It’s a classic Aussie joke – at one point or another, we’ve probably transferred cash to a friend after they paid the bill in full with a silly or suggestive description.
It could be illicit drugs or sexual services, but it is definitely not just “dinner.”
And while it’s all a joke at the time, lenders are scrutinizing these kinds of descriptions on the bank statements of those applying for a bank loan. Domain reported.
“We literally go through your statements line by line,” Pink Finance CEO Nicole Cannon confirmed to Yahoo Finance.
“And we have to categorize it, and if the description has something suggestive, the banks can question it.”
And, if lenders see the same suggestive expense more than once, they might wonder if that particular activity is an ongoing expense.
But the credit institutions are also open to your explanations.
“You can tell them it was for a dinner or an event, and we will include it as an entertainment expense. We can classify it, but know that it will be questioned. “
What else are lenders looking at?
Are you an avid Uber Eats user? Banks will be watching that too.
Managing Director of Gemmill Homes, Craig Gemmill, said prospective home buyers should minimize their expenses.
“Work to minimize unnecessary expenses in the months leading up to the application,” he said. “Fewer Uber Eats could have a significant impact on your chances of approval.”
Lenders also look at gambling habits, as White Knight CFO Steve Vicary said. Domain it is an important “red flag” for a lender.
Banks have also become more intrusive since the Royal Commission: they want to know about your money night.
If you’re stressed out by the last decade of silly transfer descriptions, or a crazy pre-wedding party, don’t be; According to Cannon, lenders will generally see the last three to six months of returns, so make sure there is “good behavior” on those.
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