Creditworthiness | Credit without Papers
Swiss credit – what’s up on this loan offer? No doubt: When it comes to finances, the Swiss are the German investor and savers – and some tax eviction – best friend. But to capitalize on Swiss liberalism in capital matters, you do not have to juggle big sums of money. On the contrary, even the “little man” can draw one or the other advantage here. For example, with the Swiss loan called schufa-free loan . If there are financial bottlenecks to overcome, this form of credit can be a way out. But that does not mean that a Swiss loan does not still require a positive, sufficient credit rating. And that’s exactly what leads German consumers to misconceptions about a Swiss loan. So here’s a clearer picture of Swiss credit.
Creditworthiness vs. Schufa at Swiss Credit
It is true that one characteristic of the Swiss loan is that it is awarded in spite of Schufa. However, in a different context than the majority of German citizens believe. For the Swiss are more conservative in the allocation of their loans and do not grant loans based on pure trust. Consequently, the own creditworthiness of a Swiss loan must be demonstrably in positive form. From what legitimately results the question, why then the Swiss credit is then called a loan without Schufa? The answer to this is quite simple: Schufa-free credit is not called the Swiss loan, because you get this credit approved without proof of credit. But simply because the Swiss credit is simply not reported to the German Schufa and thus registered.
In plain language, this means that a Swiss financial services provider does NOT access the databases of the German SCHUFA when making a credit request from a German citizen for rating the creditworthiness. A Swiss loan approved by a Swiss financial service provider or a bank therefore does NOT appear as an entry in the Schufa register.
Classic examples of a Swiss loan
- To replace an existing German loan with a Swiss loan in order to have no “burdened” Schufa for another loan in Germany.
- First take a Swiss loan, so as not to be disadvantaged in a German bank, if you want to take another there.
- Apply for a Swiss loan in addition to a loan in Germany as long as the underlying liquidity can be proven.
- An unforeseen liquidity problem jeopardizes the Schufa classification and thus the interest rate of a loan already applied for in Germany.
Why does Swiss credit work without Schufa?
The Swiss loan is issued by Swiss banks and financial institutions. These are subject to Swiss banking law. A protection community for general credit protection (short: Schufa) does not exist in Switzerland. Accordingly, there is no Swiss equivalent to which the Schufa would correspond. And for the Swiss banks there is no obligation to obtain information from the German Schufa on the creditworthiness of the customer. Nevertheless, Schufa Holding is obliged to provide information to the Swiss Bank if it wishes to obtain information and is affiliated with SCHUFA as a partner. This is the case, for example, when the Swiss bank is also active in the financial business in Germany.
The customer may instruct the Swiss bank to refrain from doing so. For example, if there is a reasonable suspicion that the Schufa Register contains incorrect entries about its own creditworthiness. Nevertheless, it also evaluates a potential Swiss lender more positive if the insight into the Schufa information is granted.
Swiss credits do NOT find their way to the German SCHUFA
Conversely, the Swiss loan HOWEVER NOT found in the Schufa again. And this is probably the biggest advantage for the borrower. Because the Swiss credit does not affect the creditworthiness – neither negative, nor positive. Thus, if only the Swiss credit is running and there are no other reasons for negative Schufa entries, it is still a blank slate for German banks.