A $ 500 payday loan is a short term and unsecured loan generally used to meet unexpected bills such as medical or auto repairs. Now because they are short term and unsecured the interest rate is much higher than normal loans from your bank and this reflects the risk to the lender. Usually no collateral is required so it’s easy to qualify.

There are advantages and disadvantages to payday loan.

The main advantage to this type of loan is almost anybody with a job can qualify, and as they are usually unsecured loans, no collateral is required. Some companies do not even check your credit. This is in stark contrast to the major banks which would require collateral and a good credit rating for a loan.

Another advantage payday loans have is speed. If you qualify you can literally have the $ 500 payday loan in hand in less than 24 hours. There is no other type of financial instruction, which can provide loans as quickly. This is very important when you have a financial crisis in your family, and you need the cash today. Payday can provide instant loans because they require a minimum of paperwork and no credit checks.

However, there is a downside to all this speed and convenience. You will pay a much higher rate of interest, and you could incur penalties if you fail to pay back the loan in the agreed timeframe. The APR on this type of finance can be over 100%.

In addition if you fail to pay back to loan, interest and penalties can turn what was a relatively minor sum of money into a huge debt in a relatively short period of time. You should only use pay day loans if have absolutely no other option, and you are sure you can repay the loan on time.

Before you proceed with a $ 500 payday loan application be sure you have looked at all the other option for getting the cash you need including borrowing from friends and family. If you have exhausted all these possibilities then you can get the 500 payday loan from one of the lenders listed below.

Click Here To Apply For An Easy $ 500 Payday Loan