Everyone takes out a payday loan for different reasons. And there are many reasons to get a payday loan - very good reasons that make financial sense. But, there are also not-so-savvy ways to use these kinds of cash advances, as well. We’ll take a look at both, sharing positive ways to use a payday loan and times when you may want to skip the application.

Using Your Payday Loan for Good

By definition, payday loans are short-term loans that are paid back within your next paycheck or next couple paychecks. When you understand the repayment terms, there are quite a few situations where it might make sense to use this type of loan.

Paying Your Utilities
Depending on the time of year, certain kinds of utility bills can be unpredictable. Whether that’s because of a heat wave or a brutal ice storm, those few days of running the heating and cooling systems on high can have a big impact on your monthly bill. Since payday loans can be as as small as $50, it makes sense to take out the loan to avoid a bank overdraft fee or late fees for not paying on time. And you don’t even have to borrow the entire bill’s value. For example, say you’ve budgeted for $130 electric bill but one month you’re slapped with a $225 bill. You can simply take out a payday loan for the $95 gap.

Covering Medical Expenses
Health insurance may offer you some coverage when you have to make a scheduled trip to the doctor. But sudden illnesses or injuries can result in large bills - and the impacts of not being able to pay it can include a hit to your credit score. The same can be said about dental issues, and when tooth pain sneaks up on you, so, too, does the bill. For example, even with dental insurance, the average root canal can cost a painful $200 - $500. Now that can really set your teeth to grinding - unless you use a payday loan to get some relief.

Repairing Your Vehicle
According to AAA, the average cost to repair a car is between $500 and $600. That means one day you could be riding along and suddenly you’re out a timing belt and out of your mind with how to pay it. Depending on where you live in the country, though, you can borrow as much as $1,000 from LendNation to help cover repair costs and get you back to smooth riding.

Avoiding Bounced Checks
While the national average of a bounced check costs around $30, depending on which city you live in, that cost can go as high as $33. Not only is it embarrassing for your checks to bounce, but it’s costly in more than just fees. If you use that check to pay for a product that reports to the credit bureaus, such as, say, your mortgage payment, then you could see a late payment notice show up on your credit report. You can avoid it altogether by taking out a payday loan to cover costs you know you’re going to struggle to meet.

You Need to Bridge the Gap Between Paydays
Sometimes it can be difficult to have enough money to make it to the next paycheck. We often can’t choose when a lot of our bills come out of our bank accounts. Maybe you know that on one paycheck you won’t make it but on the next you’ll have a surplus. A payday loan helps you through that tough week until the extra makes its way to your bank account.

Using Your Payday Loan for Bad

Any tool can be used for the wrong reasons. Check out what situations definitely don’t call for a payday loan.

Paying off Other Loans
High-interest loans are an unfortunate fact of life for a lot of us. And while it might be tempting to pay it off using another loan like a payday loan, you probably shouldn’t. Here’s why: You’re expected to pay off your cash advance within a couple weeks. In that time, you would not accrue enough interest on the other loan for it to offset the fees of taking out a payday loan. Focus on paying down your current loan, instead.

Getting a Payday Loan Because Your Credit Card is Maxed Out
Having a maxed out credit card is almost a sure sign of one thing: You’re overspending. Taking out another loan such as a cash advance will only sink you further into debt. And if you can’t pay off a payday loan in the time allotted, it can quickly become expensive. Plus, if you are unable to pay down the maxed out credit card, you will most likely struggle to pay back the payday loan.

Making Large, Unnecessary Purchases
When you know a big purchase is coming up, like buying gifts for the holidays, taking out a payday loan to cover the cost is not recommended. Instead, saving up for the large purchase is the ticket. Try to save a little bit each month to help cover the cost.


LendNation customers aren’t just another number. They’re our neighbors, our family members, our friends. We want to help you get through unforeseen financial hardship, not create it. Payday loans are a great product for particular situations, and can even end up saving you money in certain fees related to not having enough funds. When used correctly, cash advances can help you get to the other side of money troubles. If that sounds like the situation you’re in, don’t wait! Apply today to see how we can help use a cash advance for good!