Take out a loan in Switzerland.

Switzerland has always been the financial market par excellence. Germans who in this country no longer get a loan because of their burdened Credit Bureau often see the Swiss Confederation as the last way to get a loan.

This type of loan is called Swiss credit and has been on the market for several years. The loans came mainly from Switzerland until 2009, hence the name. As far as is known, only Litebank from Liechtenstein has been granting these loans since 2010. Taking out a loan in Switzerland is no longer uncommon. However, there are a few things to consider.

Taking out the loan in Switzerland – the outlook

If you want a loan in Germany, you have to meet three approval criteria. That is the sufficiently high income, the impeccable Credit Bureau that must not show any negative characteristics and the permanent employment that should not be limited. If a loan seeker can meet these conditions, it also works with a loan.

But there are consumers who have negative entries in their Credit Bureau. That doesn’t have to be anything earth-shattering, since it is enough to have irregularities when paying in installments or an invoice has been forgotten to be paid and the entry is already in the Credit Bureau.

But what does the Credit Bureau mean for a loan approval? Credit Bureau is an economic information agency that collects data from consumers, namely when they take out loans, conclude mobile phone contracts, open an account, all financial transactions. Usually these entries are ignored. Every consumer has such entries in his Credit Bureau. Only when there are payment defaults, loan cancellations, judicial reminders does the previously positive entry become a negative entry.

Credit Bureau’s contractual partners, such as banks, use this information to assess a customer’s creditworthiness. If the above-mentioned payment defaults or irregularities occurred, this signals to the bank that the customer has no faultless payment behavior. As a result, she refuses the loan because she fears a loan default.

Not every loan seeker knows about his entries in the Credit Bureau and falls out of the clouds if the loan is rejected. For this reason, Credit Bureau should provide self-disclosure before each loan. This is the only way to see whether the entries were legally effective or have long since been completed. The advantage with completed entries, the creditworthiness of the customer increases again.

How to get Swiss loan?

How to get Swiss loan?

But as was also found, most entries are rightly in the Credit Bureau, but how does the loan seeker get a Swiss loan? Here he has two options. On the one hand, he can submit the loan application directly to the bank or he can commission a credit intermediary to take over the entire credit process. The customer only has to provide the credit documents.

If you look at the advertising that is highlighting this form of credit on the Internet, almost all of the advertising slogans can be deleted. There is no credit without a credit check, and there is no credit in the account within 24 hours. Reell looks to take out a loan in Switzerland like this: It has a duration of approximately seven working days from the loan application to the loan approval and payment of the money, depending on how quickly the customer can provide the necessary documents.

Many credit agencies also promise customers that there are loan amounts up to 100,000 USD and other unsustainable promises. Taking out a loan in Switzerland only provides three loan amounts. Once 3,500 USD, which is the most common permit, then 5,000 USD and since July this year, depending on the credit rating, 7,500 USD. The bank does not deviate from these standard rates either.

Nevertheless, these loans have an advantage because they are not entered in the customer’s Credit Bureau. So the house bank learns nothing about a loan and other financial service providers. The bank does not inspect the Credit Bureau either, but if you have serious entries that are also in the official list of debtors, consider a garnishment, foreclosure, insolvency or an affidavit, these customers will also not take out the loan in Switzerland.

The bank does not see the Credit Bureau, but it does see the official list of debtors.

Meet the certain conditions

Meet the certain conditions

If you want to take out a loan in Switzerland, you have to meet certain conditions. If the Credit Bureau is not queried, the bank checks the income in detail. It must have a garnishable share and be above the garnishment exemption limit. An example: A single needs a net income of 1,160 USD to get a 3,500 USD loan. The four-person household is already 2,500 USD. Anything less earned does not receive the loan.

Not only is income important, but also permanent employment. For example, the employment contract must not be limited in time and have no trial period. The contract should exist for at least one year. Unemployed, self-employed, freelancers or recipients of social assistance will not receive this loan in Switzerland. On the one hand, the unemployed and the welfare recipient receive state benefits that cannot be seized. The self-employed and freelancer have a stable income, although some of them have a very good income.

For this clientele, a second borrower could join the contract. However, he must be solvent and have a permanent position. Care must be taken when lending to the unemployed. He can then quickly find a dubious provider who does not provide credit but empties his wallet.

If a credit broker is commissioned, it must be ensured that the credit broker works seriously. No prepayment or prepayment may be requested before the loan approval. Signing insurance contracts is also not serious. The commission due to an agent may only be calculated after the loan approval. The customer should also know that not the loan broker approves the loan, but only a bank. A reputable credit broker can be found by paying attention to whether the strong braand is certified, has been checked by the German Company and how long he has been active in the financial market.

