Many who are considering taking out a loan are faced with the same question: What does it take for a loan application to be approved? If you follow certain basic rules, nothing stands in the way of success. We’ll show you which points to take to heart here – as a video or in text form.
A loan application will not be issued without a thorough entrance examination. Future loan investors want to know exactly who is behind the application and how reliably they can estimate the full repayment of their loan. Ultimately, lenders spend a lot of money without having any direct security. In order to nevertheless achieve a certain degree of security, applicants are subjected to a budget check and a credit check.
Budget check & credit check
As part of the budget review, the options available to the borrower to settle the monthly installment payment are examined. For this purpose, the monthly income is weighed against the monthly expenses. This review is prescribed by the Swiss Consumer Credit Act and serves to prevent possible over-indebtedness.
The credit check checks the borrower’s intention to make contractually guaranteed loan repayments. For this, mathematical probability models are used, which evaluate the habits in the past. We also consult current debt enforcement information and credit bureaus who have information on payment methods in the past.
Good preparation significantly increases the chances of success
The better the results of the budget and credit check, the higher the chances of a successful loan request. Good preparation can be crucial here. There are a number of points that, if observed, can have a positive impact on the loan application process and its results.
The total income should be clearly documented. Written wage statements from the employer are used for this. The same applies to any additional earnings. Keep these documents handy.
Sum up all existing income in your loan application. Married applicants or applicants living in a registered partnership can also specify the other person’s income, increasing the countable income without having to include the second person in the contract.
Reliable debt repayment also improves your chance of getting a personal loan. Pay your financial liabilities, such as your credit card bill, reliably. Also ask the issuer of the credit or payment card that open arrears codes in the central credit databases will be deleted after you have met your obligations.
The right time
Make the loan request while you are in a permanent employment relationship and not after giving notice of termination.
Loan providers usually have the claim that borrowers have been in permanent employment for at least three months. Therefore, only submit your loan application after the trial period has ended. If this ends three months ago, request confirmation from your employer.
All negative credit inquiries have a negative impact on further inquiries, also from other credit providers. In the event of a negative answer, therefore, wait at least 6 months before placing another credit request.
Credit providers reward consistency in credit checks. This is also shown by the time spent at the current place of residence. For immigrants, the total length of stay in Switzerland is also an important factor for the success of a loan application.
The more contact options you offer, the better. The lender appreciates receiving your personal and business contact information from you. Of course, this includes telephone and mobile phone numbers as well as email addresses.
Loans that have already been paid off have a positive effect on your creditworthiness. A reasonable use of money in the past is viewed positively, but a rather negligent use is viewed very negatively.
In addition, a reputable loan provider is required. Make inquiries before wasting time and possibly money on the wrong partner. Your credit rating will otherwise suffer unnecessarily from rejected loan applications.