Some companies advertise "no Teletrack" payday loans as if it's a special benefit. Regular payday loans are pretty easy to get even if you have bad credit. As long as you have regular income and a bank account, payday lenders don't care about your credit score and won't even pull your credit report.
So what's the big deal with "no Teletrack" loans?
Teletrack is a credit reporting agency too. You might have a file with them even if you don't know it. Unlike Experian, Trans- Union and Equifax, Teletrack offers services that cater specifically to payday loan companies, car title loan companies, rent-to- own places, buy-here-pay-here furniture stores, and those kind of places. They can legally collect information, since they're considered a credit reporting agency subject to the Fair Credit Reporting Act.
Lenders are desperate for any information that will help them avoid giving money to people who'll skip out on a loan. The problem is that payday loan companies really do want to loan money to people with bad credit, so the information from the usual credit bureaus doesn't help them. They don't care if you're behind on your credit card debt or had your car repossessed or whatever. However, they do care if you've skipped out on your last three payday loans or wrote a bunch of bad checks or if you're using a fake Social Security number of something like that.
That's why cautious payday loan companies, like the one I work for, use Teletrack. My boss says he can't imagine not using it. There are a whole bunch of different reports a company can get from Teletrack depending on how much they want to pay, but here's what we can learn:
Whether your Social Security number is a real one that's for a living person.
What payday loans or similar loans you've taken out in the past (unless it's from a "no Teletrack" place).
What loans you currently have out now and what you're renting-to-own (again, unless it's from a "no Teletrack" lender).
Whether any payday loan places or similar lenders have charged off one of your loans in the past because they couldn't collect (unless... you know).
Whether your address, phone number and similar info matches what you're putting down on other current loans. People who plan to skip out on loans and don't want to be found put down fake contact information, of course.
Since approvals need to be done fast, Teletrack also wraps all this up in a handy score, which is their best guess about whether you're a good risk or not.
Does a "No Teletrack" Loan Look Attractive?
If you're actually planning to defraud a payday loan company, just go away. You're making it harder for honest people to get loans.
If you think any of the above might be a problem, but you're honestly planning to pay back a loan, that's when a "no Teletrack" loan might be worth looking for. However, you might be better off avoiding the things that will set off Teletrack's alarms.
For example, if you already have out several payday loans, do you really need another? Yes, it might seem the easy way now, if you're desperate, but the payday loan trap is something you don't want to fall into.
If you've had problems paying back payday loans or similar loans in the past, but you've done fine lately, don't assume that a payday loan place will reject you. Your Teletrack report doesn't have to be perfect. If you're curious what it looks like, you can request a copy of your Teletrack report and correct mistakes on it just like you can with the big three credit bureaus.
11:26 p.m. April 12
How does Teletrack get that informatoin? I thought a loan was private.
11:44 p.m. April 12
They're counted as a consumer reporting agency, so they fall under the Fair Credit Reporting Act (FCRA), which is a federal law that allows lenders to give them your information.
1:15 p.m. April 13
I got a letter from a payday loan company that said I had to pay in full and they would remove the bad report from my Teletrack report so I sent the money overnight but they never removed it. I wrote Teletrack but nothing happened. What do I do?
5:31 p.m. April 13
Getting something removed from Teletrack is pretty simple from the payday lender's point of view. It's just faxing a form. You can check with the payday company to make sure they sent the form, but if they say they did, try disputing through Teletrack. See the link in the last paragraph in the article that tells how to get your Teletrack report and start an investigation with Teletrack.
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