Sometimes, when money is really tight and there are no other financing options in the horizon, it's not enough to just turn to one payday loan to get the money you need. Sometimes, you can't even wait to repay for your previous payday loan so you can obtain another similar loan. When this happens, you'll usually have a problem with many lenders, who will refuse to do business with you because of a yet-unpaid small cash loan you made. For situations like these, there is one loan solution you can turn to: a no teletrack payday loan.
What is a no teletrack payday loan?
To understand what a teletrack payday loan is, you must know how payday loans work. As its name suggests, a no teletrack payday loan is your basic cash advance loan, except that lenders do not use a teletrack service to perform credit checks.
A teletrack service is a record of any short term or small loans you might have received in the past, including payday loans. The service will also show if you've ever had any problems with your past payday loans. Most lenders use this service to verify all the information details you have provided them in your application. This is in lieu of providing collateral, guarantee or security for getting a payday loan.
Why do lenders have to use teletrack?
Payday loans are unsecured loans. They are only backed up by your promise to pay with your forthcoming paycheck. To ensure that you are not a high risk borrower, lenders will often turn to a teletrack service to ensure that you have no other outstanding loans that will make it difficult for you to pay back the loan you are applying for.
This will assure the lenders that you are indeed capable of paying back the loan you will obtain from them. Too many loans, when figured against your monthly net income, can be a huge point against your approval.
Should you use a no teletrack payday loan service?
There are different reasons why some people prefer not to have a teletrack check their loan history, but most lenders see this as a sign that the borrower has certain troubles with his credit. Too many loans can mean that your finances are in bad shape and that you are probably a high risk borrower.
Most lenders who offer no teletrack payday loans also charge higher interest rates. Since these loans are short term loans involving a repayment period of about 2 to 3 weeks, it would mean you will have to produce enough funds in order to pay back your loan. Otherwise, higher interest rates will be applied on your unpaid loan amount, making it a little harder for you to pay it back when the next repayment period comes along.
However, a no teletrack payday loan is also advantageous in that they are easy and convenient to apply for. You only need to have a bank account that is at least 3 months old and should have a regular source of income. Your banking account or your credit history will not be checked. No teletrack payday loans are an excellent source of cash for people who have bad credit history or those who have recently filed for bankruptcy, offering a quick source of cash that can cover for an emergency financing problem.
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