It’s a sad fact that some creditors seem to think that you run some kind of “checks unlimited” reserve, and expect you to submit as many checks to them as possible every single month. What with bills and groceries, it’s not all that uncommon to find yourself without enough cash to make it through until your next payday — which, if you’re like most working stiffs, may be as much as a week or more away. If you’re low on bank funds or you’re trying real hard not to touch that retirement nest egg, what are your legal options? Your bank’s unlikely to be willing to agree to a $200 loan to tide you over. It’s a big chunk of money or nothing, since after all they need to pay for the bank president’s yacht, and interest on a piddling loan like the one you’re after isn’t even enough to pay for a gallon of diesel.
To the rescue!
Fortunately, a variety of lesser financial institutions have stepped into the gap with small short-term loans to cover just such shortfalls. Admittedly, these “” also tend to carry high rates — sometimes extremely high, because they’re considered high risk. Here’s how it works. You head to your local check cashier or finance company, which may offer ranging in size from $100 to $500 (sometimes higher). You write them a check, which will consist of the amount you need plus a fee, and post-date it to just after your next payday. They’ll give you the amount of money the check’s made out for, less the fee, and put the check aside until it’s time to deposit it. Et viol — a flexible loan that takes care of your immediate needs.
Many lenders make use of a service called Teletrack to make sure that you really do have an account with a particular bank, so that they can expect to be paid when they deposit your check. You see, despite all the banking information on your checks, most lenders are well aware of the fact that you can order checks online that have anything printed on them: they’ve been fooled too many times. However, on the other side of the desk there are plenty of people who don’t want some check cashier checking them out with Teletrack, so these days facilities offering “no Teletrack payday loans” are thriving. It’s as easy to find these venders online as it is to find places where you can get cheap mail order checks; and if you prefer to preserve your privacy, no Teletrack lenders just might be the ideal alternative.
Can you say ouch?
Payday loans can save your bacon, but that’s not to say that there’s not a downside. The fee structure, especially for a no-Teletrack, typically comes to a few percent per fifty or a hundred dollars. Given the Truth in Lending Law, most lenders won’t hesitate to lay it all out for you; and really, a few percent doesn’t sound so bad, right? Think again. If the fee is 5% per $50, that means you’ll have to pay $10 per $100 borrowed — and the percentage goes up with every $50. On the other hand, if the car needs a new tire right away so you can get to work, or you really need a few hundred bucks to pay that annoying bill collector, that 10% or 20% interest may be the sweetest fee you’ve ever paid. With no-Teletrack loans, you get the money you need and maintain your privacy, too.