When it comes to securing finance—whether for a car, a business asset, or personal use—your credit score and bank conduct play a major role in the outcome. Many people focus only on their income or the amount of the loan, but what’s behind the scenes in your credit file and bank statements can make or break your application.

Here’s what to know if you want to put yourself in the best possible position.

Why Credit Inquiries Matter

Every time you apply for a loan, credit card, or even some Buy Now Pay Later services, a credit inquiry is recorded on your file. While a single inquiry is usually fine, multiple inquiries in a short period can significantly lower your credit score. This makes lenders nervous—even if you weren’t approved or didn’t proceed.

Lenders see too many recent inquiries as a potential sign of desperation or overextension. Worse still, it can limit your options if your score drops below certain lender thresholds, which may force you into higher-rate products.

🟢 The higher your credit score, the more choice you’ll have—and the lower the interest rates and fees you’re likely to be offered.
🔴 On the flip side, a lower credit score can mean fewer lender options, and those that are available often come with higher interest rates, stricter terms, and extra fees.

Payday Lenders Raise Red Flags

Inquiries from payday lenders (like Nimble, MoneySpot, or Cash Converters) are one of the biggest red flags to mainstream lenders—even if you’ve never actually taken out a loan. Some payday lenders don’t leave an inquiry behind, but if you’ve applied and one shows up, your application may be subject to extra scrutiny.

Even without an inquiry, if the lender requests your bank statements, any evidence of payday loan repayments can quickly derail your application. This includes direct debits or transfers to short-term lenders.

Bank Statement Triggers: What Lenders Are Really Looking For

Once lenders dig into your bank statements, they’re not just confirming your income—they’re checking your day-to-day conduct. Here’s what often gets flagged:

  • Payday lender activity: Even repaying a small short-term loan can raise concerns.

  • Direct debit dishonours: Missed payments show instability and a lack of buffer.

  • Undisclosed liabilities: Loans or repayments not listed on your application are a major compliance issue.

  • Frequent overdrawing: If your account regularly goes into negative, that’s a warning sign.

  • Gambling activity: Frequent transactions to betting platforms may be interpreted as financial risk, even if your income is high.

  • Excessive ATM withdrawals: Regular large cash withdrawals can raise questions about untraceable spending or undeclared obligations.

This is why it’s important to tidy up your bank conduct at least 3 months before applying for finance. Lenders often request your most recent 90 days of transactions.

How to Protect Your Profile

Here are a few simple but powerful ways to get yourself finance-ready:

  • Avoid applying for multiple loans or credit cards at once. Every inquiry matters.

  • Pause or reduce Buy Now Pay Later and payday activity. They’re heavily scrutinised.

  • Keep all loan and bill payments on time. Even small defaults can damage your score.

  • Avoid bouncing payments or overdrawing your account. Lenders are looking for stability.

  • Be upfront about all liabilities. Brokers can work around known issues, but not surprises.

Your credit score is just one part of the picture—lenders also want to see consistency, honesty, and responsible banking. A few small adjustments in the months leading up to your application can make a big difference in the loan options and rates available to you.

If in doubt, speak to your broker early. A quick review of your credit and bank profile can help you avoid hidden traps and apply when the timing is right.