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
