Posted on

Consumer Credit Act: An overview of the most important things

Consumer Credit Act

Does the Consumer Credit Act protect against over-indebtedness?

The consumer credit law is designed to protect consumers from possible over-indebtedness. It also protects banks and credit institutions from possible default on their borrowers. Important: The consumer credit law (KKG) regulates the commercial granting of loans!

Consumer Credit Act

Then the consumer credit law applies

The consumer credit law applies to different types of contracts, all of which are subject to the same conditions:

    • for private use only
    • Loan amounts between 500 and 80,000 Swiss francs
    • Loan term for more than three months
    • Credit with no collateral deposited

The consumer credit law includes, for example, personal or consumer loans, credit cards, overdrafts and many other types of loans. But even if the KKG does not apply, certain laws apply. The right of withdrawal may cease and the borrower may not decide against the loan within the next 14 days after the loan has been approved.

The aim of the consumer credit law is to define rights and obligations and thus keep risks and payment defaults as low as possible. It includes the following points:

    • Advertising bans for so-called instant loans and other aggressive offers

The credit industry has defined what aggressive promotions are. These include instant loans that are said to be paid out within a few minutes. You are not serious!

    • Mandatory examination of the applicant's creditworthiness and creditworthiness

The borrower must be able to repay a loan within 36 months, but must also be able to meet his minimum living requirements. In order to obtain the relevant information, the central office for credit information or one of the various credit bureaus is interviewed.

    • Compliance with the maximum interest rate

The maximum interest rates are currently capped at 10 percent by law.

    • Regulations for early repayment of the loan

Consumer loans may be repaid before the credit expires. Interest for the unused credit period will then be waived.

    • Cancellation rights of borrowers

Borrowers have the right to change their minds. The loan is therefore only paid out on the 15th day after the positive decision in order to preserve the 14-day right of withdrawal.

    • Lenders' reporting requirements for approved loans

Every credit has to be reported! The information point for consumer credit must include the borrower's personal details, the number of installments, the start and end of the contract, repayment rates and any late payments.

Conclusion: The consumer credit law protects consumers and banks

The consumer credit law is intended to protect both consumers from over-indebtedness and banks from payment defaults. Various data must be obtained from the bank so that a loan can be legally granted. However, if the credit does not fall under the definition of the consumer credit law, other laws apply. This can include, for example, that the cancellation period does not apply and that once a loan has been committed, it must also be repaid as agreed.

You are planning to take out a loan and want to compare the personal loan offers and for that a loan comparison use?

Source: comparis.ch

divide

Credit comparison Switzerland

Calculate credit and compare all providers

Compare all loan providers now

These articles might also interest you:

Facebook Twitter Instagram

Imprint - data protection declaration

Posted on

How does the credit rating affect my loan application

How does the credit rating affect my loan application

How does the credit rating affect my loan application?

As a rule, creditworthiness is only associated with the granting of loans. It also plays a role in online payments! Banks only decide whether a loan application is approved or rejected after the credit rating has been checked.

How does the credit rating affect my loan application

Wrong assumption: bad payment behavior has no consequences

Bad payment behavior will never be without consequences, that much is clear. It can be assumed that around half of all Swiss people believe that a warning can be paid and that there are no further consequences. But far from it! It is rather the case that a delay in payment is registered directly and has an impact on the overall creditworthiness. Of course, such entries have a particularly negative effect when it comes to granting loans. These are rejected or only approved in a low amount if poor payment behavior has been certified.

The following two terms are used to assess creditworthiness:

    • credit rating
      The creditworthiness provides information about whether the customer can pay. If his current budget allows all income and expenses that are compared to the fact that the remaining amount can be used to repay a loan, this should be assessed positively. The possible loan amount is also based on this. Important: In order for the creditworthiness to be checked in the first place, the applicant must have a freely disposable income, be of legal age and be able to repay the loan in 36 months.
    • credit-worthiness
      Here the probability is calculated whether the customer will repay the loan. It is about its trustworthiness when it comes to payments, using open liabilities and even debt enforcement that has already been completed. In addition, age, nationality, place of residence and the frequency of changing jobs also play a role. Banks get the necessary data from creditworthiness databases, debt enforcement offices and the central office for credit information.

