediate needs. 

Compare loan options and rates to find the right lender. Learn more about your personal finances needs and stay up-to-date on financial news with Benzinga

Frequently Asked Questions

Q

Can you get a $500 loan?

A

Yes. Financial platforms like MoneyLion can help. Review the application instructions in this article, and compare your options and rates today.

Q

How can I instantly borrow money?

A

Apply for an online loan. There are many to apply for and some are instantaneous.

About Ryan Wright

Ryan specializes in SEO copywriting and content creation. He uses the mentioned skills to maintain a blog that showcases his published poetry collections.