Best Online Payday Loans – Options and Considerations
Best Payday Loans and Murphy’s Law
Enjoying a payday is a happy occasion but we are not talking about a peanut and caramel infused candy bar. The payday we are referring to is the weekly, semi-monthly or monthly event where the efforts of your labor are realized in the form of a check or an electronic deposit to your bank account. This kind of payday will enable you to purchase lots of sweet treats until the money runs out, usually before your next payday.
Murphy’s law is, “Anything that can go wrong will go wrong”. When that “anything” happens is when you may opt to get a payday loan. Here are a few things to consider and some options when you search for the best online payday loan.
Do all Best Online Payday Loan Lenders Offer Instant Approval?
The word “instant” for payday loans is a bit misleading. While the approval process for a payday loan may take just a few minutes, the actual cash will usually be available the next business day. When you see terms like “same day best online payday loan” or even “quick best payday loan” that usually means next-day funding. And if you need the cash before the weekend, you had better fill out the on-line application on Thursday. Waiting until Friday means you may not get the cash for your instant online payday loan until the next business day meaning Monday or Tuesday after a holiday weekend.
Are Online Payday Loans Available with Bad Credit?
Another consideration for your payday loan is your credit rating. Folks with a credit score in the 700 to 800 range will likely get approved for any type of online payday loan they choose. If your rating is somewhat low or downright poor, you should search for lenders that offer the best payday loans with “no credit checks” or online payday loans “for bad credit”.
The true situation is that some lenders will run a credit check, and some will not. Each lender will have their criteria to approve or disapprove your loan. That information is unlikely to be known to the borrower or a loan matching service.
What is Teletrack and What is a No-Teletrack Payday Loan?
Anyone who has taken out a conventional loan has heard of the “big three” credit reporting bureaus, Experian, Transunion, and Equifax. Historically, the trio has largely ignored online payday loans leaving lenders vulnerable to fraudulent borrowers with little or no information as to the borrower’s previous loan “behavior”.
To fill the need, in 1989 Teletrack was founded as a consumer credit reporting company by a company called CoreLogic and two other companies. Teletrack allows payday loan companies to access information beyond your traditional credit history. Examples of such information include your payment history for rent or utilities.
Teletrack operates by using a person’s history of online applications for credit cards and loans with CyberScore, a security testing and rating service and Decision Manager, a service that uses artificial intelligence to weed out fraudulent online payday loan applications. It combines your credit score, payment frequency along with earnings and employment history to determine a borrower’s creditworthiness.
For people who have defaulted on a loan, even another payday loan, will need to avoid having their credit history reviewed by using a “no-Teletrack” loan company. Usually, this is the last resort for financially troubled borrowers. The main benefits are that the credit history issue gets ignored, there is a quick approval time, with restrictions on how the money will be used.
The three main drawbacks to no-Teletrack loans are a higher annual percentage rate (APR) than other payday loans, they are not as regulated requiring some due diligence by the borrower to find a legitimate lender, and even if you pay it back in time it will do nothing to improve your credit score.
Which is Better, a Direct Lender or a Loan Matching Service?
Let’s briefly look at the pros and cons of each.
Direct Lender: A direct payday lender, as the name indicates, is a financial company in the business of providing online payday loans to people with no “middle-man” involved. One advantage of a direct payday lender is that it is a more direct path to the decision-maker with fewer people involved.
Another good thing with direct lenders is that they are also highly regulated, so borrowers are unlikely to be victimized by a predatory lender pressuring them to sign up for a “best” payday loan that might not be the best with unfair or bad terms. If done “in-house”, underwriting the loan can be processed quicker assuming no negative information about your financial history emerges.
Another plus with a direct online payday lender is possible savings in the payday processing as the “transparency” legislation prevents any hidden costs.
The main drawback of a direct payday loan lender is that a rejection by one lender means that you will go back to “square one” with another direct lender.
Payday Loan Matching Service: the most valuable feature of the payday loan matching service is the number of lenders they can reach on your behalf. You only need to fill out one online application and your information gets sent to many lenders to get you the best possible online payday loan.
Speed and convenience are other benefits of a Loan Matching Service. Behind the scenes, a lot goes on after you hit that “submit” button on the online application form. Your information goes to a lender and if the loan is not approved, it gets sent to another lender and so on. This all happens electronically so the decision is made in mere seconds in most cases.
Loan matching services use dozens of lenders, so the chances of a payday loan approval are high compared to a direct lender. Because matching services give you access to multiple lenders with a single-entry point, an online search using the words “best” payday loan lender will make little sense.
Get Matched With the Best Payday Loan Lender
Your next move is to take just a few minutes to fill out the online application form at the top of this page to get quickly matched with a lender.