By Frank Jones on January 2, 2012
.jpg.aspx) The only time a no-Teletrack payday loan makes sense is when you are desperate for money and don't have the good sense to avoid payday loans at all costs. It is far better to find lifestyle changes that can save you money over the long term than commit financial suicide with a payday loan. The interest and fees associated with this type of lending equate to a 400% APR or more.
What is Teletrack?
Teletrack is basically a credit reporting firm. That means that Teletrack collects information about the repayment of loans taken out by various borrowers from a variety of lenders. Based on this information, Teletrack assigns some value to the likelihood that a borrower will repay their next loan in a timely fashion. This means that if you repay your loans on time then you can expect lower interest rates and fees in the future. However, with as high as the interest rates and fees are in the payday lending business I wouldn't expect the rates to ever compete with a loan from a bank or credit union.
How does Teletrack help lenders?
Mostly, Teletrack helps lenders make a decision about the interest rate for a loan based on the creditworthiness of a borrower. However, it seems that sometimes Teletrack also assists lenders with marketing information about borrowers. Although, if you're shopping for a payday loan then the use of your personal information for marketing purposes is the least of your worries. I would be far more concerned with the high interest rates and fees commonly associated with this type of loan.
How does Teletrack help borrowers?
Teletrack helps to ensure that you receive credit for making your payments on time and repaying your lonas. By keeping track of your payment history Teletrack enables borrowers to access lower interest loans over time as their credit builds. Although no-Teletrack payday loans are available, using a Teletrack lender can help you repay your loans more quickly over time by lowering your interest rate based on prompt payments.
Why avoid Teletrack?
If you find yourself with no other option than to request a payday loan, which is never a good idea, you should avoid the no-Teletrack lenders. This is a good sign that they offer the highest interest rates and fees. This is really saying something since interest rates in excess of a 400% APR equivalent are common in the payday loan market.
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