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?
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
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.