Personal loan rejected by the bank: what to do?

Personal loan rejected by the bank: what to do?

A personal loan can be refused in Switzerland for various reasons. There are a number of reasons that can lead to the rejection of a loan application due to legal requirements or the general terms and conditions of Swiss credit institutions. Unfortunately, this is not uncommon. However, many do not know that these decisions can be influenced to reduce the number of cancellations and increase their own chances of getting a personal loan.

Very important: the credit rating

Many people do not know about the creditworthiness. If you want to get a loan, there is no way around the question of creditworthiness. The creditworthiness is the probability with which a customer can meet his financial obligations. That is why credit rating is very important in the bank’s decision to lend. On the other hand, payment behavior is important for assessing creditworthiness. Accordingly, you can expect a poor credit rating if, for example, you do not pay your bills on time.

Even if you have several open invoices with different service providers, all of which are always paid late, this also has a negative impact on your creditworthiness. In our experience, it is worthwhile to contact the service provider in the event of payment difficulties and explain the situation to him. For this, an inhibition threshold has to be overcome, but something can often be negotiated with an honest explanation of the difficulty, such as an installment payment .

Avoid absolutely: too many simultaneous loan applications from different banks

Patience also pays off when it comes to credit, because too many simultaneous credit inquiries can have a negative impact on customer ratings. Negative decisions regarding a loan request are individual, as are the guidelines and scope for action of the various credit institutions. As a credit intermediary, as the name suggests, EarnCo Credit can talk and negotiate with the credit institutions. However, the final decision regarding lending remains solely with the Put-up Savers Bank. Basically, there is a rule that is enshrined in law: lending is prohibited if it leads to over-indebtedness. In this sense, certain loan cancellations are understandable and also benefit the customer. Here you will find our tips for a successful loan application.

As a credit broker, we can help you improve your credit rating

Thanks to its many years of experience, EarnCo Credit can assess the financial situation and advise customers on how to improve their personal credit rating. EarnCo Credit has been working as a credit broker and financial advisor in Switzerland for over 33 years. For this reason, the wide range of services relating to the financial and insurance sector enables a comprehensive and individual analysis.

Our services as a credit intermediary in Switzerland

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