A bank report contains general information about the account management and the basic financial situation of the credit customer, insofar as this is known to the bank answering the request.
Before lending to commercial customers, financial institutions usually obtain bank information, whereas private borrowers tend to refrain from doing so. In deviation from this basic rule, bank information is widespread for larger loan amounts and if the applicant’s self-disclosure is not sufficiently meaningful. The bank information must not be confused with the Credit bureau information, which is generally obtained before a loan is granted by German financial institutions.
Why bank information is often omitted
Most financial institutions grant a private loan without bank information, as this has to be requested in writing and therefore delays processing of the application simply because of the mail duration. Furthermore, the lender does not need confirmation that the bank details specified for the debiting of the credit installments actually exist, since he pays the loan anyway by means of a bank transfer. Consequently, credit card issuers request bank information more often so that they can be certain that the bank account specified for debiting the credit card statement exists.
A simplified variant of proof of existence for a checking account consists in transferring a trivial amount to the specified bank details. However, this procedure does not guarantee that a specified bank account actually belongs to the applicant, since financial institutions no longer have to ensure that the recipient’s name matches the account holder before being credited.
When is bank information critical?
Even if the bank grants a loan to private customers without bank information, it regularly has the right to obtain one. A short processing time is the best way to tell that she is actually not catching up. It is important for the customer that the bank grants a loan without bank information, especially if there is a current overdraft. The central information in a bank information is whether the customer has an existing bank account as agreed.
The mere exploitation of the overdraft facility granted does not constitute an overdraft, but rather a possible correct use of the checking account. Financial institutions only refer to a debit balance on the checking account if they have not granted a credit limit or if the customer overdrafts it. The amount of the credit or the approved liabilities is never apparent from a bank report.