Pitfalls of No Teletrack Payday Loans
No Teletrack payday loans can provide you with a way to get money quickly even if you have bad credit. Even though these loans can be very convenient, there are several potential problems with them that you should know about. Here are a few things to consider about no Teletrack payday loans and why you should most likely avoid them.
What Is Teletrack?
Teletrack is much like a credit bureau that is used by payday lenders. This is a company that tracks information about individuals. They are going to be able to tell the payday lender all kinds of personal information about you. Before a payday lender issues you a loan, there is a good chance that they are going to turn to Teletrack to help them with their decision.
High Interest Rates
One of the biggest problems with going with a no Teletrack payday loan is that you are going to have to pay a higher interest rate. Offering a no Teletrack loan is a big risk for a lender. There is no way for them to know whether an individual is trying to commit fraud or not. Someone could use a Social Security number of a deceased individual and give the lender completely fake information. The borrower could take the money and leave town with it. Because of this increased risk of default, the payday lenders that offer this service have to charge higher interest rates to everyone else. The higher
rates help to cover the costs of the loans that default. Interest rates for these types of loans are going to be much higher than any other type of loan that you could get. Therefore, you need to make sure that you need the money desperately before you even consider this type of loan.
In addition to charging high interest rates, these types of lenders are going to charge high fees as well. There is a good chance that you are going to have to pay some type of application or set-up fee. If you are unable to make your payments, you are also going to have to pay additional fees. You may have to pay something to extend the loan, or you might have to pay late fees. Depending on how late you are with your payments, the late fees could add up to more than the entire amount that you originally borrowed.
Another problem with this type of loan is that you may be required to give the lender some type of collateral. When you are dealing with a no Teletrack payday lender, they really do not know anything about you. In order to help themselves guarantee the loan, they might want you to provide them with some type of collateral. For example, this could include providing them with the title to your car until you repay the amount of money that was originally borrowed with the loan.Source: m.finweb.com
Category: Payday loans