Emergency Loans For a 500 Credit Score

A personal loan, payday loan, and secured loans are all options that can make it possible to get a loan even with a 500 credit score. In most cases, you will need a steady source of income and to prove your ability to repay your loan on time. While creditworthiness is a large factor in loan considerations, there are lenders that work with borrowers who have subprime scores such as a 500 credit score. Keep in mind that having a poor credit score will mean paying more when borrowing funds. 

Continue reading to learn more about getting a loan with a 500 credit score!

How Can I Get Loans with a 500 Credit Score?

A 500 credit score means that you have a score that falls into the very poor range, which can make borrowing funds more challenging and expensive when compared to borrowers who have good credit. 

To better understand a 500 credit score, it may be helpful to understand the different FICO credit score ranges. (FICO is the most commonly used credit scoring system). Here are the ranges for a FICO score:

300–579: Poor

580–669: Fair

670–739: Good

740–799: Very Good

800–850: Exceptional

As you can see, a 500 credit score falls into the poor category, the lowest tier. There can be a few different reasons that your score is this low. In most cases, it will likely be because of a combination of negative actions regarding your credit or it may be because you have just gotten started with your credit portfolio. 

Here is one example of the typical credit history you can expect for an individual with a 500 credit score; they will likely have several missed or late payments with their credit accounts, they likely don’t have a long credit history (and if they do they haven’t handled their accounts in a responsible manner), they also probably have accounts in collections or past bankruptcies. 

As we mentioned briefly above, having a poor credit score will make borrowing more challenging and more expensive, but you may be curious about exactly how that can happen. With lower credit scores, you’ll have to deal with:

• High Interest Rates — Bad credit borrowers will often get high APR loans, which increases the overall cost of borrowing funds. 
• Low Loan Amounts — Loan underwriters take into account risk assessment when considering loan amounts for potential borrowers. A lower credit score will mean a lower loan amount—which can feel limiting if you need to borrow more than just a few hundred dollars. 
• Strict Borrowing Terms — For borrowers who are high-risk, lenders have more strict rules for repayment and loan terms. Personalization can sometimes be crucial when having the borrowing experience, and the lower your score, the less you may have with the loan process. 
• A Harder Time Finding a Lender — While there are lenders that work with poor credit scores, the lower your score, the harder it may be for you to find a lender that will approve a loan for you. Not impossible to do, but more challenging when compared to applicants who have fair or good credit. 

All of these things are a part of the borrowing experience for bad credit individuals because of the risk that comes for lenders. And because creditworthiness is a major tool that these lenders use for assessing risk, the lower your score the greater the costs and challenges. Even with these costs and challenges, it’s not impossible. There are lenders and loan options out there, including CreditNinja’s personal loans which are options for bad credit borrowers, with personal loans up to $5,000. 

Common Types of Emergency Loans for 500 Credit Score

Here are some common types of loans you can look into with a 500 credit score:

Bad Credit Personal Loans

Bad credit personal loans work similarly to personal emergency loans (they are flexible in use and loan amounts, and are usually installment loans). However, instead of how standard personal loans are generally geared towards borrowers with fair or good credit, bad credit personal loan options are accessible for borrowers with lower scores. Typically, you will need to have a valid source of income and the ability to prove it. CreditNinja offers these kinds of loans and we recommend an installment loan, which is predictable and easy to fit into a budget when compared to revolving credit such as credit cards.

Payday Loans

A payday loan is a short-term loan that makes it possible for bad credit borrowers to get a few hundred dollars quickly. While they can be helpful during an emergency, they can quickly lead to a cycle of debt. This is because of their high cost and short repayment schedule. 

Typically, all payday lenders require for borrowers is to have a steady source of income and have the ability to repay their loan in about two weeks. 

Unfortunately, there are lots of payday lenders that are predatory because they know that their borrowers are desperate, and so make sure you do your research. Be cautious of lenders that offer “guaranteed or instant approval.” While CreditNinja doesn’t offer payday loans, we do offer an alternative through our personal loans, and even if you don’t go with us, we highly recommend that you seek out a personal loan over a payday loan!

Pawnshop Loans

Pawnshop loans are secured loans that use personal property as collateral. Items like jewelry, electronics, fine art, and instruments are a few examples of what many people use for these loan options. 

Loan amounts will be based on the asset’s value, and is usually a fraction of whatever that is. The lender holds onto the item until you pay the full loan amount (including interest), once you repay the loan, you will get your asset back. If you do not repay your loan on time the pawnshop can sell that item, and that is where the risk comes in. 

Pawnshop lenders may verify your income, but in most cases they are pretty flexible. Usually these bad credit loans are due in about 30 days after they are lent out, which may be a little difficult for some to manage, unlike options like CreditNinja’s installment loans, which offer a longer repayment period and don’t require collateral.

Auto Title Loans

Auto title loans are secured loans that use a vehicle as collateral. The loan amount and approval will be based largely on the value of the vehicle. When you take the auto title loan out, the lender adds a lien to the car’s title, which means that they will own the vehicle until the loan is repaid. 

