Eight Reasons Why You Should Regularly Review Your Bank Statement

Dami Adenuga ADs

What is a bank statement , aside from a piece of paper showing how much money you have ? In short, it is a snapshot of your banking activity during a specific time frame , typically a month , according to
www . gobankingrates . com .

Most banks send a copy of your bank statement by mail or through online paperless statements for review each month — and many people don ’ t pay attention to theirs .
Here are eight reasons why you should start reviewing your bank statement each month and stop ignoring it now.

1 . Applying for a mortgage loan: When you are applying for a mortgage , you will have to submit a copy of your bank statement to verify your income . Mortgage lenders take your income and credit score into consideration when determining whether to approve you for a loan and what interest rate you will get.
Your bank statements show how much income you have , how stable it is and where it comes from . All this information will give lenders a good idea of what kind of borrower you are .

2 . Filing your taxes : If you claim itemised deductions on your taxes , you need a record of how much you spent and on what. If you don ’ t have itemised receipts for every purchase, your bank statements and credit card statements can serve as backup . You don ’ t need to submit receipts or bank statements when you file, but if you get audited, you ’ ll be happy you have them.

3 . Disputing a credit report: It is your responsibility to fix any errors on your credit report . To dispute a credit report error , you will have to contact the credit reporting bureaus and your creditor — and provide details about the error . To support your claim , you might need to provide copies of your bank statement , which would show payments that perhaps were not reported .

4 . Applying for a car loan: Whether you are applying for dealer financing or a car loan through a third – party lender, you will need to provide proof of income . Although your recent pay stub is an option, your bank statement can also prove you have sufficient , steady income . If you are self – employed and applying for a car loan , a lender might require you to provide three months’ worth of bank statements .

5 . Creating a budget : One of the best things you can do for your financial future is to create a budget and stick to it. Referring to your bank statement to see your spending history can help you plan and track your budget .

6 . Qualifying for medical programme : Government programmes especially in developed countries offer medical coverage for disabled , elderly and low -income individuals . This idea is being introduced in Nigeria as well. Because this is an income – based programme, there are limits on how much you can earn and remain eligible for coverage . To qualify for this coverage , you will need to submit your bank statements .

7 . Filing for divorce : When you file for divorce , you must turn over documentation that lists your shared and individual assets . Couples often have disputes over assets during divorce proceedings ; your bank statement is a good way to show your current financial status .

8 . Refuting a transaction: If you don ’ t review your bank statements you might not notice unauthorised charges or transactions — and you could end up paying for them. For instance , you could see a cheque that was cashed on your account that you don ’ t remember writing . Should that happen, your bank statement would show the cheque image with your signature on it , which could serve as proof of fraud if it is a false signature .

Although your bank statement might seem like an unnecessary piece of paper — or virtual document — it can be useful in many situations . Not only can it help you make sure your account balance and transactions are accurate , it can serve as proof of income , so carefully review yours every month . If you don ’ t know how to get a bank statement , contact your financial institution for help .

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