Intrum Justitia, Bisnode, CRIF and Creditreform are the major credit bureaus in Switzerland, but they are not only asked for information when granting loans. Inquiries are also made here when it comes to online orders and payment in installments or by invoice. Even the wish for a new cell phone contract is registered here! The creditworthiness is also negatively influenced by slow payments, it does not even have to be reminded. Such a rating is intended to protect the borrower from over-indebtedness. At the same time, the bank naturally wants to protect itself and protect it from default.

How creditworthiness influences lending

In summary, it can be stated that the creditworthiness is significantly involved in the decision on a loan. Credit approval or refusal depend on it, with all banks applying different rules for assessing the applicant's creditworthiness. 

They also do not allow themselves to be looked into the cards and do not publish such regulations. Tip: Before you make a loan application, it makes sense to get an overview of your own creditworthiness so that no rejected loan application further deteriorates the creditworthiness.

If you have one Compare personal loan you can do it here without applying for a loan!

Source: comparis.ch

divide

Credit comparison Switzerland

Calculate credit and compare all providers

Compare all loan providers now

These articles might also interest you:

Facebook Twitter Instagram

Imprint - data protection declaration

Posted on

Personal loan savings potential: Why a redemption can be worthwhile

Personal loan savings potential: Why a redemption can be worthwhile

Personal loan savings potential: Why a redemption can be worthwhile

The interest due on personal loans is currently at an all-time low. Interest rates are currently just 4.5 percent, provided that they have a corresponding credit rating. For borrowers, this means that paying off their existing loan can be worthwhile.

Personal loan savings potential: Why a redemption can be worthwhile

Switching providers is worthwhile

A precise comparison of the conditions is not only worthwhile when you take out a new loan. At the moment, interest rates are so low that it can also make sense to compare an existing loan with other offers and that it is worth changing the loan provider. If a new loan agreement can be concluded at lower interest rates, it is worthwhile in any case, especially with outstanding loan amounts and with longer terms.

The consumer credit law offers the opportunity to change providers, because it is said here that personal loans can be redeemed at any time and without giving specific reasons. No additional fees may apply. The scheme allows loans to be redeemed early and transferred to another lender. The savings potential is large and depends primarily on the interest rate and the remaining credit amount.

It makes sense to check beforehand

Please do not prematurely replace and change providers, but subject your project to a thorough examination. In some cases, the providers lure with very low interest rates, but only offer so-called shop window prices. This means that when you take a closer look, the interest rates are significantly higher. Independent consultants can assess whether it is just a tempting offer or whether the offer is realistic and serious.

Also remember the entry at the central office for credit information. Credit applications are reported and registered there, rejected loan applications are saved for two years and can be viewed by all banks. For this reason too, the previous comparison is important! It is best to do the following:

    • Define the remaining loan amount and the term of the existing loan as well as the current interest rate to be paid.
    • Find various offers from reputable credit institutions that are suitable for you.
    • Consult an independent advisor or try to compare yourself. What would be the interest you would have to pay for the loan amount that is currently to be repaid?
    • If the evaluation is positive: approach the new bank and submit a loan application.

You no longer have to worry about repaying the old loan, as a rule the new bank will take care of that. It cancels the existing loan and replaces the previous bank. With the loan amount that you receive from the new bank, the existing loan is replaced in one fell swoop. Then you pay the agreed installments to the new bank.

Conclusion on the loan repayment

Replacing the loan can make sense if the existing loan turns out to be too expensive and there are offers with significantly lower interest rates. An independent advisor can help you with a comparison and let you know whether it is worth repaying the old loan. Again, you can have one Use credit comparison and decide whether a change makes sense.

divide

Credit comparison Switzerland

Calculate credit and compare all providers

Compare all loan providers now

These articles might also interest you:

Facebook Twitter Instagram

Imprint - data protection declaration

Posted on

Personal loan: 5 tips for borrowing

Personal loan: 5 tips for borrowing

Personal loan: 5 tips for borrowing

With a personal loan, short-term payment bottlenecks can be bridged and purchases made in the range of 500 to 80,000 Swiss francs. The personal loan, also known as a small or consumer loan, should not be taken up prematurely. The following tips also help you keep your finances under control.

