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It can be disappointing when you look for a loan and can’t find one, usually because of a terrible credit rating. Two important factors are considered when a lender considers borrowing. They look at the borrower’s personal circumstances to make sure the financial burden will not be too heavy and ask if lending to that borrower is an acceptable risk for the lender to take. A credit score is based on the information they give in their application, along with other outside information like from outside Credit Reference Agencies. One lender might consider the loan to be too great a risk whereas another lender may find the risk acceptable to them. Although most banks and finance lenders use a similar system, there are variations and different guidelines to each one. Therefore one lender may accept you whilst another may reject you.

Say you want a $5000 payday loan however. Background credit checks are usually not performed for this type of loan. All you need is evidence that you are in employment and that you earn enough each month to pay that amount back on your payday. $5000 payday loans are quite rare and the amount offered is usually about $100- $1500.

I need a loan for $5000” a borrower may say to a lender. This can be a bank, credit union, online lending company or other financial institution. A background credit check is nearly always done. You can check your credit rating online yourself, the most well-known company for allowing you to do this is probably Experian. $5000 loans with no credit check are very rare.

A no doc home equity loan can allow you to release the equity on your home to get cash in return. It is quite a fast process as no documents need to be shown; you only need to tell them your income. You should be careful about putting your home on the line as it can be repossessed if you don’t keep up with payments. The interest rate will be higher because it is a no doc loan but the process is faster. The level of trust between borrower and lender needs to be high for this type of loan since no documents are shown.