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When A Payday Loan Actually Makes Sense

by Alfred Parker

Short-term loans, commonly referred to as payday loans, provide consumers a convenient way to borrow cash quickly. Their high interest rates tend to make people dismiss them completely, but their flexibility does make them useful. Here are some situations when a payday loan's convenience can get you out of a jam:

When You're Facing Expensive Bank Fees

Surprisingly, there are times when taking out a payday loan will save you money! If you accidentally write a check or charge your debit card for more than you have in your account, you could face significant bank charges.

Overdraft protection fees typically range between $10 and $35 per transaction. If you use a card multiple times in a single day, you can easily rack up over $100 in fees. Taking out a short-term loan and covering the charges will help you avoid these fees altogether.

Similarly, bounced checks usually have fees around $30. Further, a bounced check can often force a payment to go late, racking up additional fees. Even worse, utility companies can report late payments to the credit bureau, dropping your credit score.

When You Need Money to Get to Work 

When you're strapped for cash, making sure you get to work should be your first priority. After all, the only way to keep paychecks coming in is to work for them.

Payday loans will help you out if an unexpected cost will force you to miss two or three days of work. Such events could include theft, car accidents, or as simple as a ride to work being unavailable. Such expenses could include:

  • Auto repairs.
  • Car rental for several days.
  • Gas money.

When You Have No Access to Emergency Funds

One of the reasons payday loans are so popular is because of how convenient they are. You can qualify for them 7 days a week. Some payday loan companies even operate 24 hours a day. 

This convenience is incredibly useful if you have an emergency, but no access to your money. If you have a checking account with an ATM this might not be likely, but many savings account do not offer the same convenience. If you are stuck during a long holiday weekend, or far away from your credit union, you could be completely without access to your funds.

In a perfect world, you would make more than enough money to stock enough aside for a rainy day. Since this isn't always possible, it's comforting to know there are options that offer financial relief when you need it the most. In the future, if you are facing exorbitant banking fees, unable to get to work, or stuck without access to your money, consider heading to a local payday loan company. They will be able to provide you money on the spot, giving you help when you need it the most!