Loan despite debt collection and debts in Switzerland

Personal loan and debt collection: what you need to know

In Switzerland, a debt collection extract is a key prerequisite for the granting of a loan. Both your ability to pay and your solvency are checked. A decisive point here is whether there are any entries in the debt collection register. Here you can find out how debt collection affects your chances of obtaining a loan and what you can do to improve your credit rating.

Outstanding debt collection: Almost no chance of a loan

If you have one or more outstanding debt collections, it will be very difficult to obtain a loan. In most cases, your application will be rejected directly by each credit provider. This rejection will then remain visible for two years in the ZEK, the Central Office for Credit Information. You should therefore make sure that all outstanding debts have been settled before you apply for a loan.

Paid debt collection: Chances of getting a loan

If you have settled your debts and completed the debt enforcement proceedings, your chances of obtaining a loan are better. However, it depends on whether it is one or several debt enforcement proceedings and how long ago they were made. In principle, debt enforcement proceedings remain stored in the debt enforcement register for five years. Earlier cancellation is usually only possible if the debt enforcement was unjustified and you can prove this.

Remember: Repeated debt enforcement proceedings have a negative impact on your credit rating even after five years. Unpaid debt enforcement proceedings that have led to seizure or a certificate of loss are particularly problematic. In such cases, your chances of getting a loan are very limited for a long time.

Steps for cancelling debt enforcement proceedings

Completed debt enforcement proceedings can be deleted from the debt enforcement register early if you have repaid your debts in full. To do this, you must ask your creditor to withdraw the debt enforcement from the debt enforcement office. This usually costs a fee, but it is worth the effort as it can improve your credit conditions.

Tip: Sample letter for the withdrawal of a debt collection order

If you have repaid your debts, you can use a sample letter for the withdrawal of debt collection, which you can find on the website of the Foundation for Consumer Protection. Remember that you can only ask your creditor to withdraw the debt enforcement, but you cannot force them to do so.

Seizure and certificate of loss: no chance of credit

It is almost impossible to obtain a personal loan in Switzerland if you have a seizure or a certificate of loss. Even if you have paid off the debt after a personal bankruptcy, the negative impact on your credit rating remains.

Proactive avoidance of debt collection

If you get into financial difficulties and are unable to pay your bills on time, you should not remain inactive. Contact your creditors and ask for a deferment of payment. Most companies are willing to accommodate you, as they also want to avoid debt collection.

Summary

• No open debt enforcement proceedings: To ensure a good credit rating, there should be no outstanding debt collection proceedings in the debt collection register.
• Cancelling completed debt enforcement proceedings: After repaying your debts, you can have the debt collection cancelled early to improve your credit conditions.
• Proactive communication: In the event of financial difficulties, you should immediately seek dialogue with your creditors.

Conclusion

A spotless debt collection extract is the key to good credit conditions. Open debt enforcement proceedings make a loan almost impossible, but with completed and cancelled debt enforcement proceedings your chances are better. Be proactive and transparent with your creditors to improve your financial situation and strengthen your credit rating.

Frequently asked questions

How long do debt collections remain in the debt collection register?

In principle, debt collections remain stored in the debt collection register for five years.

Can I have an unjustified debt collection cancelled?

Yes, if the debt collection was unjustified and you can prove this, earlier cancellation is possible.

How can I have a debt collection cancelled prematurely?

You can have debt enforcement cancelled prematurely by asking your creditor to withdraw the debt enforcement from the debt enforcement office.

What are the consequences of repeated debt collection?

Repeated debt enforcement proceedings have a negative impact on your credit rating even after five years. Unpaid debt enforcement proceedings that have led to seizure or a certificate of loss are particularly problematic.