To get an installment loan, it is not enough to meet the budget criteria as well as conditions of the financial institutions. In the last instance, the scoring decides whether your application will be approved or rejected. Once you submit your completed application to a bank, they will calculate your available monthly margin and check your scoring score. Based on these results, it will be decided whether you will be granted a loan.
Credit scoring - What is it?
In the financial world, this term refers to the credit rating of companies and private individuals. With its help, the lender determines the probability of a default on the part of the borrower and obtains information about the borrower's payment morale. Since the scoring procedure is not standardized in Switzerland, each financial institution uses its own evaluation models to determine creditworthiness. Banking companies that want to save themselves the effort can also obtain the relevant debt collection information from the cantonal debt collection offices for a fee. Many creditors turn to the credit agency CRIF. This company not only registers payment histories, but also holds ZEK information such as payment arrears, promissory notes as well as open credits.
What points are taken into account for scoring?
In addition to your credit history, the following are the main elements to consider:
- The older the applicant is, the more points they score.
- Married people get more scoring points than single people.
- A higher budget margin results in better credit terms for the customer.
- Inquiries at the ZEK: Of particular interest are the number of loan rejections as well as current and outstanding payments, which are registered by a code at the central office.
- Those who remain professionally loyal to a company for many years are rewarded for this in terms of their score.
- The longer you have been registered at a residential address, the better your result will be.
These contract conditions decide the credit scoring?
- Amount of interest you have to pay as a borrower
- Approval or rejection of the request, regardless of whether or not you have met the budget criteria.
- Limitation of the amount of credit granted, even in the event of a positive budget calculation
Increase your loan chances with bestfinance.ch
In order for your credit application to be approved by your financial institution, you should inform yourself comprehensively about the scoring procedure of your bank beforehand. Thanks to our good relationships, which we maintain with the various financial institutions, we know the scoring criteria of the respective financial institutions very well. This leads to the fact that our success rate in the field of credit inquiries is above average. If you would like to know more about this topic, please contact bestfinance.ch.
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