“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.
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