The credit experts at Fine Bank have put together the hit parade for most credit mistakes for you. Read for yourself what the most common misconceptions about loans in Switzerland are:
Credit interest in the advertising and in comparison tables apply to all customers
It is true: In advertising and comparison services, “from” interest is advertised. Even if an interest margin is given, the calculation examples are usually calculated with the lowest interest. In reality, the credit banks choose their customers based on their creditworthiness and budget and only assign the current interest rate after careful examination. The banks that advertise the lowest interest rates also reject most inquiries. The average annual interest rate for personal loans in Switzerland is higher than 10%, which is significantly higher than the widespread advertising offers.
I only get the best loan directly from the credit banks
It is true that the well-known credit banks do considerable advertising to find new customers. But they also reject a large part of the credit inquiries. The banks with the lower annual interest rates in advertising tend to reject the most customers. All rejections are noted on the ZEK and deteriorate your credit rating. An application via a credit expert like Fine Bank is easier and more promising. With just one application, the conditions are compared and the risk of damaging cancellations is kept to a minimum for you.
Credit cards are cheaper than personal loans
Correct: With the installment facility of your credit card, you can easily get credit if you can’t or don’t want to pay your card bill. Most card companies charge an annual interest rate of more than 14%, and this often from the date of purchase. Up to the payment date of the invoice, that’s quickly 2 months, which you have to pay interest on. Therefore, pay attention to the small print in the charge tables of your credit card and avoid unwanted surprises.
A loan without ZEK is possible
It is true that the central office for credit information (ZEK) stores data on all current loans. Negative information is also kept for certain periods. The legislator forces all Swiss credit banks to take the information on the ZEK into account for the credit check. This is to prevent the applicant from becoming over-indebted. Providers who hold out the prospect of loans without a ZEK avoid this obligation and cannot be regarded as serious. It also happens time and time again that foreign suppliers “lure” customers in Switzerland with this promise. Be very careful when you see this promise.
I can use the credit to pay for my debt enforcement
The right thing is: We at Fine Bank are not aware of any credit banks in Switzerland, which loans are granted so that customers can pay their company. The credit banks insist that all outstanding debt enforcements are paid by the applicant before a loan is paid out. If there are many or large claims outstanding at the debt enforcement office, the credit bank will refuse to grant the loan in full. Therefore, always pay your bills on time and plan a few months in advance if you expect a financial bottleneck.
I have no flexibility with the repayment with a loan
It is true that the Swiss Consumer Credit Act (KKG) gives borrowers considerable flexibility. After signing the loan agreement, the customer can withdraw from the loan agreement within 14 days at no cost. The credit banks may also only invoice the effective interest on the amount owed. In this way, the credit customer can pay more than the agreed monthly installments at any time, thereby saving considerable interest costs. Or they can settle their full remaining debt at any time without being charged early repayment fees, as is common with mortgages, for example.