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What is a $500 payday loan?

A $500 payday loan is a short-term loan that can be quickly approved and quickly paid out to you - but which comes with high fees.

Australians generally use $500 payday loans to cover pressing expenses, such as rent or an electricity bill.

What is a $500 bad credit payday loan?

A $500 bad credit payday loan is a short-term loan that is available to people with bad credit histories.

Lenders generally prefer to deal with borrowers who have good credit histories, because they’re considered to be more likely to repay the loan and therefore less of a risk. However, there are some lenders in Australia that will issue $500 payday loans to people with bad credit.

Who offers $500 payday loans?

If you want a $500 payday loan, you’ll have to speak to a smaller provider that you may not have heard of, rather than a well-known lender. Banks and credit unions generally avoid payday lending; instead, it’s done by smaller non-bank lenders, which are often online-only providers.

How do you take out a $500 payday loan?

The most common way to apply for a $500 payday loan is over the internet. Generally, the payday lender will want to gain an understanding of your identity and financial position, and so will ask for your name, date of birth, address, driver’s licence number, employment details and income.


How long does it take to get a $500 payday loan?

Depending on the lender, your $500 payday loan application may be assessed and paid out within minutes. However, depending on your bank, it might take a couple of business days before the money lands in your account.

How much will a $500 payday loan cost?

Payday lenders aren’t allowed to charge interest. Instead, they make money by charging fees - which are usually steep. These fees may include:

  • A one-off establishment fee of up to 20 per cent of the loan amount
  • A monthly account-keeping fee of up to 4 per cent of the loan amount
  • A government fee
  • A penalty fee if you default on the loan

What are the pros and cons of $500 payday loans?

$500 payday loans are a double-edged sword: they’re designed to quickly solve a problem - but at a high price.

If you need money in a hurry, a $500 payday loan might be suitable, given that your application could be assessed and authorised within minutes.

However, that quick money would come with high fees attached - so high that the cost of ‘buying’ the money might be equivalent to paying an annual interest rate of more than 700 per cent.

Repayment scenarios for a $500 payday loan

Here’s how much you’ve have to repay if you were charged the maximum 20 per cent establishment fee and maximum 4 per cent monthly fee:

  • 1-month loan term = $620
  • 2-month loan term = $640
  • 3-month loan term = $660
  • 4-month loan term = $680
  • 5-month loan term = $700
  • 6-month loan term = $720

Can you get a $500 payday loan if you're on Centrelink?

Some lenders will give you $500 payday loans if you’re on Centrelink benefits - even if you have bad credit.

However, you can’t assume that all payday lenders will be willing to issue loans to people on Centrelink benefits, because each lender has its own policies. Also, even when lenders are willing to lend to Centrelink recipients, they might only do business with select individuals based on their unique financial circumstances.

Can self-employed people get $500 payday loans?

Yes, some lenders are willing to give $500 payday loans to people who are self-employed. Typically, self-employed borrowers are regarded as riskier, because their income seems less reliable. However, there are some payday lenders that take a more open mind to self-employed borrowers and are willing to give them loans.

What are some alternatives to $500 payday loans?

There may be cheaper alternatives to $500 payday loans, including free financial counselling, the No Interest Loans Scheme. You might also want to speak to the National Debt Helpline.

Payday loans are an expensive way to solve a problem, so while a $500 payday loan might be suitable to some people in some circumstances, you should think carefully before proceeding.

Frequently asked questions

How are personal loans regulated?

Personal lenders in Australia are regulated by ASIC (the Australian Securities & Investments Commission) and must follow responsible lending rules. That means they can’t lend money without making “reasonable inquiries” about a borrower’s financial situation and ensuring the loan is “not unsuitable” for them.

Can I get a personal loan if I receive Centrelink payments?

It is hard, but not impossible, to qualify for a personal loan if you receive Centrelink payments.

Some lenders won’t lend money to people who are on welfare. However, other lenders will simply consider Centrelink payments as another factor to weigh up when they assess a person’s capacity to repay a loan. You should check with any prospective lender about their criteria before making a personal loan application.

What is a personal loan?

A personal loan sits somewhere between a home loan and a credit card loan. Unlike with a credit card, you need to sign a formal contract to access a personal loan. However, the process is easier and faster than taking out a mortgage.

Loan sizes typically range from several hundred dollars to tens of thousands of dollars, while loan terms usually run from one to five years. Personal loans are generally used to consolidate debts, pay emergency bills or fund one-off expenses like holidays.

Where can I get a personal loan?

The Australian personal loans market contains dozens of lenders offering several hundred different products. Personal loans are available through a range of institutions, including:

There are three main ways to access personal loans. You can go through a comparison website, such as RateCity. You can use a finance broker. Or you can directly contact the lender.

What are the pros and cons of personal loans?

The advantages of personal loans are that they’re easier to obtain than mortgages and usually have lower interest rates than credit cards.

One disadvantage with personal loans is that you have to go through a formal application process, unlike when you borrow money on your credit card. Another disadvantage is that you’ll be charged a higher interest rate than if you borrowed the money as part of a mortgage.

How long do personal loans take?

Depending on the lender, some personal loan applications can be approved in as little as one hour, or you may need to wait until the next business day. If approved, you may receive your money on the same day, the next business day, or within the week.

Can I get a $1,500 payday loan with bad credit?

Yes, it may be possible to get a $1,500 payday loan with bad credit. Some payday lenders give loans to people with bad credit histories if they believe the borrower has the capacity to repay the loan.

Under Australia’s responsible lending rules, lenders aren’t allowed to approve $1,500 payday loans if they don’t believe the borrower can make the repayments.

