Before validating your credit, banks follow a rigorous process of verifying your data. Here's how.
What is your credit capacity ?
The first analysis is purely mathematical. Logic.
After all, it is not in the interest of a bank (or yours for that matter) to lend you money knowing full well that you do not have the financial capacity to repay this loan.
A law also exists prohibiting acts leading to cases of over-indebtedness. This is the law on consumer credit.
The calculation is relatively simple.
You detail your income in one column and your main expenses in another column. By main expenses, we mean the costs related to your accommodation, your health insurance, your recurring bills... It's not about whether you go to McDonald's once or twice a week.
You then deduct your expenses from your income. If the result is close to 0 or even negative, it goes without saying that you are not able to apply for a loan, let alone repay it. The process ends there.
However, we advise you to review your expenses because your budget seems unbalanced.
The tone we use is a bit paternalistic, it's true and please excuse us, but if the shoe fits, wear it.
here are many cases of over-indebtedness or personal bankruptcy in Switzerland. It is tragic for the families who suffer this kind of situation and it is often avoidable. So act before it's too late.
Now let's imagine that your calculation generates a positive result. This delta will then be considered by the bank and reworked to define your credit capacity. This is the maximum amount you can pay back in a given time. If this amount is higher than your credit application, the verification process can continue. So far so good.
What is your ability to repay ?
The analysis is not only mathematical.
Depending on the bank, analysts will comb through your profile.
Let's put ourselves in their shoes for a second.
Imagine that two people ask to lend them CHF 1 000.
You have to decide who you are going to lend this amount to.
- The first person is 44 years old, has had a permanent job for almost 20 years, has not changed employers for 8 years and was born in Switzerland.
- The second person is 23 years old, has a part-time employment contract, has already changed employers 3 times and is not Swiss.
It is very likely, despite the fact that both profiles have the adequate credit capacity, that you will choose the first person as the beneficiary of your loan.
Is this fair and equitable? Not necessarily.
Is the analysis system biased to a certain degree? Absolutely.
This doesn't mean you won't get your personal loan if you don't meet the classic "perfect customer" criteria. However, the risk factor is a decision-making element that can, depending on the case, tip the decision in your favour or against you.
It goes without saying that minimum criteria must also be met, such as the need to be of legal age and to have a declared source of income in Switzerland.
What is your payment behavior ?
For the time being, we are returning to more equitable information that is understandable in the context of a risk assessment by a lending financial institution: Your behavior as a payer.
Do you already have a loan ?
Are you used to repaying your loan on time ?
Are you registered with the debt collection office ?
Is there any data indicating missed payments or delays ?
When you sign a lease, take out a loan, take out a credit card, buy on credit... Your financial contact person provides data to a credit information centre called ZEK. Banks consult this database systematically.
If you have a proven credit capacity, the appropriate borrower profile and your creditworthiness is not in question, you will most likely have a positive response from the lending bank.
OK. So how do I build my credit report ?
We can help you put together your file, a file that will meet the expectations of our financial partners.
We will quickly but conscientiously analyze your supporting documents such as your payslips, pension certificates, leases, etc
We will calculate your credit capacity and check your data history within the ZEK.
Together, we will be able to maximize your chances of acceptance while respecting your budget and your financial capacity.
We will do all this taking into account the legal framework so that your interests are protected.
All this, in the least amount of time and with maximum attention.
The cost for this service? CHF 0.
At Milenia, we do not charge any administrative fees when you apply for credit. For information, this is forbidden.
What are my rights ?
You have a right of withdrawal up to two weeks after signing your credit agreement.
You have the right, at any time, to repay your consumer loan early.
You have the right, at any time, to pool your credits or even to change service providers if this is in your favour.
Although you have obligations to comply with once your credit agreement has been signed, you are protected by the Consumer Credit Act, which includes all the articles detailing your rights in this area.
Milenia, by your side
We are a financing platform. We aim to satisfy as many customers as possible and to maintain healthy and productive professional relationships with our financial partners.
We want to maximize your chances of acceptance so that you can realize your personal projects.
We have been successful in this for many years because we have mastered the process of analysing the banks concerned and because we know how to navigate their expectations.
However, one fundamental criterion guides us in all our efforts: a sense of responsibility.
This is one of our founding values.
When it is not in your best interest to file a credit report, we will clearly explain why and we will not go into the matter.
When the indicators are green and we can improve your life, you can count on us to present the best possible credit report so that you can obtain your financing.
In both cases, we are at your side.