Consumers in a tough economy find themselves in need of a $500 loan when an unexpected bill happens. Individuals may start falling behind on bills and the only way to keep the lights on or get heat in the cold weather is to pay a pretty big balance. Do not feel alone, many are struggling financially. The other problem that individuals face when searching for a quick $500 loan is that their bad credit prevents them from applying for a loan at their banking institution. Banks will laugh at individuals these days that do not have credit or have a low credit score. Banks have tightened the reins on lending, and this has made it more difficult for the 'average Joe' to get a short term personal loan. What options are available for individuals searching for a small loan of around $500 and have bad credit? If all other avenues of borrowing from a close family member or friend have been exhausted, then one might consider a short term payday loan.
What is a payday loan? A payday loan is a short term personal loan that is available to individuals with good or bad credit. The loans are available in amounts from $100 to $1500. Payday lenders can be found online and the whole application process can be accomplished online. The funds are available, after getting approved, from one hour to 24 hours. The funds are wired to your bank account. Some lenders will prefer individuals to have an open checking account, others will work with applicants that only have a savings account.
Are there fees or charges for a payday advance? Yes, there are fees. To get this type of loan with bad credit there is a price to be paid. Lenders will charge a fee per $100 borrowed. These fees vary from lender to lender, so it is best to ask when you get approved what the terms of the loan will be. These fees and service charges are the down side of this type of loan. A careful consideration will need to be made of this added expense. Factor in fees when requesting a loan amount of $500. It is a proven fact, that lenders will be more apt to lend smaller loans to individuals that have bad credit or are applying for a payday loan for the first time. A service charge could occur when a person is not able to pay back their loan in the amount of time laid out in the terms. Usually loans need to be paid back in about two weeks after applying. Some lenders will extend this time period, but it may cost the consumer a service charge tacked on to the loan.
Payday loans are available to individuals that have bad credit. To borrow responsibly, one would have to inform themselves about the pros and cons of a payday advance loan. Keep loan amounts below $500, and this will help when having to repay the loan and fees incurred. Payday loans are only a temporary solution to financial problems. They should only be used in emergencies.