When weighing the pros and cons of getting a payday loan, many people consider the costs involved. The finance charges for a payday loan average $10 to $30 per $100 borrowed, so it's understandable some people hesitate to take one on. However, here are two times when it may actually be cheaper to take out a payday loan.

Your Bank Will Charge You More for Overdraft

If you spent more than your checking balance will cover, your bank is only too happy to cover the shortage…for a fee. Anytime you dip into your overdraft coverage, you risk being charged anywhere from $20 to $39 per transaction just for the privilege of stopping a bounced check.

While one overdraft fee may not seem that bad, you can quickly end up with hundreds of dollars of debt if you miscalculate and multiple items are paid through your overdraft protection. To add insult to injury, some banks also charge customers a penalty for each day their balances remain in the negative.

If you realize you made a mistake that will result in an overdrawn checking account, you should crunch the numbers and compare how much your bank will charge versus a payday lender. In many cases, it'll be much cheaper to take out a payday to cover the deficit than it is to go into overdraft.

Additionally, you won't risk your credit. If you get too many overdrafts or your balance remains negative too long, the bank will close your account and can report the activity. This can make it extremely difficult to open new accounts at other banks, so it's best to protect your financial future by using a payday loan to cover shortfalls.

You'll Drown in Late Fees

Almost every credit card, loan, utility, and similar accounts that require you to make payments every month will charge you a fee if you don't pay on time. Some accounts will even raise your interest rate if you're late too many times, resulting in more money out of your pocket.

One late fee with one account probably isn't a big deal, but if your cash flow doesn't cover all your bills and you're at risk of being late with multiple creditors, you should consider taking out a payday loan to ensure they're paid on time. You'll avoid late charges, and you won't have to worry about the creditor dragging your credit score down by marking your account as past due.

Contact a lender for more information on loans like no credit score payday loans.