How it works and and what to watch out for with lenders that don’t use it.
How does Teletrack work?
For many years, the three main credit bureaus, Experian, TransUnion and Equifax, didn’t keep track of payday and similar short-term loans. With Teletrack, potential lenders can access information beyond your traditional credit history, including your payment history for things like rent and utilities.
Teletrack instantly determines creditworthiness through two products available to lenders:
- CyberScore. A system that discovers your history of online applications for loans and credit cards.
- Decision Manager. A score that combines data on your credit score, payment frequency, earnings and employment history.
What is a no-Teletrack payday loan?
No-Teletrack loans are simply short-term loans that don’t check your history on past loans. So any bad credit or unpaid loans that you may have in your history shouldn’t affect your creditworthiness. A no-Teletrack loan is typically approved even if you’ve defaulted on payday loans in the past.
Compare short-term loans for bad credit
Benefits and drawbacks of no-Teletrack payday loans
- Guaranteed approval. With a no-Teletrack loan, your credit history isn’t a problem.
- Fast turnaround for short-term loans. Loans can be approved within a day, depending on the lender.
- Funds can be used for any purpose. You won’t be limited in how you can spend your loan.
- Higher interest. These loans typically come with higher APRs than other payday loans.
- Less regulation. You’ll need to research these lenders to determine you’re working with a reputable, legitimate lender.
- With no reporting, you won’t build your credit. If you’re looking to build your credit with a short-term loan, you may want to look at other types of lenders.
How to compare short-term loans
short-term loans can provide some breathing room when you need money quickly, even if your credit isn’t perfect. Before agreeing to a loan, compare these important elements against your needs:
- APR and fees. The APR represents the true cost of a short-term loan and can be 400% APR or more.
- Required creditworthiness. While banks and more traditional lenders can require higher credit scores, online short-term loans typically require score of 600 or more. No-Teletrack loans may have even more lenient credit requirements.
- Repayment terms. When signing a short-term loan contract, read the repayment terms carefully. The loan is repaid within a specific period of time, often the day after your payday. Know how much you’ll pay for any late payments.
- State regulations. Confirm that your lender is licensed to provide services in your state of residence. Check out our guide on payday loan regulations by state.
- Limits on spending. Some short-term loans require that the money is used for a specific purpose.
No-Teletrack payday loans could be an option if you’re looking to get cash quickly but have outstanding short-term loans or a poor repayment history. But remain vigilant that you’re working with a reputable, legitimate company and understand your specific loan’s terms and conditions before applying.
You can compare your options for short-term loans on our website to get a better understanding of the lenders available and what they offer.