Payday loans such as the No Teletrack Payday Loans can go by various other names and do not involve major credit reporting companies. However, this doesn’t mean that many lending companies do nothing to check the credit of the applicant. These companies use a service known as “Teletrack”.

Teletrack deals with non-traditional style loans such as payday loans. Lenders who use this service want to know if the prospective borrower has a history of bounced checks or even check fraud. Teletrack is not part of the decision making process as far as approving the loan is concerned, it merely is a tool used by the lender to determine certain risk aspects of the potential borrower.

No Teletrack Payday Loans mean that the Teletrack service is not used by the lending company involved. This means in effect that the loan is riskier for the lender because nothing is done to check any financial history of the lender whatsoever. Consequently the fees and interest for this type of loan are higher than loans that use Teletrack.

Now keep in mind that Teletrack is not at all like major credit reporting services. No credit number is assigned that implies a relative credit risk to a lender. But it can tell a lender, for example if the prospective borrower committed any form of check fraud, or perhaps doesn’t even have a real social security number. Though most people have a real desire to pay their bills, and to pay them on time, there are a small number of people who are dishonest. Teletrack can help lending companies avoid these people and keep costs down.

Even though payday loans are much easier to obtain for those with credit problems as opposed to conventional loans, people who have bounced check issues have a substantial chance that they will be rejected by a lender for a normal payday loan. This is where No Teletrack Payday Loans may become a viable option.

But keep in mind that No Teletrack Payday Loans are riskier for the lender and therefore the cost of this type of loan to the borrower will be higher.

Also, consumers need to keep in mind that just because the name “Teletrack” does not appear in the name of the payday loan, or that the clerk at the lending store, or that the website does not mention it, this does not mean that Teletrack is not being used. Consumers should ask.

Why is that important? If a consumer is looking for a short-term loan to use in an emergency – remember that’s what a payday loan is – the issue for the consumer is not necessarily if Teletrack is used, but how high the fees and interest rate are if Teletrack is NOT used.

In one form or another, lenders are going to try and protect themselves against potential fraud. They will do this by using a service such as Teletrack, or they will compensate with higher fees and interest. Most consumers should not apply for a No Teletrack Payday Loan unless they are turned down first by lenders who use Teletrack.