£500 loans often come in handy to satiate one’s short-term needs. They are easy to be paid back and can finance one’s needs to a reasonable extent. Loans carry a specific interest rate, and it is always advisable that the loans must be paid back on time to avoid the steepness of debt. Late payment of loans can also impact your credit score negatively, which may have implications further if you need the loan next time. Thus, a loanee should borrow the amount which comes within his/her ability to return without difficulties. Furthermore, one can apply directly to the lender or go through the mediator or broker to get the best terms as there are many lenders in the market who provide loans on different terms.
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What you can buy with a £500 loan?
There are innumerable things one can buy with this amount of loan; however, when it comes to specifics, it can be used for any emergency such as if your car or boiler needs to get fixed. Not only the repair, one can even buy a great deal on second-hand cars, low-cost convertibles, hatchbacks with many more features. In terms of technology, it is unimaginable in this world now to survive without a laptop. Though you may not get the world’s best configuration or specs in this budget, a pretty decent laptop is not too far from your reach if you have a budget of £500 loan. Not just the laptop, you can even fulfill the fantasy to fly the drone for commercial or recreational purposes within this budget. You can have your very own Unmanned Aerial Vehicle, keeping in mind the regulations and privacy concerns. In addition to this, any small expenses such as buying a ticket for a flight, unforeseen bills, funeral arrangements, fees payment, phones, etc. can be made with this amount of money
Criteria to get a £500 loan
It is easy to get a £500 loan if you specifically do not have a bad credit history. However, many lenders like Wizzcash provide the loan even to a person with bad credit history, though the factors for the selection process increase.
Loan lenders often provide an online facility for application, which you can use to apply. Being eligible for the one is a prerequisite, these are the following criteria:
One must have attained the age of 18 or more at the time of application for the loan.
One should have an account in any of the banks offering such loans in the UK: This has become easy as not many documents are required to open an account, just the identity proof and residence proof.
One should be a resident of the UK and have an address.
Proof of a regular income: When it comes to this criterion, it becomes a crucial determining factor for the grant of a loan as this shows the borrower’s ability to pay back the loan. Generally, banks set a specific limit on the regular income you must have to apply for a loan. For example, Wizzcash requires you to have £750 as your monthly salary after deduction of taxes to apply for a loan.
For a hassle-free approval, it is believed that one should have a good credit history, capability to pay which means affordability and regular employment.This makes the lender sure about your credibility to pay back.
Knowing the types of Loan and your lender
Types of Loan
You should be aware of the kinds of £500 loans so that you can apply for the appropriate one according to your situation and requirements. There are various types of £500 loans.
Payday: These loans, also known as cash advance loans are short term borrowings, and may come with high-interest. They are for people with regular income and considered as a part of loanees next paycheck, and that’s why they are generally repaid within a month.
Guarantor Loans: These loans are for people without any regular income. They can have a guarantor who can guarantee repayment on their behalf in case the borrower is unable to pay or defaults. They are the best options if you can’t go for payday loans.
Personal Loans: They comes as advantageous when you want the flexibility to repay your loan, unlike payday loan. For instance, you can choose the plan ranging from 3 months to around 2 years. However, they come below the payday loans in preference as you tend to pay more. Payday loans cost less as they are regulated by the Financial Conduct Authority (FCA); other short duration loans are subjected to lenders’ terms.
Credit Card: Such loans turn out to be very handy when it comes to handling emergencies. For this, you must have a credit card. They are mostly paid back within a month; however, the debt can pile up fast if you miss your deadline.
Apart from these sorts, line of credit, high street loans also can be seen as options. However, they generally are seen as the costly options as interest on the amount is charged higher as compared to other types.
Know your lender
Additionally, it is also essential to know your lender, whether it is professionally equipped to be a lender or not. FCA regulates the loan providers, but not all and those who are regulated function on FCA terms. Apart from this, knowing the lender’s approval rate, comparison of interest rates, terms and conditions and other imperatives help in prudent decision making.
Lenders Offering £500 Loans
There are many lenders out there who are providing loans on different terms. For instance, New Horizons, a loan introducer based in London, Swift Money Limited, a brokering services provider in Lancashire, Likely Loans in Nottingham, Elevate, Wizzcash and many more. It is better to analyze the options and optimize the selection.
Therefore, £500 loans can be beneficial to supplant the incomes to fulfill basic needs or any untoward emergency; it is always wise to not let the debt pile up.