Title loans come with extremely high interest rates and can be difficult to repay, not only that, they put your car at risk. And so, even though they may be a solution with bad credit, they probably aren’t your best choice for funding, because of their expensive cost and risk. CreditNinja does not offer title loans, but the unsecured loans we do offer work for bad credit borrowers, and there is no need to include your vehicle.

401(k) Loans

401k loans allow you to borrow from your retirement plan and because you are borrowing from yourself, it can definitely be more convenient, and a 401k loan will not affect your credit. However, at CreditNinja, we want you to know that there are some considerations that you should be mindful of before doing so. 

When you borrow from your 401k, your money will be taxed twice, you’ll be putting your future at risk, there may be early withdrawal penalties, and if you lose or leave your job, you may have to repay your loan immediately. 

While CreditNinja does not offer 401(k) loans, we do offer another installment loan product, our bad credit loan options can work without all that risk to your future savings.

Secured Loans

Secured loans are the opposite of what CreditNinja offers, which are unsecured loans. These loans for bad credit are any option that are secured with collateral. 

Because of this security, a 500 credit score may be okay for approval. While that flexibility can be convenient, there is the risk of losing the asset if you cannot pay your loan on time. An unsecured loan doesn’t pose that risk, and contrary to popular belief, these personal loans are available for borrowers with poor credit scores with the right lenders, lenders like CreditNinja, where a low credit score is okay. 

Benefits of Choosing CreditNinja for Your 500 Credit Score Personal Loan

You’ll find an array of benefits if you decide to work with CreditNinja for a personal loan with your 500 credit score. CreditNinja provides a fast and flexible loan option for borrowers, even if they don’t have the best credit score, which can be hard to find! Unlike cash advance or payday loans, you’ll have a good amount of time to repay your loan with steady monthly payments, while still getting benefits like speed, convenience, and flexibility even with a poor credit score. And so, if you have goals of keeping your finances on track while also taking care of unexpected expenses, CreditNinja is here to help!

Is Taking Out a Loan with Poor Credit a Good Idea?

Lending becomes a little more complicated when you have poor credit, and you may be asking yourself whether taking out a loan is a good idea when you have poor credit. And CreditNinja wants you to know that the answer to that question really depends on the loan you are taking out and your current financial situation. 

Where things can get a bit tricky with poor credit is when adding more debt to an already existing rocky financial situation. However, in some cases, a loan may be exactly what a person needs to find stability with their money. 

No matter what you decide, it’s important to know that borrowers have rights with lending and credit reporting. The Consumer Financial Protection Bureau (CFPB) has laws in place to protect all borrowers regardless of their scores from unfair and predatory lending practices. The Fair Credit Reporting Act provides credit reporting guidelines for lenders, banks, and other financial institutions. Along with lender laws/guidelines, the fair credit reporting act provides borrower rights to access and dispute credit history errors or inconsistencies.

How Do CreditNinja Loans Work?

Thinking about CreditNinja for your bad credit loan option?  With a CreditNinja loan, once approved, you’ll get a lump sum, which you will repay in steady monthly payments, until the loan is repaid in full. CreditNinja bad credit loans are simple and fast, you can complete the entire process online. Once you sign for your loan, you may be able to get the funds on the same day!* 

The approval process is also fast and flexible. Instead of completely focusing on credit, we’ll pay closer attention to your income and ability to repay the loan, which thanks to bank verification can be done quickly. Emergency loan amounts go up to $5,000, depending largely on those factors. 

While there is a credit check, bad credit is okay, in fact our emergency loans are designed with low credit borrowers in mind. CreditNinja loans are safer than most no credit check loans because we offer more time for repayment and have no hidden or unexpected fees attached.

What CreditNinja Loan Customers are Saying

Here are some experiences from our past customers with our personal loans:

“I was amazed at how fast CreditNinja works! Thank you for helping me get this loan approved! I will definitely recommend this site to any of my friends should they need a personal loan.” – Eva Barnum

“Ease of use, especially after you have become a customer. I did everything on my phone. Signing in was a breeze, verifying answers to the questions was also straightforward. If everything goes smoothly, it takes less than 10 minutes from application to approval.” – Tom A.

“The process was quick and easy. Also the payment was low and easy to pay, and they gave you all the information up front, no hidden details.” – Rhonda Potter

Loans for 500 Credit Score FAQs

Here are some answers to frequently asked questions about bad credit loans for a 500 credit score. 

Still Have Questions? Contact CreditNinja Today

People use a personal loan when they need funds for all kinds of expected and unexpected expenses, things like paying rent, debt consolidation, bills, car repair, home repairs and other emergency situations. If you need money quickly, CreditNinja recommends that you explore your options carefully and stay informed—and yes, even with a 500 credit score you have options! 

Curious about our personal loan structure, loan approval, repayment, or anything else? Get in touch today, give us a call at 855-NINJA-01 (855-646-5201).