Personal loan: 5 tips for borrowing

1. Determine creditworthiness yourself

First of all, it is advisable to find out about a possible loan amount. On the one hand, a budget is drawn up for this, in which all income and expenditure are included. A buffer for unforeseen expenses should also be included. The amount that remains at the end can be used for a loan or for repayment.

In the process, you should also find out about your own creditworthiness. Have you already submitted a loan application that has been rejected? Then this rejection will be saved for around two years at the central office for credit information, where all lenders can view it. The credit rating determines the amount of the loan, if it is granted at all, and the interest rate. The worse the credit rating, the higher the interest rate will be.

2. Pay attention to serious offers

Unfortunately, the financial market is full of dubious offers that appear lucrative at first glance. The instant loan that is paid out in a few minutes? Sounds good, but it's not. It is a fraud, and by the way, even advertising for such an instant loan is prohibited by law.

Dubious providers often advertise with low interest rates and high amounts of credit, with a settlement without a credit check and with the fact that they can accelerate lending if an advance payment is made. Serious providers do not make such promises!

3. Don't finance short-lived products with credit

Important rule of thumb: The term of the loan should in any case be shorter than the life of the product financed with it. It is therefore not recommended to finance a vacation with a personal loan, for example, because here you are already caught up in everyday life if you still have to pay off the loan installments. Cars, renovations or new furnishings are more suitable for personal loan financing.

4. Keep an eye on costs

Of course, the personal loan is not in vain and costs fees that the borrower demands in the form of interest. The lower the borrower's credit rating, the higher the interest rate. A maximum of 10 percent is possible as an interest rate, here the legislator has capped the interest rate.

5. Better bet on personal loans

The personal loan has several advantages over other forms of credit. On the one hand, the aforementioned maximum interest applies. On the other hand, financed goods and products belong directly to the buyer, while, for example, in the case of a purchase in installments, the goods remain the property of the seller until full payment. The personal loan protects the borrower against over-indebtedness because it is only granted after a thorough credit check. If the creditworthiness is negatively assessed, a reputable lender decides against lending.

Would you like to compare the conditions for a personal loan? Then you are with our credit comparison precisely!

divide

Credit comparison Switzerland

Calculate credit and compare all providers

Compare all loan providers now

These articles might also interest you:

Facebook Twitter Instagram

Imprint - data protection declaration

Posted on

Personal loan: An overview of the most important things

Personal loan: An overview of the most important things

Personal loan: An overview of the most important things

The personal loan is a good option if a financial bottleneck is to be bridged. Whether a renovation is planned, a new car is to be bought or whether the long-awaited vacation becomes more expensive than expected: With the personal loan, such wishes can be fulfilled flexibly.

Personal loan: An overview of the most important things

That says the consumer credit law on personal loans

The KKG (consumer credit law) also describes the personal loan as a small loan, which already says something about its definition. Because this is an interest-bearing loan that can be granted between 500 and 80,000 Swiss francs and has a term of at least three months. The personal loan is not secured by special collateral and may only be used for private purposes. As a result, companies cannot apply for a personal loan. There are two types of these small or consumer loans:

    • Offline loans
      The borrower applies for the loan in the bank branch.
    • Online loans
      The borrower uses an offer from a direct bank and takes out the loan online.

Many banks now offer both types of loans, and online loans are increasingly being processed through crowdlending.

The personal loan is suitable for this

The personal loan has advantages and disadvantages that must be assessed individually. It is important that the amount of the loan fits your own budget and the options for repayment. The personal loan is particularly suitable if you want to buy a long-lasting product, such as furniture or a new car. In addition, the loan is used to bridge a short-term payment bottleneck, which means that it must be clear that the repayment of the loan must be on a secure footing.

