Scoring and credit in Switzerland
Whatever the bank you are dealing with for your loan application, this one will probably establish a scoring according to your situation. What is this scoring? What impact for your credit request? How to evaluate your scoring? Discover our full explanation.
What is a scoring?
When dealing with credit in Switzerland, a scoring is simply a rating that will be linked to your files. Usually, the bank of financial institution does not comminicate directily this scoring. Actually, the value is used internally only and used to decide if the loan should be granted or not, and if granted, the conditions proposed. Scoring if always calculated automatically. If the value is too low, the bank where you applied will simply give you a refusal.
Evaluate your scoring
The calculation method varies from one bank to another. In all cases, the following will be taken into account, in order of importance:
- Your income: an higher income will give a higher scoring, as well as better loan conditions.
- Your situation: age, marital status, nationality, permit type, … Thus, people under 25 may have less chances to get a redit in Switzerland.
- Your financial history: in Switzerland, every credit request and payment history are recorded. The banks will access those records to calculate your scoring.
Using an automated scoring has many advantages for the banks: automatic processing of applications, equalization of chances for every request, regardless of the person handling the case, improved treatment speed, … However, the human factor is then ignored. In some cases, you could receive a refusal for your loan application because of a low scoring, even though you had elements in your favor that could allow the application to be accepted: additional income, rent paid by your employer, … For that reason, is is best to ask a loan towards a broker instead of the bank directly. Indeed, the broker will help to defend your case with the banks at no extra charge and insure you better chance for your application to be accepted at the best conditions.
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