A $500 loan might seem a bit small, but if all you need is a little boost in between paychecks, then such a loan would be ideal. These small loans are commonly called short-term payday loans or cash advances, and generally have short maturation periods. As a temporary fix, it presents several advantages, the biggest of which are the speed and ease of application. However, as with all financial transactions, you need to be very careful. Take the time to understand your options and to review all the terms of your loan before signing.
Another advantage of a 500 loan no credit check is that a low credit rating will not prevent you from applying for one. A traditional lending firm or a bank would require a credit check before you are even considered for a loan, so it would not be a viable option for many. Payday loans have a considerable edge over these establishments in that they require only three basic things – a bank account, proof of employment, and your signature. Your past couple of pay slips would suffice as proof of employment.
No credit check loans, however, come with their own share of disadvantages. The first one is the large interest rate that usually comes with such loans. Some people choose to consider this a service charge for the speed and convenience of applying for a cash advance, and in that light, it is worth every cent. However, because of this added interest, resorting to payday loans on a regular basis will do you more harm than good financially. It is therefore advisable to apply for a payday loan prudently and infrequently, and only when all other options are out.
Finally, keep in mind that a $500 loan must be paid back promptly. If you are uncertain of your ability to pay the loan within one to two weeks, it may be best to seek other alternatives, as lending establishments charge fines for delayed payments.