It might sound easy to get a £500 loan, but it can actually be trickier than you think. Even if you have a good credit record, lenders will often want you to borrow more money and this means you will be paying back more in interest and costs than necessary because you are borrowing more than you need.
Most people use credit facilities they already have access to in this situation, such as a credit card, or a loan. Although they have their advantages, as they are instant, they can also be expensive, with no repayment plan and it means that you could end up owing money for a really long time.
Also, if you have poor credit limits, then you will be unlikely to be eligible for a loan. This is where a short-term loan can be useful.
Short-term loans
The short-term loan is specifically designed for lending small amounts of money and often considers people who have poor credit records. This is an ideal solution if you need money in an emergency and do not have access to any other methods of borrowing. They have to be repaid quickly too, which means that you will not bear a loan for too long.
Short-term loans can be arranged really quickly, so if you need the money in an emergency, this might prove to be very helpful.
How to Repay the Loan?
The lender will normally make you set up a direct debit so that the repayment goes out on the right day. They will often coincide this with the day that you are paid so that they can guarantee that the money is there. It is important for you to make sure that you can afford that repayment, not only that you have enough money when it is due but also that you can cope financially until you are paid next.
The first thing to do is to make sure that you keep the cost down as much as possible and then the loan repayment will be smaller. This can be done by borrowing the exact amount of money that you need. It is also important to choose a cheap lender so that you do not pay more in the long run.
Therefore, before you take out a loan advance you will need to make sure that you have a plan on how you will repay it. Think about how much money you usually have left over each month and whether that would be enough to cover the repayments.
If not, then you may have to choose a loan with a longer term for repaying in more installments so that it is more manageable. You may also need to think about how you can spend less or earn more so that you can cover the costs and how to set a budget and stick to it.
Will Applying for a Loan Damage My Credit Score?
A soft search is when you check your own credit, or when a lender or credit card company checks your credit to pre-approve you for an offer. Soft inquiries do not impact your credit scores. This allows you to search for a loan in comfort and ensures that you can shop for the best deal.
Hard searches, on the other hand, will affect your credit score and negatively impact your chances of acquiring a loan.
FAQs
Where can I get the best £500 loan?
Searching online is a quick way to identify the best lenders for you and allows you to compare the most competitive deals and get the best £500 loan. However, as with any loan, there are concerns. One such worry is whether people can borrow 500 pound loan with bad credit. To help such people, they feature authorized lenders who specifically offer loans, such as a 500-pound loan, to people with bad credit and those with no guarantor.
Is it possible to get a £500 loan if I have poor credit?
If you have a low credit score and are wanting to apply for a short-term loan, there are now more options than ever before. £500 loans for bad credit have become more popular with many lenders now specializing in providing smaller loan amounts to customers who may have been turned down by other lenders.
Can I get a small loan fast?
For those needing to borrow £500, it may be that they need the money quickly. In times of emergency getting instant cash is essential to help you deal with the situation. There are a lot of lenders who will offer an instant decision, and if you are accepted, you can get the money in your bank as quickly as 15 minutes.
Do all lenders offer £500 loans?
Many lenders now offer loans, such as a £500 payday loan entirely online. It means that you do not have to visit a branch or even talk to someone. Fast, convenient, and very secure, this new way of lending money enables you to get almost instant access to funds from practically anywhere at any time.
Do I have to repay the loan on my next payday?
Previously, payday loans were taken over a month. This is no longer the case, with a vast majority of lenders offering £500 cash loans in the UK over many months.
Budgeting Can Help You Manage Your £500 Loan
It is wise to start by looking at the items that you need to pay for each month. Bills that come in regularly, necessities you have to purchase, like food, and transport to work, and things like this. You will then have a list of your expenses and you will need to add in the loan repayments and see whether you have enough money to pay for it on a monthly basis. If you do not, then you will need to think of a way to get some extra money. If you can stick to the budget, then you will be able to pay off the loan and manage your necessary bills as well.
