Being short on cash is stressful, but it doesn’t have to be with the help of a short-term loan for £500. Whether you’ve had an unexpected bill come out of your account, or you’ve had to pay for emergency car repairs; a 500 pound loan can come in handy when you’re between paychecks.
But applying for a short-term loan should be your last financial option. It would be best if you first approached friends and family or even sell some of your old stuff online to raise the funds you need. Short-term loans can be expensive, and if you don’t repay them on time, it could damage your credit score.
500 pound loans are quick and easy to apply for, and you can apply directly to a lender or use a broker, like us, completely free of charge. Learn more about 500 pound short-term loans below.
Top Tip: Always approach friends and family first before considering applying for a short-term loan. Wondering how else you can make cash quickly? Check out these 10 Easy Ways to Make Cash Fast.
What is a £500 loan?
As you’d expect, a 500 pound loan is a loan for the amount of £500. It’s short-term in nature, which means you don’t usually take longer than 24 months to repay the amount in full. These loans exist purely for unexpected or emergency situations; they’re not to be used on non-essential items.
These loans bridge a monetary gap between paydays, and the loan is usually repaid in a lump sum or in monthly instalments, anywhere between three and 24 months.
What can I use a £500 loan for?
As we’ve just said, these loans are specifically designed for short-term essential use. So if after you’ve rallied around friends and family for cash and you’re still short, you might want to consider applying for a 500 pound loan as a last resort. You can spend your loan on getting your car fixed, paying an unexpected bill, or buying essential food. A short-term loan is not supposed to be spent funding a night out or a leisure shopping spree, for example.
Don’t rush into applying for a short-term 500 pound loan. Take a moment to ask yourself if what you need the loan for is essential, and whether you should consider a 500 pound loan or a smaller amount. If you’re struggling with debt management, we advise you to visit the Money Advice Service for free help and advice on money management.
Am I eligible to borrow £500?
Yes, maybe. You might be eligible to borrow £500. But before you jump in head first, check out the direct lender criteria below, do you meet them?
- You’re over 18
- You’re a UK resident with a permanent address
- You’re employed and have a regular income
- Have a UK bank account with a debit card
- Your wages are paid into your UK bank account
- You are NOT currently bankrupt
£500 Loan FAQs
How do I get a £500 loan direct from a lender?
Applying for your 500 pound loan directly with a lender is a straightforward process, you visit your chosen lender’s site and fill in an online application form. If you wanted to make sure you were matched to the most suitable lender, you could work with a broker, like us. We offer a completely free service, helping consumers, just like you, find the best short-term loan deals on the market. We will give you an instant decision and then match you with the best-fit lender.
Remember: ThisLender, and the lenders on our panel, are authorised and regulated by the Financial Conduct Authority (FCA).
Am I guaranteed a 500 pound loan?
Just as with any loan application, you’re not guaranteed acceptance for a 500 pound loan, either. Whether your application will be accepted or not depends on your current circumstances and also whether you meet the direct lender criteria listed out above. Check the criteria before applying for your loan.
Can I apply for a £500 loan with bad credit?
Yes, you can apply for a £500 loan with bad credit or poor credit history. We work with lenders willing to consider applications with varied credit histories, so that shouldn’t be a problem. Lenders offer a selection of bad credit loans, including guarantor loans.
If you have bad credit, you should look at ways of improving or rebuilding your credit score with this article from Experian. This will help to increase your chances of your application being accepted.
Can I get a £500 loan with no credit checks?
No, unfortunately not. It isn’t possible to apply for any loan without getting credit checked, even just for a 500 pound loan. The process of credit checking is how Lenders will decide whether to lend you the money or not. It’s a standard requirement for all UK direct lenders.
Remember: ThisLender will not perform a credit check; lenders will complete a soft search during the application process. If you accept a lender’s loan offer, they will perform a hard credit search.
Do I have to repay the £500 loan on my next payday?
Lenders will always want to see you make regular loan repayments on your 500 pound loan. Lender repayment terms and conditions can differ, but most offer you the chance to pay the loan amount in full on your next payday or a week (7 days) after you received the loan. You can also pay in monthly instalments until the loan is repaid in full.
Remember, you need to make sure there are enough funds in your bank account ready for the repayments to be taken.
Do you need a guarantor for a £500 loan?
This will depend on your personal circumstances. If you have good credit, you probably don't need a guarantor. However, if you have bad credit, a lender may require you to have a guarantor to secure the £500 loan. This could be a family member or a friend. Learn more about guarantor loans here.
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Representative 97% APR (fixed)
Representative example: Borrow £1000 for 24 months at 24 equal instalments of £77.48. Total amount to repay £1,859.52. Interest £859.52. Annual interest rate 70% (fixed). APR rates range from 45.3% APR. to 1575% Max APR. Your APR rate will be based on your circumstances.
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