With a personal loan, interest costs can also be reduced if an existing loan is rescheduled. Furthermore, it is often used to finance training and further education that cannot be paid for otherwise.

However, the personal loan is not suitable in the following cases:

    • Acquisition of short-lived products
    • Investment in products if there is permanent poor solvency
    • Purchase of very expensive products and goods or for house building

A question of solvency

Particularly important: the granting of a personal loan depends on how good the credit applicant's credit rating is. This means that their solvency is checked and assessed so that they themselves are protected against the consequences of overindebtedness and so that the lender is also safe from default. The loan is only granted if the creditworthiness is rated as sufficiently good.

In order to be able to check the creditworthiness, the applicant not only submits his loan application, but also evidence of any risk factors. In addition, nationality and residence status, age and frequency of job changes are checked. Loans are only granted if the applicant is of legal age and has a regular income. Furthermore, the information from the creditworthiness databases is important. Open debt enforcement exclude the granting of a personal loan as a rule, completed debt enforcements at least reduce the creditworthiness.

The creditworthiness is also relevant for determining the interest rate: the poorer the creditworthiness, the higher the interest rate. Legally, the interest rate is capped at 10 percent. Certain risk factors therefore ensure that the interest rate becomes higher, even if the low interest rate phase is still raved about.

If you are interested in such a loan, you can click here Call up credit comparison.  

divide

Credit comparison Switzerland

Calculate credit and compare all providers

Compare all loan providers now

These articles might also interest you:

Facebook Twitter Instagram

Imprint - data protection declaration

Posted on

Crowdlending: This is how loans work without banks

Crowdlending: This is how loans work without banks

Private individual as lender: quick lending with minimal risk?

The Internet plays an essential role in this form of lending. In crowdlending, also known as P2P (peer-to-peer), several individuals grant loans to another individual or to a company. There are various online marketplaces that take on an intermediary position, so to speak. For loan seekers, there is an opportunity to get a loan despite poor creditworthiness, while lenders can see this as a savings investment.

Crowdlending: This is how loans work without banks

This is how crowdlending works

Both sides register on the corresponding internet platform, whereby there is a different registration mask for loan seekers than for lenders. The loan seeker presents his project and the future lenders decide whether they want to invest in it. If there are enough participants for the investment, the contributions that everyone makes are combined into a loan amount. Of course, the operator of the online marketplace also receives a certain amount as a fee, because only then can the offer work.

Applicants have to provide various information about their situation, on the one hand the financial, on the other hand the personal life situation is examined. This should make it possible to assess the applicant's creditworthiness. A type of rating is carried out, which shows the risk of a credit default. After all, investors don't want to have to give up their money and profits! In addition, the individual credit default risk is important for the amount of the interest rate. The higher the risk, the higher it is. If the credit decision is positive, the project is presented to potential investors who only need to register to participate. Their identity is checked, after which it is possible to invest on the platform.

Advantages and disadvantages of crowdlending

Crowdlending has many advantages for both parties involved:

    • fast lending and transparent process
    • Lending also possible with poor creditworthiness
    • Lending also possible with past debt collection
    • Attractive returns possible for investors
    • Risk minimization thanks to an internal rating
    • Supervision of the project is carried out by platform operators

Nevertheless, there are of course disadvantages. These consist of the following points:

    • Loss of investment if the borrower is unable to pay
    • possible defaults due to late payments possible
    • lower return possible due to early loan repayment
    • high rejection rate for loan seekers
    • high interest charges with poor creditworthiness
    • sometimes long waiting times for a decision

Disadvantages are particularly evident in a direct comparison with a personal loan. The amount of the loan amount becomes clear very quickly with the latter, but with crowdlending it may be that the loan cannot be obtained in the desired amount because there are not enough investors. However, the search for investors takes some time, so considerable waiting times must be expected. Who needs a loan quickly is rarely well advised with crowdlending.

Important: The loans that are granted in crowdlending are not subject to the consumer credit law and its special protection. This means that nobody is protected against over-indebtedness here. In addition, higher loans are difficult to obtain, and the risk is usually too great to grant a large sum.

