Finder is committed to editorial independence. While we receive compensation when you click links to partners, they do not influence our content.

6 loans for a credit score of 500

Need financing but have a credit score of 500? These are the loan options you should consider.

If you’ve got a low credit score of 500, getting a loan from a traditional lender is going to be extremely difficult. But the good news is that there are loans available for people with credit scores of 500. Keep reading to find out what they are and how to find a loan that’s right for you.

Can you get a loan with a credit score of 500?

Yes. Even if your credit score is far from perfect, there are loans for people with a credit score of 500. These loans are typically available from alternative lenders that specialize in loans for bad credit borrowers. However, watch out for steep interest rates.

The most important factor to help you qualify for a loan if you have a credit score of 500 is having a steady income. Rather than focusing on your credit score, these lenders will assess your ability to pay back the amount you want to borrow. So if you’re in steady employment and you have an acceptable debt-to-income ratio, your chances of approval will increase.

1. Installment loans

Installment loans tend to have more lenient eligibility criteria than other personal loans, and you can pay back the money you borrow over terms ranging from 3 to 60 months. However, you’ll need to be prepared to accept higher interest rates than you would get on a conventional personal loan.

Features of installment loans for credit scores of 500

  • Loan amounts: Typically up to $5,000
  • Loan terms: 3–60 months
  • Interest rates: 18% – 46.96%
  • Chances of approval: Medium
  • What to watch out for: High interest rates will mean you need to repay much more than you borrow, while origination, prepayment, late payment and NSF fees may apply. You’ll also need to ensure that you’re dealing with a reputable lender.

Compare installment loans for credit scores of 500

Name Product Interest Rate Loan Amount Loan Term Requirements
Loans Canada Installment Loan
8.00% - 46.96%
$500 - $50,000
4 - 60 months
Requirements: min. credit score 300
Spring Financial Installment Loan
17.99% - 46.96%
$500 - $35,000
9 - 48 months
Requirements: min. income $1,800/month, 3+ months employed, min. credit score 500
LoanConnect Installment Loan
$500 - $2,500
3 - 6 months
Requirements: min. credit score 300
Mogo Installment Loan
9.90% - 46.96%
$200 - $35,000
6 - 60 months
Requirements: min. income $13,000/year, min. credit score 500
100-day money-back guarantee. If you're not happy with your loan, pay back the principal and get your 100 days of paid interest and fees back.

Compare up to 4 providers

Best installment loans in Canada

2. Payday loans

A payday loan offers fast access to financing – you can apply for a loan, get approved and access your funds all in the same day. You then have a very short time to pay back what you borrow, with a maximum loan term of 62 days. High interest rates also apply, so it’s worth considering payday loan alternatives first.

Features of payday loans for credit scores of 500

  • Loan amounts: $100 – $1,500
  • Loan terms: 1 – 62 days
  • Interest rates: $14 to $25 for every $100 borrowed
  • Chances of approval: High
  • What to watch out for: It’s common for payday loans to have APRs of over 400%, so this type of loan is an extremely expensive way to borrow money. Short loan terms make it easy to fall into a cycle of debt, while it’s also essential to keep an eye out for scams and make sure you’re dealing with a legitimate lender.

⚠️ Warning: Be cautious with payday loans
Payday loans are expensive. If you're experiencing financial hardship call Credit Counselling Canada for free financial counselling (Monday-Friday 8:00am-5:00pm at +1 866-398-5999). Consider payday loan alternatives:
  • Visit A free and confidential service that connects you to organizations that can help with finances, food, housing and more.
  • Debt relief companies. There are services to help you reduce your debt payments.
  • Payment extensions. Talk with bill providers about longer payment plans or due-date extensions.
  • Side jobs. Sell unwanted items online, sign up for food delivery and more.

Compare payday loans for credit scores of 500

1 - 2 of 2
Name Product Loan Amount Loan Term Interest Rate Turnaround Time Serviced Provinces Offer Table description
Cash Money Payday Loan
$100 - $1,500
5 - 40 days
Varies by province
As little as 15 minutes with INTERAC e-Transfer
Apply for your first $300 payday loan at a $20 cost (excludes SK applicants).
Instant decision and e-Transfer funding. Income of at least $1,000/month required.
iCASH Payday Loan
$100 - $1,500
7 - 62 days
Varies by province
As little as 2 minutes with INTERAC e-Transfer
Get up to 20% in cash back once your payday loan is fully repaid. Conditions apply.
24/7 instant approval and e-Transfer funding. Income of at least $800/month required.

Compare up to 4 providers

Maximum borrowing costs of payday loans per province
Always refer to your contract for exact repayment amounts and costs as they may vary from our results.
Province Maximum allowable cost of borrowing
Alberta, British Columbia, New Brunswick, Ontario & PEI $15 per $100 borrowed
Manitoba, Saskatchewan & Nova Scotia $17 per $100 borrowed
Newfoundland and Labrador $14 per $100 borrowed
Northwest Territories, Nunavut & the Yukon Up to $60 per $100 borrowed
Quebec Limit of 35% annual interest rate (AIR)

3. Car title loans

Car title loans are secured to the title of your vehicle. They allow you to borrow up to 50% of the value of your car and you can also take advantage of fast access to funds. And because you offer your car title as security, you can access higher loan amounts even if you have bad credit.

Most car title lenders require you to take your vehicle in for an inspection before approving your loan, but some offer 100% online approval.

