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Best £500 Loans for Bad Credit

If you only need to borrow £500 and you have a poor credit score, then these providers can help.

Compare the Best £500 Loans with Online Applications

Here are the cheapest deals you can get with a bad credit rating for borrowing up to £500.

Piggy Bank has a very good APR% representative of 1270% compared to other providers.

It also has great online customer reviews from 3rd parties.

Although you may have a bad opinion of Wonga from the bad press, it may have made them clean up their act. Their APR% is around 1286% representative, and they have good online reviews.

Sunny was our winner last year, and still represents a good deal at 1291% APR representative.

They also have a fantastic online reputation, with no late fees.

Wizzcash represent the best APR% representative at the rates we checked around 1265%. However their online reputation on 3rd party sites is non-existent (minimum reviews) and so it’s difficult to judge them properly.

About £500 Loans for Bad Credit Ratings

£500 is not a lot of money, but it can sometimes make the difference between fulfilling financial needs on time, and hitting financial trouble and consequences. It might even be a simple matter of being able to get a deal that won’t be around later, or covering an emergency repair bill while you wait for payday.

Because the reasons for needing a loan like this are usually time-sensitive, the application process is designed to be as simple and quick as possible. The process is incredibly easy, and the money is transferred to the borrower very shortly after the application is approved.

£500 Loans Online Applications Information

Many lenders offer loans of this size entirely online. You won’t need to go into a bank or office, and you won’t need to sit and fill out a stack of forms. The funds are deposited automatically to your account, too, so there is no waiting around for a cheque, then waiting for it to clear. This can be the fastest, easiest way to get a loan when you need one.

There is no guarantee that you will be accepted for a loan, but many lenders are willing to give someone a chance, even if there is some damage to that person’s credit rating. In fact, there are loan products designed specifically to help people with poor credit secure a loan and begin to rebuild the credit score.

Get the best loan possible for £500

There are a few simple things to keep in mind in order to get the best deal on a £500 loan. If you stick to these recommendations, you will get the best value available to you in your current situation.

First of all, determine exactly how much money you need. Many loans are a little over or under the £500 mark, so be precise. The lower the amount, the better. You will pay it off sooner, and therefore pay less in interest charges. You are also more likely to be approved.

Decide how long you will need to pay off the loan, and don’t forget to factor in the interest charges. If you aren’t sure how much that will be, multiply the amount you want to borrow by 18%. That will give you the amount of interest you would pay for a loan at 18% APR that you took a year to repay.

On a loan of £500 exactly, the interest at 18% would be £90. Add that amount to your total, and divide the total by 12. The result is your monthly payments. For a £500 loan at 18% APR, the payment would be £49.16 per month, for twelve months. The loan will cost you £590, plus any fees.

If you can afford more per month, do so. It will reduce the time it takes to repay the loan, and reduce interest charges.

For example, consider the same loan as above, but paid out over 6 months. The interest would only be £45, but it would be spread over six months instead of twelve. The monthly payment would be £90.83, but the overall loan would only cost you £545 plus fees, rather than £590 plus fees. In short, the quicker you can pay it off, the cheaper it is.

Finally, don’t forget to check for extra administration fees, or early repayment fees. Factor these into your calculations.

Once you know all of this, shop around to find the best deal.

Is it a lot more difficult to get a loan with a bad credit rating?

Yes, but it’s not impossible. Loans will be for lower amounts, and will have higher fees and interest rates. In some cases, you may be refused a loan.

Are these payday lenders regulated?

Legally, they are supposed to be, but not all of them are. Be sure to check the FCA website before agreeing to a loan. In order to be protected from bad business practice or fraud, use a regulated lender, even if the other option looks good on paper.

How long before my payday loan application is approved?

The process depends on the lender, but can take as little as a few minutes, to as long as a couple of days if extensive checks and verifications need to be made. In most cases, expect an answer no sooner than the next working day.

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