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It’s typically used for emergency expenses or to …You compare the costs of borrowing that money: The bank or credit union has a loan with an APR of 7.5%. You will pay $21 in interest to borrow $500; A credit card has an APR of 20%. You will pay $56 in interest to borrow $500; A car title loan has an APR of 300%. You will pay $1,111 in interest to borrow $500Advanced Math. Advanced Math questions and answers. You borrow $500 from a family member and agree to pay it back in 6 months. Because you are part of the family, you are only being charged simple interest at a rate of 0.5% per month. Personal Lines of Credit Between $500 - $5,000 Get Started A Line of Credit is an open-end credit product that allows you to make draws, repay and redraw as needed, while a traditional installment loan is a lump sum of money that is usually repaid over a fixed loan term. 1. Choose the right friend. 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