Do you want to apply for credit but don't know where to start?
This article guides you through the essential steps to prepare and successfully apply for credit.
Before applying for a private credit, it is essential to fully understand your needs and to think about the objectives but also the consequences of your financing.
In fact, specifying your goals and expectations allows you to give meaning to your project.
The reasons for applying for credit are diverse and generally fall into: three categories.
Project financing
Whether it is the purchase of a car, the layout of the home or renovation work, there are many projects and financing needs! The financing must ensure the availability of the necessary funds on time, everything by having a measured and sustainable impact on the budget.
Questions to ask yourself:
- Have you established a detailed budget for your project Who takes into account any ancillary costs (equipment, insurance, capital gains, etc.)?
- Do you have a Reserve for the unexpected ?
- What budget monthly do you want to devote yourself to your project?
- What are Alternatives and risks if your funding request is refused?
The repurchase or consolidation of credit
The repurchase of credit is an ideal opportunity to update your finances and reduce your monthly bills with the number of commitments opened simultaneously with ZEK. It is an operation that aims to restructure commitments, reduce financial burdens, simplify debt management and obtain better financing conditions.
Questions to ask yourself:
Do you know the total amount of your current monthly commitments and financial expenses?
- What is the Average interest rate on your current loans ?
- Have you defined a new global monthly payment that suits you?
- Have you considered To acquire your leased vehicle ?
Cash flow financing
Cash credit generally covers a one-off financial deficit, resulting from one or more unexpected expenses.
He must make it possible to ensure sufficient liquidity to meet short-term expenses and to avoid overdraft or unpaid fees.
Questions to ask yourself:
- Is the financing need temporary or Is your budget regularly negative ?
- Have you established a budget ?
- What precautionary reserve would you like insure or create?
- What is the impact on your finances of a new monthly credit payment ?
What are the minimum criteria for obtaining a private credit?
The conditions for granting loans are defined by the Federal Consumer Credit Act (LCC) but vary between banks. However, the following requirements must be met in order to obtain financing:
- Swiss nationality, holder of a valid B (> 1 year) or C permit
- Age: Be at least 20 years old and at most 68 years old at the time of application
- Employee income/AVS/AI: CHF 3000.- minimum monthly income
- Self-employed income: Accepted from 2 years of activity and justified by fiscal taxation
- Not being unemployed
- Not be the subject of ongoing seizures or acts of asset defect
Calculate your credit capacity
The calculation of your credit capacity will allow you to know the maximum credit amount corresponding to your situation.
Our budget simulator was developed to give you an initial quick estimate.
This can be specified during an interview with your personal advisor.
How do you assess your solvency?
Your creditworthiness data have an important influence on the assessment of your credit application by banks.
If you have already obtained financing in the past and pay your bills regularly, your payment history should be good and additional verification is not necessary.
Why do a ZEK and CRIF solvency analysis?
- In the case of a history of refusal
- If you have had frequent reminders about your credits, leases or credit cards
- If you have repurchased credits without asking for a final statement, because they often remain open to ZEK
Credit analysis is one of the services offered by Credial. It makes it possible to identify possible errors and data that may lead to a refusal. This information concerns you and An audit is always profitable before applying for a loan or mortgage.
In the case of negative data, you can contact the creditors to regularize your situation and have them corrected by CRIF before submitting a new financing request.
How to obtain and interpret a ZEK and CRIF extract?
All you have to do is request it on the ZEK website Or of CRIF.
However, interpreting data can be tedious. Do not hesitate to contact us to ask us your questions and get clarifications.
Can we apply for credit with lawsuits?
The existence of lawsuits can be interpreted as an indicator of financial difficulties and a risk of non-compliance with credit deadlines.
The possibility of obtaining funding through litigation depends on the number, status, and precedence of the lawsuits.
A single lawsuit is not in itself a reason for refusal, but the bank may require settlement before the contract is activated.
In the case of multiple lawsuits, including paid ones, the risk is considered to be higher and some banks may refuse the request. It is always useful to request that the lawsuits be withdrawn after paying for them.
After clarifying the financing objectives, the stage of assessing credit potential and solvency, it is time to gather the documents necessary to put together the file!
This is an important step and the supporting documents required by banks have been increasing in number in recent years.
In fact, they must regularly be justified in court and be in a position to document credit decisions.
What information do I need to provide to apply for a private credit?
You will be asked numerous questions as part of your application in order to determine your credit capacity and the supporting documents to provide. The topics covered will focus on:
- Your family situation, the number and age of your possible children
- Your housing situation (tenant/owner/living with someone, by the employer etc.)
- Your professional situation (employee, self-employed, activity rate)
- Vos revenues professionals, benefits and annuities
- Your professional expenses and means of transport to work
- The cost of your health insurance
- Possible external childcare costs
- Other existing regular expenses (employer loan, others)
What documents are required to get a private credit?
The documents required by banks will be used to justify the information provided.
Recent documents will be required, consult our dedicated page to find out more.
Should you include your spouse in the credit application?
Being married does not imply automatic solidarity between the spouses concerning the repayment of monthly credit payments.
In what cases is it preferable not to integrate your spouse?
- The credit applicant does not want to inform his or her spouse
- The spouse has negative credit codes
In most cases, however, the integration of spouses is positive because it makes it possible to take account of one's income to calculate credit capacity.
Do not hesitate to consult our item to learn more about the best practices to follow to get your financing.
Conclusion
Each credit application file is unique, just like you.
Our objective is to give you all the information you need to give meaning to your project and to make your request independently, taking advantage of some of the knowledge available to bank advisors and credit brokers.
We hope this article has given you a better understanding of how to prepare for your next funding application.
Your Credial advisor is at your disposal to support you in your project and provide you with all the useful information.
