Payday loans are small amount cash advances taken out for a short period of time, usually until the borrower’s next paycheck arrival. The borrower can apply for a loan of any amount up to $1000 (and more). Payday loans are often called emergency loans and come in particularly helpful in times of any kind of financial emergency requiring fast solution. There are many kinds of those small cash advances. Here, three of them will be discussed, namely no credit payday loans, no TeleTrack payday loans and no scan payday loans.
No credit check payday loans
What is a credit check? A credit check is a process a lender runs on his/her potential customers to determine whether or not they are creditworthy. A credit check when conducted, contains variety of data, for instance, date of birth and social security number, address and employment history, income information and payment history for loans and other debts. In case a credit check results in a good credit score, a borrower is very likely to obtain a loan on preferable conditions. However, in case of a bad credit score, a borrower may experience difficulties in getting a loan since a lender may lower the amount of a loan, increase interest rate on a loan, or simply refuse to give a loan.
Many people with bad credit get rejected by regular financial institutions such as banks or credit unions. That is why they turn to payday lenders in times of financial emergency because they offer no credit check payday loans. No credit check payday loans put cash into the borrower’s pocket quickly and easily. Unlike bank loans, they are convenient, hassle-free and there’s no credit check involved in decision making process. Instead, cash advance lenders use the borrower’s current employment situation and income information to see if he/she is creditworthy. Provided that the borrower meets minimum guidelines and has sufficient income to repay a loan, he/she will be instantly approved.
No TeletTack payday loans
What is a TeleTrack? A TeleTrack is a platform used by financial business to assess the risk involved in rendering financial services such as loans. By means of a TeleTrack system, the borrower’s lending history is checked together with his/her identity, general risk assessment is conducted and fraud detection. There are two important things to remember as far as TeleTrack is considered. Number one thing is not to apply for more than one loan at once. Payday lending companies can see whether or not the borrower has applied for other loans. It looks a bit suspicious to the lender if the borrower files more than one loan application in a thirty-day time period. It’s good to apply for one payday loan at a time and in case of the application being turned down, it’s better to apply elsewhere. Number two thing is to provide accurate information. Payday lending companies verify borrowers’ identity with the use of various databases. Thus, it’s of great importance to provide only accurate personal information, for instance employment history, a valid mailing address, phone number and the like.
There are, however, many payday lenders who provide no TeleTrack payday loans. No TeleTrack payday loans are loans given to the borrowers without using the TeleTrack system. No TeleTrack increases the chances of getting a loan of people with bad credit score. That is why no TeleTrack cash advances constantly gain on popularity among bad credit holders.
No SCAN payday loans
What is SCAN? SCAN is short for Shared Check Authorization Network, which is a database of bad check writers in the US. This database is used to minimize the number of bad checks received by retailers and financial institutions. Based on the details provided by the SCAN system, the retailers and financial institutions can determine whether or not to accept a check from a particular accountholder.
SCAN machines scan checks and compare them to all the names in the SCAN database. If one has written a bad check, the machine will notify about it, the check will be refused, and one will get an 800 number to call. Upon calling the number, one will learn that being removed from the system is only possible by paying off the bad check. Once the bad check is paid off, whoever reported one to the system, is requested to remove his/her report.
Many payday lenders offer no SCAN payday loans. It means that the borrower is not verified through a SCAN system. Moreover, in case the borrower fails to pay the loan off in due time, the lender will not report the borrower to SCAN. No SCAN payday loans constantly gain on popularity and a growing number of people use no scan payday loans to take care of their urgent temporary expenses.
Payday loans are sometimes referred to as emergency loans and should be treated as such only. They prove relatively helpful in times of a temporary financial breakdown, however, should not be taken out on a regular basis or treated as a permanent solution to major financial difficulties. Although payday loans are very much convenient on the part of the borrower and easy to get, they come with a dose of risk involved. They have to be repaid in a very short period of time and are know for high interest rate. Thus, before taking out a payday loan, it is advisable that one makes sure there is no other solution available to his/her problems, and in case of major financial problems, perhaps it will be of greater benefit to ask for professional help of a financial counselor.