Answers to
All Your Credit Questions

Your credit history abroad may be considered when applying for a loan in Switzerland as a cross-border worker. To better understand how your international credit history might impact your application, we recommend consulting with our team for personalized advice.

To ensure that your credits have been fully settled, the simplest way is to verify this with the Credit Information Center (ZEK). This step is important because a credit contract that has not been entirely repaid might still carry a balance. Such a balance could be claimed by the lender even after several years, potentially leading to financial surprises.

Additionally, an unresolved balance could generate negative solvency codes in the ZEK database, which might harm your credit score and your ability to secure future financing. It can also distort your overall credit commitments as recorded in the ZEK, affecting your financial profile.

This verification is part of the services offered by Credial, ensuring you have peace of mind and a clear financial standing.

‍

In Switzerland, you have specific data protection rights under the Swiss Data Protection Act (FADP) when applying for credit. To exercise these rights, you can:

1. Request Access to Your Data: You are entitled to know what personal information the credit provider has collected about you, how it is processed, and for what purpose.
2. Correct Inaccuracies: If you identify errors in your data, you can request corrections to ensure accuracy.
3. Request Data Deletion: In certain circumstances, you may ask for your data to be deleted, particularly if it is no longer necessary for the purposes for which it was collected.
4. Limit Data Processing: You can request restrictions on how your data is used, especially if you dispute its accuracy or the purposes of its processing.

To exercise these rights, contact the credit provider directly with your request. They are required to respond within a reasonable timeframe. If you encounter difficulties or are unsatisfied with their response, you can contact the Federal Data Protection and Information Commissioner (FDPIC) for assistance.

‍

‍

To ensure that your lease has been successfully settled, you should first contact the leasing organization directly. They can confirm the status of your contract. However, only by ordering a ZEK extract can you verify whether the lease has been officially reported as paid off. This verification is included in the services offered by Credial.

‍

To obtain a credit increase, you must meet certain conditions. You need sufficient borrowing capacity to take on a higher loan, in compliance with the requirements of the Consumer Credit Act (LCC). Additionally, your financial history should not show any recent payment incidents.

Each bank applies its own criteria for granting a credit increase, which may vary. For example, some institutions may refuse to increase an existing loan if the request is made too soon after the initial loan was granted.

Therefore, it is advisable to carefully assess your situation before requesting an increase from your bank to avoid rejection. At Credial, our consultants assist you in evaluating and preparing your application to maximize your chances of approval.

‍

‍

Early repayment of a car loan in Switzerland is straightforward and comes with no major restrictions. You can repay your loan in full or partially at any time, without excessive fees, in accordance with consumer credit law. In the case of full repayment, only the interest accrued up to the closing date is taken into account, reducing the total financing cost. Simply contact your financial institution to obtain the exact amount to be paid and finalize the transaction.

Early repayment of a motorcycle loan allows you to pay off your loan before the agreed term.

‍

In Switzerland, according to the Consumer Credit Act (LCC), you can repay your loan at any time, either partially or in full, without excessive penalties. In the case of early repayment, interest is recalculated based on the actual loan duration.

‍

This means you only pay interest accrued up to the repayment date, helping you save money.

‍

📌 Want to repay your loan early? Contact Credial to learn more about the process and optimize your repayment.

‍

‍

Before requesting a monthly payment deferral, it is important to check with your bank whether this option is included in your contract. If it is, ask for clarification on any associated costs, especially if the deferral involves postponing payments. This could impact your ability to obtain new financing in the future, so it is essential to discuss this with your bank.

If your contract does not allow for a deferral of monthly payments, you may want to consider a loan buyout to reduce costs and avoid any negative impact on your creditworthiness. In any case, your Credial advisor will provide you with all the necessary information and guide you toward the most suitable solution.

‍

Credit consolidation, also known as loan refinancing or debt restructuring, is a financial solution that combines multiple loans into one.

‍

This approach primarily aims to reduce the total amount of monthly payments, simplifying personal finance management and offering temporary relief in loan repayments.

Several reasons may encourage you to consider credit consolidation:

‍

• Lower monthly payments: Increase your available budget and avoid the risk of over-indebtedness.

‍

• Loan grouping: Simplify the management of monthly bills related to personal loans, leasing contracts, and credit cards.

‍

• Additional liquidity: Finance a project or cover an unexpected expense.

‍

The process is simple: A lender repurchases all outstanding loans to consolidate them into a single one.

Once the new contract is activated and the previous loans are closed, the borrower only has one monthly payment to make, making it easier to manage their finances.

For a comprehensive understanding of credit consolidation and its benefits, consult the guide developed by our team.‍

‍

Complete guide to credit consolidation in Switzerland

‍

‍

‍

Credial’s credit application process prioritizes the security of your personal data at every stage. All of Credial’s partner banks are based in Switzerland, ensuring full compliance with Swiss data protection laws and regulations.

Strict security measures are implemented to safeguard the confidentiality of your information during collection and transmission to partner banks. You can be assured that your data is handled with the utmost care and in accordance with legal requirements.

‍