Conclusion

Crowdlending is therefore particularly worthwhile for those who are looking for an alternative to traditional bank loans and want to borrow money in an uncomplicated manner, although the loan amounts should not be too high.
If you want to compare crowdlending with personal loans, you've come to ours loan comparison precisely!

Source: comparis.ch

divide

Credit comparison Switzerland

Calculate credit and compare all providers

Compare all loan providers now

These articles might also interest you:

Facebook Twitter Instagram

Imprint - data protection declaration

Posted on

Can I take out a personal loan despite being managed?

Can I take out a personal loan despite the debt enforcement process?

Take out personal loans: credit check with obstacles

In general, banks in Switzerland are obliged to subject every loan applicant to a credit check. This is intended to protect the bank from a possible loss, on the one hand, and to protect the borrower from over-indebtedness, on the other. In addition to the actual creditworthiness, the creditworthiness is also checked.

Can I take out a personal loan despite the debt enforcement process?

How is the credit rating checked?

As part of the credit check, an attempt is made to determine whether the applicant will be able to meet his payment obligations. That means your reliability is checked here! For this purpose, the credit institutions contact the following information points, among others:

In addition, the potential lenders contact you directly and require the submission of various documents such as wage statements, rental contracts, maintenance obligations, etc.

Problems with ongoing debt collection

With ongoing debt collection, it becomes difficult to get a credit rating. In Switzerland, it is legally regulated so that everyone can collect a debt without even needing proof. An ongoing debt enforcement procedure therefore usually leads to the loan application being rejected.
Important point: Many loan providers advertise that they would grant loans despite debt collection. These are dubious offers that you should stay away from! Such promises appear in particular in the case of alleged instant loans, which, however, are not only little confidence-building, but are simply illegal.

Creditworthiness continues to be poor

Even if it may be unfair, the creditworthiness remains impaired even after the debt collection has been completed. The reason is that the credit providers assume that they will continue to have poor solvency in the future and that this will significantly increase their risk. But you want to receive your money on time!

It cannot be said in general whether and how a lender evaluates the creditworthiness of the applicant who has already had a debt collection. The rules for this are different and sometimes very strict, but there is no credit institution that gives an insight into its assessment practices. If a loan is granted, which is generally not excluded, the interest rate will be significantly higher in most cases.

Tip: Submit multiple loan applications to different banks at the same time. Rejected applications are stored at the central office for credit information and are visible to all banks wishing to inspect them for two years. If an application is rejected while a second bank is checking the creditworthiness, the bank has no insight into the rejection and does not automatically rate the credit rating worse.

Tips for applicants

If you want to apply for a loan, you should at least have basic information about your own credit rating. Therefore, contact the usual credit bureaus:

    • Bisnode
    • Creditreform
    • CRIF
    • Intrum Justitia
    • etc.

Here it is possible to find out about your own creditworthiness in order not to be completely surprised later because certain entries can be found there. As a basic principle, you can assume that the creditworthiness after completing the debt collection and if there are no other occurrences is generally not that bad, and that the approval of a loan application is therefore within reason.

You are welcome to view the offers in our privateloan comparison and find the best deals on taking out your own loan.

Source: comparis.ch

divide

Express debt collection extract

Order the debt enforcement extract quickly and easily

Order debt extract in 2 minutes

These articles might also interest you:

Facebook Twitter Instagram

Imprint - data protection declaration

Posted on

Personal loan and taxes: The most important things at a glance

Personal loan and taxes: The most important things at a glance

Personal loan and taxes: The most important things at a glance

Deducting taxes is common for companies, and they can reduce this profit. But what about the personal loan? The deduction of interest on debt is very possible in the context of the tax return.

Personal loan and taxes: The most important things at a glance

Deduct interest on debt from tax?

The debt interest paid over the year can be deducted from taxable income by private individuals. This applies to both cantonal income tax and federal tax, with an allowance of 50,000 Swiss francs. The interest may be deducted from the private assets up to the amount of the gross income. This regulation also relates to the interest on debt that accrues from a personal loan or is payable for it. The allowance is usually sufficient to fully deduct the interest.

