The options that you have when you need a $500 fast cash payday loan are fairly different than the options that you have when you’re looking to take out a $5000 personal loan.
If you only need $500 you have basically two options, to either borrow from a friend or relative, or to take out a payday loan. Banks typically won’t consider lending to someone for that small of an amount. Furthermore, if you need $500 you usually need it in a hurry and don’t want to wait around to be approved for a loan.
If it is a one-time deal and you can borrow money from someone instead of taking out a loan, do it. Especially for such a small amount. However, evaluate whether or not it will put a strain on the relationship you have with the lender and whether or not it’s worth that risk.
Otherwise, a payday loan is your only other option. These type of loans have a bad reputation, but they are actually a great tool if you need money, you need it fast, you are positive you can pay off the loan, and you have no intention of ever taking one out again. Where payday loans can be bad is when you get in a cycle of borrowing, because you can’t afford to pay of the original loan, and you come to depend on them.
The fees for these loans are large, so I would re-emphasize that you don’t want to make a habit out of taking them out. There is usually a 17% origination fee and a 400% interest rate compounded annually. If you’re paying this kind of money to get money you want to make sure that you really need the loan.
All that you will need is a bank account number, a postdated check, possibly proof of employment, and possibly some collateral such as a car- depending on the amount you want and the institution.