While in Germany every borrowing – there are always exceptions in the pawnshop and often with employer loans – is linked to a Credit Bureau request, Swiss banks grant their loans without being able to make an inquiry to the protection community, as they are not members there. Swiss banks, however, use other methods to protect themselves against bad debts, but their loans are still accessible to people with negative Credit Bureau characteristics.
Who are Swiss loans without Credit Bureau suitable for?
Most Swiss financial institutions only grant loans without Credit Bureau information from Switzerland to employees and civil servants. Self-employed and freelancers, like pensioners and pensioners, only receive a Credit Bureau-free loan from a few Swiss banks. In addition, Swiss banks require a significantly higher minimum wage than most German credit institutions for lending without Credit Bureau information.
Another security of the loans without Credit Bureau information from Switzerland is the low loan amount, which amounts to a maximum of three to five thousand USD depending on the bank. Swiss banks rarely grant higher loans. Swiss banks also limit the age of the borrower and reject applicants if they are not citizens of their country of residence.
The submission of several loan applications to different banks in Switzerland fails because the borrowing is reported to the ZEK. This is a Swiss institution comparable to Credit Bureau.
Most people apply for Swiss loans without Credit Bureau on the basis of existing negative entries with the German credit protection, which often lead to rejections of the applications made to German lenders. A few customers of the Swiss banks, despite a positive Credit Bureau wish that their loan taken out will not be registered there.
The process of granting credit from Switzerland
The banks pay the loans without Credit Bureau information from Switzerland to a German bank account and in USD, so there is no currency risk for the borrower. A German bank account of the Swiss bank paying out the loan is also available for repayment, so that there are no bank charges for international payments.
Despite the high minimum requirements for borrowers’ income, Swiss loans are associated with an increased risk of default for the bank due to the failure to submit a Credit Bureau request. This risk is expressed in the interest rates payable on loans from Switzerland, which are slightly higher than the average German interest rate.
Of course, Swiss banks also state the effective annual interest rate when they advertise their loan offers in German media. Since various banks in Switzerland offer loans without Credit Bureau in Germany, borrowers can find the cheapest loan by comparing their offers.