George asked us the following question:
“I want to take a payday loan, and I came across this no teletrack payday loans guaranteed approval service. What does ‘no teletrack’ mean? Is it safe for borrowers to deal with lenders offering these loans?” – George, Grand Forks, ND
No teletrack payday loans guaranteed approval means the lender won’t check your record on past loans. A teletrack is a nationwide system used by many payday lenders to check on borrowers’ loan performance. The system is provided by a private third party and lenders subscribe to it to check borrowers’ data. It serves two purposes: to protect lenders from fraudulent borrowers and to assess borrowers’ loan behavior.
Today, more advanced reporting systems allow teletrack to assess borrowers’ financial transactions and credit history more closely. That means your credit profile is more accurate and lenders can use it when deciding if they should offer a loan.
If you have an outstanding debt or unaccounted loan, it will appear in the teletrack database. This will be a factor if you can get another loan or not, which is the same practice in the UK or Canada, depending on your risk assessment by the lender. Teletrack systems are used by both storefront and online lenders, and by other micro-lenders. However, it doesn’t include your bank activities, which is reported in another system called Telecheck or Chexsystems. So, is this loan for you?
Pros and Cons of teletrack
Loans that use teletrack means you’re likely dealing with legitimate lenders because loan providers are closely scrutinized before they can access the system. Likewise, the lenders’ terms are more likely regulated by government so you are assured of Fair Credit Reporting Act, which governs the collection and use of credit information. However, lenders that use teletrack have more stringent requirements, making it harder for you to get a loan.
If you defaulted in a payday loan before, or had problems paying on time, it is indicated in the teletrack system. Applying for fast and easy loans again may pose a problem since lenders will consider your past record to anticipate your ability to pay back. In this case, a no teletrack payday loans guaranteed approval can be helpful especially if you need the cash now; and more importantly, if you know that you’re more capable to pay on time today.
If you don’t have a late payment or bad record on previous payday loans, any direct lender will likely give you a quick guaranteed personal loans approval. Even if you have a bad credit incurred from the bank, this record is not reported in teletrack, so it should not affect your application for payday loans. In this case, you have more lenders to choose from (those that use or don’t use teletrack) to get the best terms for your loan.
You don’t have to worry about teletrack if you could boost your credit score. Try to implement these tips to raise your credit score quickly, and avail loans easily.
You may be wondering why some lenders will not use teletrack to assess your risk. Isn’t it self-defeating on their part? It is, in fact. That’s why it’s more likely that this loan will have a higher interest rate than regular payday loans, or that you may be charged with extra fees to augment that risk for the lender. While some states put a cap on the interest, a University of Washington report shows that some states do not regulate interest rates.
Just remember one thing: this loan gives you a breathing space to get emergency cash for now; use it wisely and pay it back to improve your loan record so you’ll have more flexibility in the future. More lenders to choose from means you have more chances to pick lenders that follow these good practices recommended by UK-based The Good Practice Charter.
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