The deduction of debt interest is actually worth it! If, for example, a personal loan of CHF 30,000 was taken out, which runs for 36 months, the interest can add up to around CHF 2,000 in the first year. If the tax rate is ten percent, tax savings of CHF 200 may be possible.

What can be claimed?

As a borrower, you not only transfer the interest to the lender's account, but also the repayment rate plus the interest. The interest on the debt is deductible, but the portion of the repayment is not. This means that you can only apply part of the interest on your tax return and nothing beyond that. This reduces the deductible portion each year because interest is always calculated on the remaining loan amount. However, the repayment share increases. If you compare the possible deductible amounts shortly before the end of the loan repayment and at the start of the repayment, you will also see considerable differences in the amount of the deduction amounts.

Interest is deducted as follows:

    • In January you will receive a certificate from the lender of the amount of the interest payments made.
    • You enter the details of the deductible interest on the debt and the outstanding debt in the corresponding form for the? Private debt? on.
    • You transfer the sum of all debt interest from personal loans into the main form.
    • You attach a copy of the individual certificates of interest to the tax return.

If you do not automatically receive a certificate of the interest you have paid, you can also request it directly from the lender.

Deductible also for private loans

If a personal loan is used by relatives or friends, interest can of course also be agreed on the loan amount. These are deductible, although the deductibility even applies to other forms of credit (for example, debts from credit card payments). Important: You must not claim leasing transactions for tax purposes, because leasing is legally seen as a rent and not as a loan. If you are planning a new purchase like a car, you should therefore use the loan as a financing option as a lease.

Tip: Include copies of the private loan agreement and receipts from the bank on the payments made, as you will not receive a current interest certificate for private loans.

As a summary, it can be stated

Debt interest on private loans is deductible and can reduce taxes.
Would you like to be better informed? Here you can see the offers for Use credit comparison and find out about other topics!

divide

Credit comparison Switzerland

Calculate credit and compare all providers

Compare all loan providers now

These articles might also interest you:

Facebook Twitter Instagram

Imprint - data protection declaration

Posted on

Personal loan: How to recognize dubious credit providers

Personal loan: How to recognize dubious credit providers

Recognizing fraud: This is how loan sharks pull the money out of customers' pockets

Unfortunately, dubious credit providers are all too common. But a few points indicate that you are dealing with a provider who wants to pull the money out of your pocket with the loan granted.

Personal loan: How to recognize dubious credit providers

Not a member of the Central Credit Information Office

The consumer credit information office (IKO) records the consumer loans granted in Switzerland, and since April 2019 so-called peer-to-peer loans have also been covered by the consumer credit law and must be managed accordingly. Reputable providers are members of the central office for credit information, where all loans are recorded. If a person makes a new loan application, a credit check is carried out, for which it is important to have a look at the ZEK lists. If a bank violates this rule, this can have legal consequences. If you want to grant loans without a credit check, you are not serious.

Get a loan despite debt enforcement

Untrustworthy providers do not keep the borrowers in mind. Therefore, you also advertise Credit despite debt enforcement and thus target people who are in financial need. A reputable provider will always want to avoid over-indebtedness of the borrowers and always checks the applicants' creditworthiness. It applies to both current and completed debt enforcement that they can represent an exclusion criterion. The creditworthiness is always negatively influenced. Anyone who claims otherwise as a credit provider is not serious!

The fee trap

The law stipulates that all fees associated with lending must be included in the APR. However, the consumer credit law stipulates that fees for reminders, prepayment fees or costs for address research may be passed on to the borrower. Not more! Only dubious providers charge additional fees.

The instant credit trap

An instant loan is supposed to provide quick help in financial emergencies. But that is not allowed! Offers for instant or urgent loans almost always come from dubious providers, especially since the term? Instant loan? must not be used. The consumer credit law requires a waiting period of 14 days before a loan can be paid out. Instant loans, on the other hand, advertise with the payment within a few minutes. Exceptions only apply to loans that are not covered by the consumer credit law (for example, for amounts higher than 80,000 Swiss francs or for a shorter term than three months).

