$500 personal loans from 90+ brands
ING Personal Loan
All rates shown are per annum. ING Bank (Australia) Limited ABN 24 000 893 292, AFSL and Australian Credit Licence 229823.
Fixed Rate Personal Loan
Find and compare $500 personal loans
Oops, no result found.
The latest in personal loans news
The lenders providing personal loan repayment relief during the coronavirus
More than 20 personal loan lenders are providing some much-needed breathing room for borrowers during COVID-19.
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?
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.
A property and personal finance writer, Nick Bendel covers property, loans, credit cards, superannuation, and other bank products. Nick has previously written for The Adviser, Mortgage Business, Lifehacker, Business Insider, Yahoo Finance, and InvestorDaily, and loves getting elbow-deep in the latest ABS, APRA and RBA data.
In the best-case scenario, an application for a bad credit personal loan can be made within minutes and then be approved within 24 hours.
The worse your credit history, the harder you will find it to consolidate your debts, because lenders will be less willing to lend you money and will charge you higher interest rates.
However, people with bad credit histories can make debt consolidation work by following this three-step process. First, find a lender willing to give you a bad credit personal loan – this process will be simplified if you go through a mortgage broker or use a comparison website like RateCity. Second, make sure the interest repayments on your new loan are less than the repayments on the loans being replaced. Third, instead of spending those savings, use them to repay the new loan.
Some lenders are able to approve applications over the internet and within minutes. However, there is a catch. People who take out easy/instant loans generally pay higher interest rates and are restricted to lower amounts than people who follow a traditional borrowing process.
A bad credit personal loan is ‘secured’ when the borrower offers up an asset (such as a car or jewellery) as collateral or security. The lender can then seize the asset if the borrower fails to repay the loan.
Few, if any, lenders would be willing to give guaranteed approval for a bad credit personal loan. Borrowers with bad credit histories can have more complicated financial circumstances than other borrowers, so lenders will want time to study your application.
It’s all about risk. When someone applies for a personal loan, the lender evaluates how likely that borrower would be to repay the money. Lenders are more willing to give personal loans to borrowers with good credit than bad credit, because there’s a higher likelihood that the personal loan will be repaid.
So a borrower with good credit is more likely to have a loan approved and to get that approval faster, while a borrower with bad credit is less likely to have a loan approved and to get that approval slower.
Credit ratings/scores are calculated by credit reporting bodies such as Equifax, Dun & Bradstreet, Experian and the Tasmanian Collection Service. These are separate organisations, so they use different systems.
Equifax gives scores between 0 and 1,200:
- 833 to 1,200 = Excellent
- 726 to 823 = Very good
- 622 to 725 = Good
- 510 to 621 = Average
- 509 or less = Below average
Dun & Bradstreet (through the Credit Simple service) gives scores between 0 and 1,000:
- 800 to 1,000 = High end
- 700 to 799 = Great
- 500 to 699 = Average
- 300 to 499 = Room to improve
- 299 or less = Low
Experian gives scores between 0 and 999:
- 961 to 999 = Excellent
- 881 to 960 = Good
- 721 to 880 = Fair
- 561 to 720 = Poor
- 0 to 560 = Very poor
The Tasmanian Collection Service doesn’t give scores. Instead, it prepares credit reports for credit providers and then lets those providers make their own assessment.
In some instances, bad credit personal loans can help people with bad credit history to consolidate their debts in such a way that it makes it easier for them to repay those debts. This is because the borrower might be able to consolidate several debts with higher interest rates (such as credit card loans) into one single debt with a lower interest rate.
However, this strategy can backfire if the borrower spends the extra money instead of using it to repay the new loan. Another disadvantage of bad credit personal loans is that they have higher interest rates than regular personal loans.
It’s unusual for a lender to make a personal loan above $100,000, although there is no formal limit. As with all lending products, each lender sets its own policies, while each borrower is assessed on a case-by-case basis.
The Australian personal loans market contains dozens of lenders offering several hundred different products. Personal loans are available through a range of institutions, including:
- The big four banks (ANZ, Commonwealth Bank, NAB and Westpac)
- Smaller banks (such as Bank of Queensland, Bendigo Bank and MyState)
- Mutual banks (such as Heritage Bank, Greater Bank and Newcastle Permanent)
- Credit unions (such as People’s Choice Credit Union, BCU and Community First Credit Union)
- Non-bank lenders (such as Pepper Money, Liberty and RACV)
- Peer-to-peer marketplaces (such as Harmoney, SocietyOne and RateSetter)
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.
Borrowers who take out bad credit personal loans don’t just pay higher interest rates than on regular personal loans – they also get loaned less money. Each lender has its own policies, but you’ll find it hard to get approved for a bad credit personal loan above $50,000.