Why 3 year of address details?

Lotta

Why do banks when you apply for a bank account want address details for the last 3 years? What is the purpose?

Cheers
Lotta

anniecave

I believe it's because they want enough information on you to be able to properly credit-assess you.

Generally if you've been at the same address for a long period of time, you're considered a good credit risk, but if you've moved house 5 times in the past two years then you'll be considered more risky!

Also if for example you've recently moved, then by asking for your previous address, it enables correct updating of your credit files, as the company you apply to will feed that information back to the credit reference agencies. This will enable everyone to link you living at your current address with you living at your previous addresses.

It will mean for example if two years ago you were living at a different address and at there you defaulted on a loan, or got a ccj, or even things like missed payments on a credit card etc, then even though you have moved address, your record will still follow you.

If for example two years ago you'd been living at the same address for 10 years with a perfect credit history, then linked with your current address with two additional years of good credit, you're quite likely to be able to get credit.