Your Lender Knows Many Things About You - But Do You Know About It

Your Lender Knows Many Things About You – But Do You Know About It?

They say God knows everything. Now I do not want to get all religious, but I can undoubtedly say Banks knows many things about you. No need to be alarmed now. Knowing this is entirely legal, they collect this information to decide if you are the right candidate for the loan!

A bank or a lender collects several information from you when you ask for money from them. You complete all circumstances of the application form and deliver several details in the attached documents or paperwork.

Legally, a bank can keep this knowledge in its records. Imagine if you need a very bad credit loan with no guarantor from a direct lender. If a lender is willing to pay it, they need to know your financial status.

Your Lender Works in Mysterious Ways

A lender or even a bank, how do they give you money with no prior relations. Just think for a moment, give a stranger a huge sum of money just because someone asked them and showed them all the required papers.

Well, of course, your bank is not doing it for the charity. They also make their profit from the interest you will pay to them in future months in the form of every month instalment. This is why the bank keeps a few things hidden or does not reveal them to you unless you ask them.

This is why you must read all the documents carefully before taking out a loan. Taking out a loan is not just about borrowing and returning the money, and it is much more than that.

Today, we will highlight a few grey areas that banks want and others that banks do not want from you. Read ahead if you know about these.

Do they desire to comprehend your work?

We are starting with a simple thing. This one, you probably know. Yes, a bank wants to know about your occupation.

A bank is very much interested in knowing your job profile, your chances of promotion, your performance, not to mention your yearly or monthly salary. Not just that, the bank has its favourite and unfavourite jobs. And if you fall under the favourite job category, consider yourself approved.

Even if you believe you have a promising, well-paying career, your loan might not be approved if the banks do not like your profession. Government jobs are among the favourites, and banks prefer them over private-sector employees because their employment is considered more solid.

Other favoured jobs are Doctors, engineers, attorneys, and other high-profile jobs.

They do not desire you to repay your loans early

This may come as a shock to many, but it is true. Your bank does not want you to pay back on time or before. Some lenders may even incur a prepayment penalty if you pay off your loan early. The longer you take to pay off, the more interest you pay, so the bank makes profits.

If you pay off the debt early, the bank loses its profit. The prepayment penalty is computed as a percentage of your loan total or as a sum that represents how much interest the lender would lose.

You can pay off your personal loan like a pound 5k loan early if you want to, but you may not want to after learning this fact. This is why you must read all the terms and conditions of your loan repayment beforehand and understand every clause well and clearly.

Making early repayment will bring you peace and financial stability, so if you still want to make early repayments, make an additional monthly payment to your monthly instalment. This will help your financial debts and might help you shorten your payback duration by a few months.

They want to know about your property, its location and its market value

The bank or your lender is always concerned with the asset or properties you have and their location. For example, when you apply for a house loan, the property’s location is taken into account.

As you can guess, most lenders favour homes if they are built in a prime location such as city borders or other desirable locations. The location can increase or decrease the property’s appreciation value.

They are not interested in houses in other cities or rural areas.

They do not want to know about your dating life

Unless you are dating a celebrity or a high-profile personality, they are least bothered about your dating life. Whether you had a breakup or a patch up, the lenders do not care about your personal relationship and developments.

They want to know your employer

The bank does not care about your girlfriend, but they care about your employer. They need to Know Who Your Boss Is, and your lender or your bank has favourites amongst employers as well.

The more famous your corporation is, the better your chances are. Big names are on the top of the list, and small start-ups and small businesses fall into the bottom category.

They do not want you to stop using credit cards

Your bank wants you to use credit cards, so they offer several schemes or give rewards for using credit cards. It may seem like a good idea, but trust me, guys, it is not. The more you use, the more you pay them back.

If you are unable to pay on time, it will hurt your credit score. Your credit score reveals a lot about your financial situation, and this is why your lender will ask you to present your credit and bank-related statements.


A bank has the legal right to maintain your information in its records. They earn from the interest you will pay them in the coming months. The longer you wait to pay off your debt, the more interest you will pay, allowing the bank to profit. If you pay off your loan early, you may be charged a prepayment penalty by some lenders.

Make a monthly supplementary payment to your monthly instalment if you still wish to make early repayments. Most lenders prefer homes developed in favourable locations, such as city boundaries or other desired areas.

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