No Teletrack Payday Loans: Beware
The world is full of things that look great on the outside, but are actually dangerous and can cause harm to people. No teletrack payday loans are a prime example, as they might seem like a great idea at first, but under closer inspection, you can find a dangerous gamble.
Payday loans are unlike any other form of credit that you might obtain from a financial institution. Payday loans are short-term fixes for temporary financial troubles, such as unexpected bills and financial emergencies. The APR’s on payday loans are typically very high, and one can find themselves in financial trouble if they don’t approach payday loans from an educated perspective.
Typically, when you apply for a payday loan, the lending company will run some form of check to make sure that you are who you say you are and that you don’t have any severe credit problems in your past. This might include a background check, a credit check or a check within the payday loan industry. Whatever the case, this process is intended to protect both the lending company and the person seeking a loan.
With no teletrack payday loans, no such check is run on applications. That means that anyone who has a state-issued identification card can obtain a payday loan from that company, and it is something to watch out for. Although you might feel that you’ll be more likely to be approved by no teletrack payday lenders, you could be setting yourself up for a fall.
Teletrack is one of the most commonly used systems for checking up on an applicant. It lets the lending company know whether or not an individual has an outstanding payday loan, and whether or not they have had problems with payday loans in the past. For example, if an applicant has two other payday loans open but has made no attempt to pay them back, then that information will be given during the teletrack check. Similarly, an applicant who has obtained five payday loans in the past but has taken more than a year to pay them back will also be shown in the teletrack report.
Any lending company who professes to disperse payday loans with no teletrack check is asking for trouble. This usually means that their loan fee (the amount added to the loan at the time it is paid back) will usually be higher and that their APR (annual percentage rate) will likewise be much larger than with a lending company who does teletrack checks.
It might seem likely that you will be approved much easier from a lending company that does not perform teletrack checks, but unless you have something to hide from the company, you are better off going elsewhere. Many of these companies are less than reputable and charge hidden fees, exorbitant interest rates and might even be participating in illegal practices.
Before applying for a payday loan, regardless of whether or not teletrack is performed, it is important to research the lending company thoroughly to discover any negative feedback from past clients. There are hundreds of websites on the Internet which allow users to post their experience with various companies, and if you see hundreds of responses warning you against a payday lending company, you will be better advised to go elsewhere for your loan.
Furthermore, if you do accept a payday loan from a no teletrack provider, make sure to keep copies of all correspondence with the lender and to keep your paperwork filed away in case you need it. Unscrupulous payday loan companies may try to obtain more money from you or otherwise defraud your loan from them, and you should be ready to go to court if it is necessary. Just because a lending company demands more money does not mean that they are legally entitled; never give more money than you think you owe, and always consult with an experienced attorney if you find yourself in a compromised position.
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