Debt collection, but taking out a loan?

Debt collection appears in credit check

The credit check is the central prerequisite for a loan in Switzerland. The solvency and eligibility for payment are checked.

Open enforcement

Anyone who has one or even several unresolved enforcement cases will find it difficult to obtain a loan in Switzerland. In particular, in the case of multiple unresolved enforcement cases, you can assume that you will be rejected directly by each provider when applying for a loan.

This rejection is then visible in the ZEK for two years.

Before you consider applying for a loan, you should make sure that the outstanding claim of the debt collection has been paid.

Paid debt collection

In the case of a paid debt collection entry within the debt enforcement register, a loan is not excluded. In this case, your chances depend on:

• The number of debt enforcement cases
• How long ago they occurred

Debt collections generally stay visible in the debt collection register for five years. In most cases, an earlier deletion is only possible if the operation was unjustified and you are able to proof this.

But: if you have been subject to repeated debt enforcement cases over the years, your chances of obtaining a loan will be negatively affected longer than that. Enforcements are likely to have been registered with credit monitoring offices as negative events, lowering your credit score.

In addition, if any past debt enforcement was not paid and led to a seizure or loss certificate, then yourwill no longer have the opportunity to take out a loan in Switzerland for a longer period of time.

Loan without credit check

If your credit rating is insufficient to take out a loan or you have outstanding debts, do not be dazzled by supposed credit offers «without a credit check». No lender in Switzerland waives the credit check.

These clues help to distinguish a dubious from a serious offer:

• Every reputable lender in Switzerland is a member of the ZEK. This does not apply for loan brokers.
• Unreliable, supposed «loan providers» charge fees or advances after requesting a mediation or application.
• By law, loan brokers may not charge any fees or costs to the customer.
• On lender side, fees must either be included in the annual percentage rate of charge or are listed in any case in the loan agreement.
• This means that in the case of a loan request via a loan broker or an application to the lender, no money is asked from you before you have received your disbursement. Your first payment happens when you start repaying your contractual monthly instalments.
• If you are in doubt as to whether a provider is reputable, research if you can find helpful information online, be it in news, forums or websites specializing on such topics.

Request loan after paid debt collection

When you have settled the outstanding debt, you can request a loan. However, you still have an increased risk of rejection and have to expect a higher interest rate if you are accepted.

If you place a non-binding inquiry with Credaris, you will receive transparent feedback from us as to whether a loan is possible with your initial situation or if we presume you are likely to expect a rejection. We work with all relevant lenders in Switzerland and can use our experience to assess your chances. This will help you avoid unnecessary rejections.