When you apply for a personal loan, generally you will be asked to provide your bank statements. You may not realise, but your bank statements confirm very important pieces of information. Not only do they verify your income, but they can hold the key to getting your personal loan approved.

Here’s what else can be learned from reviewing your bank statements:


1. Your name and address

Bank statements confirm your name and current address. If these details don’t match your application form, then you will need to explain and provide supporting evidence to prove why there is a difference.


2. How good you are with repaying loans

If you have any existing loans, your bank statements will confirm how regular you are with your repayments, as well as how much you pay and if you ever miss/have a payment dishonoured.

If you are not very consistent with your repayments, any new lender you apply with will show immediate caution because you may do the same with them.

If you’re not meeting your repayments on time because you’re juggling lots of different direct debits at different times, one option you may want to consider is a debt consolidation loan.

These can be very useful to get your finances back on track.


3. Where your money goes each month

Your bank statements don’t just show all your loans and credit cards. On top of these they show your regular monthly expenditure, other direct debits and give a general idea if you conduct your account responsibly.

Ongoing and frequent gambling transactions, withdrawing all of the money as soon as it is deposited and regular overdrawn fees are all signs lenders are particularly wary about and may choose to decline a loan because of them.

credit card statement


4. Is a new loan affordable?

Lenders must assess a loan to make sure it is affordable for the customer. If your bank statements show that you consistently have no money left in your account or you are regularly charged overdrawn fees, this can suggest you may not be able to afford the repayments on a new loan.

If you look at your bank statements right now, does it look as though you would have enough money left in your account each month to make a new loan repayment? If not, it’s never too late to get back on track with your bank statements. Most lenders obtain 3 months of bank statements so they key is to start showing good bank account conduct right now!

So next time you consider applying for a personal loan, or any type of credit facility, we hope you can see how important your bank statements are in the assessment process. We recommend you:

  • Repay existing debts and loans on time
  • Be responsible with your spending
  • Check your account regularly
  • Don’t allow yourself to be charged overdrawn or dishonour fees

All of these will help you show you are a genuine applicant who is ready for the responsibility of a new personal loan.

If you have any queries about your bank statements or in regards to having them assessed, you are welcome to contact us, we are here to help.

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Are you eligible to apply?


It can be expensive to borrow small amounts of money and borrowing may not solve your money problems.

Check your options before you borrow:
For more information about other options for managing bills and debts, ring 1800 007 007 from anywhere in Australia to talk to a free and independent financial counsellor.

Talk to your electricity, gas, phone or water provider to see if you can work out a payment plan.
If you are on government benefits, ask if you can receive an advance from Centrelink.

The Australian Government’s MoneySmart Website shows you how small amount loans work and suggests other options that may help you.

* This statement is an Australian Government requirement under the National Consumer Credit Protection Act 2009.