If a loan is applied for, the applicant must disclose income and expenses to the respective credit institution. Together with Credit Bureau information, this enables the bank to assess the customer’s creditworthiness. With the help of the payroll, the lender can easily see whether the amount of income is easily sufficient to cover monthly expenses such as rent, gas, electricity, maintenance, insurance and any fuel costs. If applicable, the applicant already has a loan, so that credit obligations from this would also have to be taken into account. After deducting all current financial obligations, you should have a freely disposable income that is sufficient to pay off the new loan installments. The financial institution does not only carry out this check on the basis of proof of wages.
Only bank statements disclose income and expenses
Account statements serve the same purpose. Most of the time, the lender would like to have the current account evidence from the last 4 weeks or 2 months. After all, with the exception of any attachments or maintenance obligations, no expenses are apparent from the mere slip of the wages. This is the main reason why no credit is granted without bank statements. Because if a loan were approved without bank statements, any return debits would not be available due to a lack of funds. Such facts are an indication that the prospective customer cannot service his current liabilities.
Guidelines to prevent the granting of a loan without bank statements
In order to be able to check the truthfulness of the application data, the acceptance guidelines of the industry prevent the granting of a loan without bank statements. Account statements reveal, for example, how high the rent or maintenance payment actually is. Few banks agree to waive a complete account statement for the past two months for smaller loan amounts. A loan without bank statements is therefore conditionally possible as a credit line. From time to time the banks limit themselves to verification of the pay slip. Those interested in credit are free to inquire at the bank whether certain cash outflows may be canceled, since the disclosure would be unpleasant and a loan without bank statements should be taken out.