Loan without credit check in Switzerland
Applying for a loan without a credit check sounds tempting, quick and uncomplicated. But why is this not a good idea? And what alternatives are there? You can find all the important information here.
Loan without a credit check: Summary
With every loan application, the financial institution carries out a credit check to determine whether it can grant you a loan. The credit check is designed to ensure that no one falls into the debt trap. The granting of loans without a credit check is prohibited in Switzerland. You should avoid such offers at all costs.
Why the credit check is important
The Swiss Consumer Credit Law requires a credit check to be carried out for every loan application. The credit check protects both parties: you, so that you can repay your loan, and the loan institution, which does not want to lose its money. For this reason, the loan institution checks your finances, your lifestyle and your payment behaviour.
An important factor here is the Central Office for Credit Information (ZEK). Negative entries there can cause the loan institution to think twice about lending you money. A thorough credit check is therefore in the interests of both parties.
Avoid dubious offers
Loan offers without a credit check are prohibited and often fraudulent. Such offers circumvent legal requirements that were issued for your protection. You could quickly fall into the debt trap. You should therefore steer clear of offers such as "instant loan without a credit check".
Alternative: The circle of friends
One legal way to obtain a loan without a credit check is to take out a loan from friends or relatives. Loans between private individuals are governed by freedom of contract. You can decide for yourself how the money is to be repaid, how high the interest rates are, etc.
An example: You need 20,000 francs. An acquaintance has this money in his savings account, but only receives 0.5 % interest. You would have to pay 5 % for a personal loan. If you meet at 2% interest, you both win: Your friend receives 400 francs instead of 100, and you pay 400 francs instead of 1,000.
Nevertheless, you should put the details of the arrangement in writing to avoid disputes.
Tips for recognising dubious offers
No reputable lender in Switzerland waives the credit check. Reputable lenders are members of the ZEK. However, this does not apply to loan brokers. Dubious providers often charge fees or advance payments. Loan brokers are not allowed to charge you any fees. Fees must be included in the APR or listed in the loan agreement.
If you have any doubts about a provider, research online to see if you can find information in forums or on relevant websites.
Conclusion
A credit check may seem time-consuming, but it is there to protect you. Avoid dubious offers and consider alternatives such as loans from friends or relatives. This will keep you financially secure and prevent you from falling into the debt trap.