The standard procedure of lenders when a loan application is submitted to them is to check the credit history and credit rating of the loan applicant. A loan applicant with a credit score which is higher than 650 is considered a good risk and the chances of having the loan paid back are high.
A loan applicant who has mismanaged his credit and ended up with a lower score is considered a risky borrower. The lender will most likely reject the loan application of someone with a low credit score or a poor credit rating. This is why people who have poor credit ratings want to get loans that do not need credit checks.

There are many legal ways to obtain loans that no longer entail the revelation of a poor credit rating. But there are also unethical ways that must be avoided. Needless to say, the unethical ways can spell big trouble. A loan applicant must be wary of so-called financial advisors that suggest these unethical ways. A loan applicant may be advised to twist some truths in the paper so that the applicant is projected as a more financially stable person.

For example, a loan applicant who does not own a home but lives with his parents is not considered a good risk borrower by many lenders. On paper, this loan applicant may be advised to list his parent’s residence as his own. Another example is to enlist the cooperation of an employer or an officemate to lie about the actual salary being received by the loan applicant. And still another way is to establish a bogus corporation that will reflect the enumerated stocks as the assets of the loan applicant. When any of these methods are being suggested by a so-called financial advisor, a loan applicant must immediately head out of the door.

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