But usually, they want to learn more about the person and their spending habits.
Lenders have several reasons for wanting to see their customers’ bank statements. While missed payments for credit cards or personal loans may demonstrate that an applicant might not meet payment deadlines. Other factors, like direct debits, may show the applicant’s reliability and consistency. Undocumented sources of gifts, withdrawals, or large depositsĪll these factors go into the lender’s decision to approve or reject a loan or credit application.įor instance, if the applicant’s bank statement shows that they’re exceeding their overdraft limit regularly, the bank may question their trustworthiness.Lenders scrutinize bank documents to look for details like: When verifying loan applications, most lenders ask for more information through a person’s identity documents, recent bank statements, or utility bills, among other documents.īank statements, in particular, tell a lot about the applicant. Whether you operate a small business or large lending organization with millions of customers, the chances of people submitting fraudulent applications for mortgages or other loans are high.