Can I get a fast loan with bad credit?

Some lenders offer fast loans to borrowers with bad credit. Providers of small payday loans of up to $2000 or medium amount loans of up to $5000 may have no credit checks, though these lenders will usually want to confirm you can afford its loans on your income.

How can I get a $3000 loan approved?

Responsible lenders don’t have guaranteed approval for personal loans and medium amount loans, as the lender will want to check that you can afford the loan repayments on your current income without ending up in financial hardship.

Having a good credit score can increase the likelihood of your personal loan application being approved. Bad credit borrowers who opt for a medium amount loan with no credit checks may need to prove they can afford the repayments on their current income. Centrelink payments may not count, so you should check with the lender prior to making an application.

Does refinancing a personal loan hurt your credit score?

Personal loan refinancing means taking out a new loan with more desirable terms in order to access a more competitive interest rate, longer loan term, better features, or even to consolidate debts.

In some situations, refinancing a personal loan can improve your credit score, while in others, it may have a negative impact. If you refinance multiple loans by consolidating these into one loan, it could improve your credit score as you’ll have only one outstanding debt liability. Your credit may also improve if you consistently pay the instalments on time.

However, applying to refinance with multiple lenders could negatively affect your credit if your applications are rejected. Also, if you delay or default the repayment, your credit score reduces.

Can I include my spouse’s income on a personal loan?

If you apply for a joint personal loan with your spouse, you can include their income on the application. If approved, they then become jointly liable for the loan.

Both you and your spouse need to meet the eligibility criteria, such as income, age, and residency requirements, as stipulated by the lender. A joint loan could increase your chance of approval for a higher amount, as both borrowers’ incomes are assessed when determining borrowing capacity. 

What are the Westpac personal loan eligibility criteria?

The process to apply for a personal loan from Westpac is simple and can be done online. To be eligible for a Westpac Bank personal loan, you must meet the eligibility criteria. These include:

  • You should be over 18 years old
  • You must be a permanent resident or hold a valid visa with confirmed employment in Australia
  • You should earn a regular and permanent income of at least $35,000 before taxes

If you feel you meet these eligibility criteria, you can apply for a personal loan with Westpac. With your application form, you’ll also have to submit the following documents:

  • Personal details including name, contact information, and residential address 
  • Proof of identity such as drivers licence or passport details
  • If you’re self-employed, you’ll need a list of assets, savings, investments, and liabilities as well as your most recent tax return information
  • If you’re an employee you’ll need to submit information related to your employment and finances like bank statements and payslips

Westpac Australia personal loans are available for amounts from $4,000 up to $50,000 and loan terms of up to seven years.

What is a credit rating/score?

Your credit rating or credit score is a number that summarises how credit-worthy you are based on your credit history.

The lower your score, the more likely you are to be denied a loan or forced to pay a higher interest rate.

What do credit scores have to do with personal loan interest rates?

There is a strong link between credit scores and personal loan interest rates because many lenders use credit scores to help decide what interest rates to offer to potential borrowers.

If you have a higher credit score, lenders will probably classify you as a lower-risk borrower. That means they’ll be keen to win your business, so they may offer you a lower interest rate if you apply for a personal loan.

If you have a lower credit score, lenders will probably classify you as a higher-risk borrower. That means they might be concerned about you defaulting on the loan and costing them money. As a result, they might protect themselves by charging you a higher interest rate.

Do student personal loans require security?

While some personal loans can be secured by the value of an asset, such as a car or equity in a property, student personal loans are often unsecured, which typically have higher interest rates.

Some lenders also offer guarantor personal loans to students. These loans have lower interest rates, as a guarantor (usually a relative of the borrower with good credit) will fully or partially guarantee the loan, taking on the financial responsibility if the borrower defaults.

Can I apply for a quick loan online?

While some lenders will require you to provide paperwork in person, many lenders will allow you to make an application for quick personal loan online. You’ll still need to provide information on your identity, income, and loan purpose in most cases.

Can I get a fast loan if I’m unemployed or on Centrelink?

Even if a lender has no credit checks, they will usually still need to confirm you can afford to repay a fast loan on your income before they’ll approve your application.

If 50% or more of your income comes from Centrelink payments, you may find it more difficult to have a fast loan application approved. Consider checking with the lender before applying to confirm if they lend to people on Centrelink.

Can I get a $4000 personal loan if I’m unemployed or on Centrelink?

Before most providers of personal loans or medium amount loans will approve an application, they’ll want to know you can afford the loan’s repayments on your current income without ending up in financial stress. Several lenders don’t count Centrelink benefits when assessing a borrower’s income for this purpose, so these borrowers may find it more difficult to be approved for a loan.

If you’re unemployed, self-employed, or if more than 50% of your income come from Centrelink, consider contacting a potential lender before applying to find out whether they accept borrowers on Centrelink.

How long does it take to get a student personal loan?

Completing an online personal loan application can often take anywhere from 10 minutes to 1 hour. Depending on your lender, processing your personal loan application may take anywhere between 1 and 24 hours. If your personal loan application is approved, you may receive the money in your bank account the following business day, or, in some cases, the same day.

Can I repay a $3000 personal loan early?

If you receive a financial windfall (e.g. tax refund, inheritance, bonus), using some of this money to make extra repayments onto your personal loan or medium amount loan could help reduce the total interest you’re charged on your loan, or help clear your debt ahead of schedule.

Check your loan’s terms and conditions before paying extra onto your loan, as some lenders charge fees for making extra repayments, or early exit fees for clearing your debt ahead of the agreed term.