We’ve all heard the negative allegations by critics regarding the payday loan industry. However, a closer look may reveal that not only are these charges not always justified, but there are truly times when “a payday loan is the best option.”

Critics often point to “excessive interest fees” payday loan or cash advance services charge their customers. What they fail to consider is that a payday loan, also known as a cash advance loan, saves the borrower with bad credit from undergoing embarrassing credit checks, only to find that they cannot obtain a loan by going through the traditional routes, but it also poses a much greater risk to the lender. This risk is made up for by charging higher interest rates and having shorter repayment schedules than the traditional loan institution.

Even with good credit there are times when a payday loan is the best option. When the borrower only needs to borrow $500 to $1000 they may easily obtain the money with a cash advance and avoid the lengthy applications, credit checks and waiting period for approval. A payday loan is a short-term solution and is ideal for those times when you have unexpected expenses or find yourself short of cash several days before payday. A payday loan can normally be deposited into your checking account the next day or possibly as soon as the same day you apply.

A payday advance is also a better option than paying late fees on bills and having late payments negatively affecting your credit report. They are a better option than bouncing checks and paying fees both at the bank and with the company to whom the check was written. They are a better option than pawning personal property or borrowing money from friends or family. When used responsibly, payday loans can provide valuable assistance to these short-term cash needs.