Are you looking to borrow £500?
Whatever your needs, taking out a personal loan to borrow money doesn’t need to be as intimidating or complicated as it first seems.
With our complete guide to getting a £500 loan, we’ll talk you through all of the options, as well as the key things to consider before you make a decision.
Where can I get a £500 loan?
There are many options available to you if you’re looking to borrow £500, including loans.
If you are thinking of using a loan for a little extra cash flow to make ends meet before payday, or smaller purchases, you may prefer to use a credit card. Doing so will give you more flexibility for repayment than a loan might, and you may have the option of additional rewards for regular spending.
To find and apply for a credit card with which you can borrow 500 pounds, you can start your search with our credit card finder.
Alternatively, you might choose to opt for a personal loan of £500 instead. These can be a good way to borrow if you’d prefer to limit yourself to a specific amount and don’t mind a more fixed repayment process.
Am I eligible?
Whether you’re interested in a credit card or a personal loan to borrow £500, your eligibility will be based on the lender’s, or card provider’s, criteria and your individual circumstances.
In most cases however, there will be some common things that lenders may use to determine your eligibility, such as:
- Your credit history or credit score
- Your income
- Your debt to income ratio (the amount that you already pay towards debts)
- Loan purpose (such as getting married, or home renovations)
To see whether you might be eligible for personal loans of £500 or more, you can check your eligibility with our free tool.
Can I borrow £500 with a bad credit score?
Your credit score is a rating, based on your credit report, to give potential lenders an indication of your credit history. This helps them to decide whether or not they should approve your loan or credit card application.
If you are currently experiencing a lower credit score than you would ideally like to have, then it doesn’t necessarily mean you won’t be able to borrow. However, it may mean that lenders offer a higher interest rate, or will limit the amount you can borrow with them.
The good news is that, with our personal loan finder, you can browse a number of deals without impacting your credit score. This is because we use what’s known as a “soft search” to check your credit report, meaning that it won’t appear on your credit history.
Like all forms of credit, the more you demonstrate your ability to borrow and pay back responsibly, the higher your credit score will eventually be. This will make lenders more likely to offer you higher sums or better interest rates in the future.
Can I apply to borrow 500 pounds online?
Yes, you can. Through our easy-to-use online tools, you can quickly and easily compare multiple options for borrowing loans of £500 or more.
For more information, simply head to our personal loans page and then use our loan eligibility checker to find out your options.
Once you’ve found a lender and option you like, you can choose to apply for a £500 loan. The lender will then check your eligibility and, if you are approved, present you with the terms of the agreement for the loan.
This will include the loan amount, the repayment term, any additional fees or charges that you will need to be aware of. Based on these figures, it will also tell you the total amount expected to be paid at the end of the repayment term.
If you are happy with the terms and offer presented to you by the lender, then you can choose to accept the loan.
Will I receive my loan on the same day?
Once your application has been approved by the lender, personal loans are typically very quick to process.
This means that it’s common for your loan to be in your account on the same day that you accepted the offer.
Can I afford to borrow 500 pounds?
When a lender presents you with their offer and the terms of the personal loan, it will include details about the expected monthly repayments. You should pay close attention to this and consider whether it is affordable in your current monthly budget.
You should not take out a loan if the monthly repayments do not fit within your budget, as missing repayments can cause additional charges to be applied. Missing repayments may also negatively impact your credit score.
What can I use my £500 loan for?
If you’re looking to borrow £500, you likely already have a good idea of what you want to use it for.
Nevertheless, here are some of the most common reasons for taking out personal loans, as well as additional information and considerations for each use case:
How do I repay the money I’ve borrowed?
Once you have accepted the terms of the loan and the money has been paid into your account, you will be required to repay the agreed instalments on the agreed schedule.
This might often mean monthly repayments, which take the applied interest into account. Your lender will usually send you statements with details around your remaining balance, for your reference, but you can also often contact them and request a statement too.
If you want to repay the loan early, check the terms of your agreement to see if an early repayment charge would be applied. If so, it’s up to you whether you would prefer to pay off the loan sooner, at the cost of the early repayment fee.
Once you have repaid the £500 that was borrowed, plus the agreed interest and any fees, you will have paid off the loan and the account will be closed.
Check your eligibility and start comparing £500 loans
Are you ready to borrow £500? Head over to our eligibility checker to see how much you’re able to borrow and find the right loan for your needs.
Learn how much you can borrow
Do you have a different amount in mind than the one above? Check out our Loan Amount Guides series below.