Bank Statements Loan

Bank Statements: Why do you need them for a Personal Loan?

When applying for any type of loan, you will generally be asked to provide recent bank statements. It can be hard to understand why lenders need such personal information, like where you had lunch yesterday and how much it cost! The fact is, bank statements are a very important part of your loan application.

To give you the best chance at getting your loan approved, it can be helpful to know what lenders look for when assessing bank statements. We’re not fussed about where you had lunch (or how much it cost) but as a responsible lender, we need to ensure you’ll be able to comfortably afford your repayments. Here’s a few things lenders look for:

A stable income

A consistent income from the same employer means you’re more likely to be able to make any future loan repayments. Which means you’re more likely to get your loan application approved!


Not surprisingly, you’ll need to clearly be able to afford the repayments by having enough disposable income after expenses. Everyone’s situation is different, so there’s no hard and fast rule around exactly how much is required.

Payday loans

Payday loans are often easy to get, but can easily start a spiral of unaffordable debt. It’s definitely best to avoid payday loans as they can be a sign of unaffordability and risk for the lender – which would likely be declined.

Gambling transactions

While lenders don’t look for your recent lunch transactions, they will look for gambling transactions. If they are ongoing or frequent, this could hurt your chances of an approval. The safest bet is to stay away!

Other loan repayments

How you’ve managed other loan repayments will give lenders an indication of how likely you are to be able to make repayments on your new loan. Any defaults or unarranged overdrafts (from loans, or any transactions) won’t help your cause. But consistent payments will help your chances of approval, and can only improve your credit rating.

So what about bad credit?

We understand it can be frustrating trying to get finance if you have bad credit. We have some of the most flexible lending criteria in the country, so even if you have bad credit and a few glitches on your statements, we might be able to help with a loan.