Features of car title loans for credit scores of 500

  • Loan amounts: $1,000 – $50,000
  • Loan terms: 3 - 60 months
  • Interest rates: 9% – 49%
  • Chances of approval: High
  • What to watch out for: Read the fine print to find out about any fees and charges that apply to your loan, such as vehicle evaluation, title search and admin fees. Combined with the interest rate, this can result in a high APR. It’s also important to remember that the lender could repossess your car if you can’t repay the loan.

Get a car title loan with a credit score of 500

1 - 2 of 2
Name Product Loan Interest Rate Max. Loan Amount Loan Term Requirements
Loans Canada Vehicle Title Loan
Loans Canada Vehicle Title Loan
5.4% - 29.99%
4 - 96 months
Requirements: min. income $1,800/month, 3+ months employed, min. credit score 300
A broker with the largest lender network in Canada. Fill out one application and get matched for free with lenders. Bad credit, CERB and EI borrowers are considered.
LoanConnect Vehicle Title Loan
3 - 120 months
Requirements: min. credit score 300
Fill out one application with this broker and get pre-approved by different lenders in 5 minutes.

Compare up to 4 providers

4. Pawn shop loans

A pawn shop loan provides fast access to funds when you offer an item as collateral, such as jewellery, electronics or a musical instrument. You can borrow amounts up to 60% of the item’s resale value and then pay back your short-term loan (plus interest) to have the item returned to you.

Features of pawn shop loans for credit scores of 500

  • Loan amounts: Approximately 25–60% of the item’s value
  • Loan terms: Typically 30–90 days
  • Interest rates: 10–200+%
  • Chances of approval: High
  • What to watch out for: High interest rates and short terms can make it difficult to pay back what you borrow. The pawn shop will sell your item and keep the profits if you can’t pay back the loan, while it’s also important to keep an eye out for any hidden fees, such as storage fees.

5. Pay advance

Pay advance apps in Canada are a relatively new way to access emergency cash. Pay advance services allow you to access a small portion of your next paycheque to help you get through until your next payday. There’s no credit check required and some providers don’t charge any interest. It’s possible to access money on the same day in some cases, often for a fee, but funding may take up to three business days in normal circumstances.

When it comes to paying back the loan, the pay advance service will typically automatically deduct the money from your bank account on your next payday.

Features of pay advance apps

  • Loan amounts: Varies depending on the service, but typically around $100
  • Loan terms: Repayment by your next payday
  • Interest rates: No interest, but you may pay a subscription fee or express fee
  • Chances of approval: Medium to low
  • What to watch out for: Check the fine print to find out what fees apply when you use the service, and also whether there are late payment fees. You’ll also need to budget carefully to make sure you can cover expenses once your repayment is deducted from your next pay.

6. Credit card cash advance

A credit card cash advance allows you to access money from your card balance. You can get the cash you need from your bank or an ATM, but you’ll pay interest on the money you use and cash advances aren’t eligible for interest-free days. Compare cards with low cash advance rates to find an affordable option.

Features of credit card cash advances

  • Loan amounts: Maximum daily limits are typically $500 or less
  • Loan terms: Open
  • Interest rates: Approximately 23% + fee
  • Chances of approval: Not applicable
  • What to watch out for: Daily, weekly and monthly cash advance limits commonly apply, so you may not be able to access the amount you need. Cash advances also attract high interest rates. Interest starts accruing straight away, and you’ll need to pay a cash advance fee.

How to increase your chances of loan approval with a credit score of 500

There are a few simple things you can do to improve your chances of getting approved for a loan with a credit score of 500.

  • Provide collateral. If you can provide collateral, such as your car, and apply for a secured loan, you’ll increase your chances of approval and also be able to access lower interest rates. Just remember that you run the risk of losing that asset if you fall behind on repayments.
  • Get a cosigner. Applying for a personal loan with a cosigner, provided your cosigner has strong credit, can greatly increase your loan approval chances and help you get a better rate. But if you can’t make repayments, the cosigner becomes liable for paying off the loan.
  • Avoid NSF transactions. Lenders will consider your income and existing debt to determine your ability to repay the loan. So if there are any NSF transactions on your account, this will make you look like a risky prospect to a lender. But if you don’t have any NSF transactions in the last 60–90 days, this will enhance your chances of loan approval.

How do I get an emergency loan with a credit score of 500?

All of the loan options listed above provide fast access to funds, but payday loans and credit card cash advances are the fastest.

If you’ve already got a credit card, it’s easy and convenient to get a cash advance from your card. Just make sure you’re aware of the interest rate and cash advance fee that will apply to your transaction before deciding if it’s the right option.

Payday loans allow you to get cash within an hour in some cases so you can take care of emergency expenses. But high APRs and short loan terms mean you should always consider a range of payday loan alternatives first.

Before you apply for a high-interest loan with a credit score of 500

Taking out a high-interest loan might seem like the best solution to your money troubles now, but it could have an even more detrimental impact on your finances in the long run. That’s why it’s a good idea to get in touch with a credit counselling agency before you take out a loan.

A credit counsellor can sit down with you to assess your finances and your level of debt. They can advise you on the best way to get out of debt and provide tips on how to manage your money wisely.

If you need help, visit to get connected to the right support in your province or territory. From financial assistance and education to free or low-cost legal services, it’s easy to find the support you need.

Frequently asked questions

More guides on Finder

Go to site