Teletrack is the company that collects information on consumers and shares this info with banking institutions, in particular those dealing with short term loans. The information Teletrack plays the decisive role on the chances to get approved, so if a person has a poor credit score, he or she failed to repay some other loan on time in the past and has negative records to the name, the odds for getting credited would significantly drop. But this no longer seems to be the case. As the regulators are decisive about severely limiting the payday loans as a solution, the need in through credit checks is becoming rudimentary, and here’s why.
When the maximum amount of payday loans were capped at around $1,500 mark and the demand for this kind of services was higher, lenders had little options in their arsenal, and Teletrack was the game changer. It helped lenders cut off a huge amount of extremely risky deals from a business standpoint and significantly decrease the amount of fraud requests. But as the regulations got more tougher, taking higher risks is becoming the only way to keep afloat for the lending businesses. Thus, for example, in Louisiana the maximum amount a person can be offered is $350. Teletrack services cost money, and $350 per loan becomes the amount that is reasonable taking risks on. Therefore, the ambitious lending companies seem to be running out of options, but to keep their approval rate high, to survive in the tough times for the industry.
So how does it work for the common people? Basically, your application undergoes a series of automated verification procedures, but it has nothing to do with the actual Teletrack data. Therefore, even if you have a poor credit rating, it is not likely to influence your credit score (in most cases it doesn’t). Moreover, your negative credit background may not even influence the total amount. As the interest in the payday-lik solutions is rapidly decreases with the introduction of caps and restrictions, $350 max in Louisiana seems to be the final border to remain financially healthy as business. Therefore, the odds you will be provided with the maximum amount are very good in 2016.