Bank statements when you apply for a loan
Posted on Feb 27, 2024Credit unions, like banks and building societies, will usually need to view your last 3 months bank statements when you apply for a loan, but why?
As a credit union, we are a responsible lender, and we always take care to make sure your loan repayments would be affordable to you and do not have a negative impact on your financial wellbeing.
To make sure your repayments suit your budget, we may request to see your latest 3 months bank statements, along with your payslip. Bank statements are a great tool to provide all the of information our team needs to assess your loan application quickly.
Take a read to find out what we look for when carefully considering loan applications and how you could speed up the application process too!
Your income
On your bank statements, we look for regular wage payments from your employer. This allows us to see what you have coming in each month and work out what would be an affordable amount to repay. Remember, we are a responsible lender and will only lender what is affordable to you.
Your outgoings
As a responsible lender, we do not want to put you under financial pressure. Your bank statements allow us to see that you are on top of your regular outgoings such as mortgage / rent payments, utility bills and direct debits. If a member is paying their essential bills comfortably, a Penny Post loan can help them have some extra cash to spend! Lending to a member who is missing mortgage payments or struggling to pay their bills, extra borrowing will put you under further financial strain. We are a responsible lender and wouldn’t want to put you under more financial pressure.
Day-to-day spending
We all like to enjoy some downtime so after you’ve paid your bills, we want to be sure that you have some money left over to enjoy yourself cover your day-to-day spending. Some larger loans, mean we need to change your payroll deduction or Standing Order amount and we want to be sure that this will leave you with a comfortable amount of money.
To make the application process even easier, you can supply your bank statements while completing your loan application. We understand that sometimes you may send in your bank statements after completing the loan application; depending on how you submit your application, we will get in touch to request the relevant information. You can even bring or post your physical bank statements being sent to our office although this takes a little longer.
So, we can assess your loan application without delay, make sure your bank statements:
- Show the last 3 months of transactions, containing your wage being paid each payday.
- Show a running balance – this your balance after each transaction, which is usually displayed on the right-hand side of your statement.
Open Banking
Have you tried Open Banking? With your consent, Open Banking allows us to view your recent bank statements digitally, speeding up the assessment process and saving you time. Open Banking is safe, secure, quick, and easy.
Applying is easy!
With rates from just 2.9% APR and cheaper than most credit cards, our straightforward loans are easy to apply for, with options for everyone! And … with save as you borrow, you’ll have a lump sum when you’ve repaid your loan too.