Debt restructuring as a point of contact

Debtors are advisors and not credit institutions or financial service providers, although there are of course serious providers among them. A financial restructuring does not mean a loan, but only the processing of debts. The money for this is paid to the company in question, which works for a fee.

In summary: How to recognize our loan providers

The following list summarizes the most important tips:

    • Check the warning list of the Swiss Financial Market Authority for the name of the provider.
    • Check to see if it is a loan provider at all and not just a debt redeveloper.
    • Check the advertising for its terms (instant credit, short-term payment, etc.) and pay attention to the language choice of the provider.
    • Check the offer for hidden fees.
    • Go to debt counseling instead of credit intermediary if you are in financial difficulties.
    • Check whether the provider is a ZEK member.
    • Check where the company is based. Don't just look for the abbreviation? Ch? in the web address, because it can still be a mailbox company.

Are you looking for a reputable personal loan? You can choose the personal loan you want in Search credit comparison and always rely on reputable providers!

Source: comparis.ch

divide

Credit comparison Switzerland

Calculate credit and compare all providers

Compare all loan providers now

These articles might also interest you:

Facebook Twitter Instagram

Imprint - data protection declaration

Posted on

Untrustworthy loan providers: the trick with the instant loan

Dubious loan providers

Instant Loans: Questionable Solution to Financial Problems

An instant loan sounds tempting: it is issued within a very short time and therefore also bears the nickname? Express loan ?. However, there is a mesh behind the promised rush loans, which have not been allowed to be advertised in Switzerland since 2016.

Dubious loan providers

Criticism of the instant loan

The promotion of instant loans promised a lot, the reality could hold little. According to the credit industry's self-regulation agreement, the advertisement associated with such a loan offer that the loan would be granted very quickly but without a detailed examination of the applicant's creditworthiness. The advertising was classified as misleading. On top of that, a normal consumer loan is loud Consumer Credit Act must be between 500 and 80,000 Swiss francs, it must also be issued by credit institutions or financial service providers and have a term of at least three months.

In Switzerland, however, instant loans always turn out to be tempting offers that banks only want to use to catch customers. The providers are often companies with dubious focus, they are not checked or licensed. In addition, it was very often advertised with an instant loan, although it could not really be granted.

Recognize dubious offers

Providers of instant loans often sound full-bodied that they could grant a loan within a few minutes. But there are a few points where you can tell whether it is a serious offer or not:

    • Pay attention to terminology: instant or instant loans are always dubious
    • To promise that the money will be in the account after a few minutes
    • strikingly bad language, spelling and grammatical errors in the offers
    • Address outside Switzerland or not given at all
    • missing references to debt advice or central office for credit information
    • ?Error? in your own advertising: warning of dubious providers (but these providers are managed themselves on the sites mentioned) or notice that no loans are being granted, but other sites are promoting an instant loan

Advance loan applications possible

Of course, processing loan applications can also be particularly quick. All professional service providers have the option of preferring credit checks, making the processing of applications much faster. The applicant himself can also help to speed up the processing of his application. For example, it is possible to submit the necessary documents with the application so that no additional requests are necessary. The banks themselves decide on the duration of the processing and, if the applicant has given a positive check, can pay out the requested money immediately after a waiting period.

It doesn't have to be an instant loan

An instant loan with all its (empty) promises certainly sounds tempting, but it's not legal. In Switzerland, however, you will still receive a consumer loan within 14 days. With certified providers, you can be sure that everything is going well and that the agreed conditions are actually being met. In addition, you can exercise your 14-day right of withdrawal for a regular loan and, together with the waiting period, you have enough opportunity to rethink any major purchases that you have suddenly considered.

Conclusion

Never prematurely close an apparently lucrative loan offer, because an instant loan is illegal in any case! There are many other alternatives that are much more sensible and, above all, legally secure. Now the offer for credit comparison use and save money!

Source: comparis.ch

divide

Credit comparison Switzerland

Calculate credit and compare all providers

Compare all loan providers now

These articles might also interest you:

Facebook Twitter Instagram

Imprint - data protection declaration