The loan in Switzerland has a term of 40 months, the interest rate is in the double-digit range. Salary statements and bank statements are requested as proof of creditworthiness, as well as a copy of the employment contract.

 

Its possible to have a credit despite of debt.

A loan in spite of debt is always possible if the customer meets the conditions of the bank that are necessary when granting a loan. If you have a sufficiently high income and an impeccable Credit Bureau, you are predestined to receive a loan. In the past, all other liabilities were paid correctly. so nothing stands in the way of a loan. However, there are still a few things to consider.

Find the right loan

Find the right loan

Nowadays, loan seekers find it easy to find the right loan. Banks advertise their loan offers with often excessive advertising promises, which often unsettles the customer. Not so few customers then took out a loan that was far too expensive. Most loan seekers go to the house bank if a loan should be approved despite debt. The bank knows the customer’s finances and can advise him well about the loan in a personal meeting.

However, the customer should not immediately accept the house bank’s loan offer. He only has comparison options if he uses a credit comparison to search for the individual cheap providers. Experience has shown that online banks offer better loans. The customer can also submit his loan application directly via the loan comparison.

It should be noted that, despite the debt, the interest rate is moderate and does not include any processing fees. The interest rate that some providers state is not relevant for all customers. Interest is calculated depending on the creditworthiness, ie if the creditworthiness is good, he will also receive a good interest rate and vice versa. The loan seeker only gets to know his interest rate when he has a personal loan offer.

If the loan is to be rescheduled despite debt, the notice periods of the contracts must be observed. Free special payments or early loan repayments are not always noted in loan contracts. If this happens, the bank can calculate a prepayment penalty. The amount changed in 2010, the bank may only calculate up to 1% of the remaining loan amount. Loan applications before 2010 still have the old provisions.

The compensation was often so high that debt restructuring no longer paid off. Think of a large loan amount with a long term. A cheap loan despite debt not only has to have an acceptable effective interest rate, but also free special repayments.

Anyone looking for a loan despite debt will probably not be able to avoid debt restructuring. The individual loans are combined and combined into one. However, this only pays off if the bottom line is savings. All liabilities should really be counted, including possible installment payments at the mail order company or an overdrafted checking account.

Incidentally, this is often the reason for a loan despite debt, because the overdraft facility can be a debt trap. If it is only ever used and nothing is returned, there is a nice sum of interest that the customer can often no longer look beyond. It is then good to reschedule the overdraft facility into an installment loan or into a loan despite debt, before the bank terminates the overdraft facility, because the finances may have changed negatively.

A possible increase is also often discussed. Only a new loan amount is added to the old one. The loan can then become more expensive and get a longer term. Incidentally, the rates should always be set in terms of income.

The conditions

The conditions

After the customer has found a good provider and wants to change his house bank, he should consider that another comprehensive credit check is pending. To do this, he must have a sufficiently high income, which is above the attachment limit and should have an attachable share of at least 100 USD. To do this, the Credit Bureau must be impeccable and contain no negative entries, and a permanent job is also required.

The Credit Bureau is the tip of the scales when lending. It shows the payment behavior of the customer in the past. If there are negative entries in the Credit Bureau, the bank assumes that the customer may not meet his payment obligations. The loan could then be rejected.

The bad Credit Bureau loan

The bad Credit Bureau loan

If the customer has a bad Credit Bureau but urgently needs financial means, he can apply for a Credit Bureau-free loan. This can be done with a credit broker. Almost all of these loans process loan brokers that the relevant banks are familiar with. But experience has shown that with Credit Bureau-free credit, it is only a bank and it comes from Liechtenstein.

Litebank has been the monopoly for these loans since 2010. The terms and conditions are the same as the Swiss loan that came primarily from Switzerland. However, these loans are limited in their loan amounts. The Credit Bureau does not matter, the credit is not entered.

To do this, the customer should know for himself that he can use another loan in addition to his loan despite the debt. It is worth paying an additional installment of USD 150.00 for a loan of USD 5,000. Can he do that at all? An income / exception plan should be drawn up here. All liabilities and income should be compared. If at least 300.00 USD remain, the loan of 5,000 USD could be applied for.

Many will ask why 300.00 USD the rate is only 150.00 USD. According to experts, only 1/3 of the remaining amount from the budget should be used for a rate. 300.00 USD are still well calculated, namely 1/2. Experts also advise that the customer should always put something aside. If there is a financial bottleneck, the customer could fall back on it and would not have to take out a new loan, which becomes more and more difficult the more loans are serviced.

Conclusion: In general, a loan is always approved despite debt if the customer’s creditworthiness allows it. Otherwise, debt restructuring would have to be sought in order to reduce the rate to be paid.