|By Ashley Russell on July 11, 2011
Payday loans are a way to get quick cash when you are in a crunch. Sometimes when you only need a small amount of cash, you can use payday loan to cover the difference without taking out a huge loan. A $500 payday loan is easy to come by as long as you meet the qualifications necessary for the banking institution.
The basic qualifications of a $500 payday loan are that you have a job and a checking account. Depending on the bank, they may also look to see how long your checking account has been open and how long you have been working at your current job.
Because every state has different laws, you may need to go about the process differently for your state. Some states require that you make at least 4 times the amount you want to borrow, so that you will be more apt to pay the loan back. Other states, such as California, restrict payday loans to a maximum of $250. Therefore, you will need to get two different payday loans to reach your desired amount.
Be cautious with payday loans. Since the money is easy to come by, it can also rack up interest fees if you default on your loan. Take these rates into consideration when you are getting your loan. And never take out more money than you can repay. Compare rates for many different places before you decide on which company to go with. Also, don’t get discouraged. If one company turns you down, look to other companies who may have more lenient policies.
Payday loans can help you when you get in a bind with cash. They can save you from missing a payment and paying a late fee. However, payday loans should not be abused, otherwise you could wind up paying more in interest rates than you would have originally paid for a late fee.