The Swiss credit platform

Behind a credit card refusal lies a question of creditworthiness

A credit card refusal often hides a ZEK entry in the background. The nature of these entries, how long they remain visible and how they are handled have a direct impact on access to credit and on the overall assessment of your creditworthiness.

 

When your credit card stops working: understanding why

A credit card payment can be declined without warning.

Yet in the vast majority of cases, this type of block can be explained by clearly identifiable factors linked to creditworthiness and to the registers used by financial institutions in Switzerland.

Among them, ZEK plays a central role.

 

ZEK: a key player behind credit card refusals

In Switzerland, banks and credit card issuers rely on ZEK to assess the financial behaviour of private individuals.

This register centralises information related to loans, credit cards and leasing agreements, whether in normal situations or in the event of incidents.

A ZEK entry is not automatically negative. When a card is used properly and invoices are paid on time, the entry remains neutral and reflects sound financial management.

On the other hand, certain events may lead to unfavourable entries that can result in a payment refusal or a complete card block.

 

Why a credit card may be declined

Banking institutions regularly transmit information to ZEK regarding the use of cards.

Payment delays, even occasional ones, unpaid invoices, debt collection procedures or administrative issues such as a home address that has not been updated may be enough to generate a negative code.

These entries do not affect only the card concerned. They influence the overall assessment of creditworthiness and may have an impact on other financial procedures.

 

Negative codes and how long they remain visible

When an incident is reported, a specific code is entered in ZEK. How long it remains visible depends both on the nature of the issue and on when the situation is regularised.

Once the situation returns to normal, the entry period is reduced, although it does not disappear immediately.

• Card block for various reasons : this type of block (payment delays, administrative irregularities, occasional incidents) may remain visible for up to five years as long as the situation has not been regularised. Once things return to normal, the entry is generally kept for a further two years.
• Block linked to a partial or total loss : the term “loss” means that the bank was unable to recover the full amount due, especially following debt collection or enforcement procedures. The entry may remain visible for up to ten years. Once the situation has been clarified and regularised, the visibility period is reduced to three years.
• Block due to payment arrangement measures : the negative code may appear for five years. After the arrears have been settled and the situation has been normalised, the entry generally remains visible for an additional three years.
• Block due to unknown address : an incorrect or outdated address may lead to a long-lasting entry, which may remain visible for up to ten years. Once the information has been corrected, the visibility period is reduced to around three years.

Possible consequences of a negative entry

A credit card block is not merely an inconvenience when making a payment. It can lead to several concrete difficulties:

• Refusal of new loans or leasing agreements
• Complications when looking for accommodation or obtaining a rental guarantee
• Specific requests from certain employers, especially in the financial sector

 

These effects explain why an unfavourable ZEK situation deserves prompt attention.

 

Preventing and correcting a card block

Prevention above all relies on careful financial management: meeting payment deadlines, limiting simultaneous credit applications and informing your bank of any change in your personal situation.

When a negative code has already been recorded and is justified, it cannot be removed arbitrarily.

However, a thorough analysis may sometimes make it possible to correct an entry, limit its impact or ensure that only accurate and up-to-date information appears in the registers.

This work requires a solid understanding of banking practices, and each situation deserves a personalised analysis.

A discussion with one of our specialists can help clarify the situation, identify the appropriate steps and avoid unnecessary consequences for your financial situation or your credit application.

 

 

 

 

Why so many young people struggle to pay their bills and how to get back on track

In Switzerland, first debts often appear as soon as young adults enter working life. Limited income, health insurance costs and unpaid bills can weaken a budget. Clear explanations and practical solutions to help regain control.

 

The start of adult life under financial pressure

Entering professional life is often associated with freedom and independence. Yet it also comes with new financial responsibilities.

With income still limited, every expense matters.

On top of that, there is an environment strongly driven by consumption. Targeted advertising, instalment payments and instant online shopping : everything encourages spending, sometimes without fully realising the impact on the budget.

According to various surveys, up to 30 % of 18- to 25-year-olds have already taken on debt, and many find themselves facing difficulties in paying their bills or covering unexpected expenses.

 

First commitments, first difficulties

Several factors explain why over-indebtedness often affects young adults.

The beginning of a career usually comes with a still modest salary, which limits the ability to absorb unexpected expenses.

This is sometimes compounded by a lack of financial management knowledge, making budget decisions more difficult.

Administrative transitions, especially the move to individual responsibility for health insurance, can also generate unanticipated debts.

Lastly, pressure to consume increases the risk of accumulating financial commitments during the very first years of working life.

Conversely, debt enforcement proceedings are far less common among people with a more stable financial situation, especially higher-income households, homeowners or seniors.

This shows just how decisive the first years of working life can be.

 

Unpaid health insurance : a frequent issue among young people

In Switzerland, health insurance is compulsory and represents a significant expense in the budget of young adults.

Until 2023, health insurance debts could be attributed to a young person after the age of 18 if premiums had not been paid by their parents.

These insurance debts are among the main causes of arrears and can quickly contribute to a situation of over-indebtedness. The consequences can be significant :

• Difficulty renting accommodation
• Restricted access to credit or financial products
• Entries in registers such as CRIF or ZEK
• Increased financial pressure, especially at the beginning of professional life

 

Can you recover when bills start piling up ?

Yes. But acting quickly is essential.When debts begin to accumulate, the priority is to clarify your situation, understand any debt enforcement proceedings and prevent delays from getting worse.

Some people manage to renegotiate payment deadlines with creditors, while others need to consider consolidation or debt restructuring solutions.

In all cases, a clear understanding of one’s financial situation is an essential first step toward regaining control.

 

Solutions offered by Milenia

Financial difficulties should not define your future.

At Milenia, we support young adults facing financial difficulties through responsible consumer loans and personalised telephone support.

Our approach is designed to help you regain financial visibility and structure a plan that respects your budget, with seriousness and care.

In practical terms, we help you to :

• Combine several bills and debts into one single clear and manageable monthly payment, reducing the pressure linked to multiple due dates
• Better understand your situation in the event of debt enforcement proceedings
• Answer your questions on sometimes unclear concepts such as CRIF, ZEK or creditworthiness
• Restore a more balanced budget

Each situation is analysed with seriousness and care in order to propose a suitable solution, without judgment and in complete confidentiality.

 

 

 

 

Personal loan : financing your plans without upsetting your budget

At certain times in life, additional financing may be needed to bring a personal project to life. Moving home, buying a vehicle, pursuing education or preparing for an important event : a personal loan can offer a suitable solution, provided it is chosen carefully.

 

Why take out a personal loan ?

A personal loan allows you to finance a project without having to wait several years or use all of your savings.

It offers the possibility of spreading a major expense over a defined period, with fixed and predictable monthly payments.

This approach makes budget management easier and helps maintain financial stability, while still allowing you to move forward with your plans.

The solutions offered by Milenia cover amounts ranging from CHF 3,000.– to CHF 400,000.–, with repayment terms from 6 to 120 months, tailored to each client’s financial situation and specific needs.

 

Financing a housing-related project

Housing is one of the areas in which financing needs arise most often. A personal loan can make it possible to finance renovation work, interior fittings, a move or the purchase of furniture.

It can also be used to cover a rental guarantee when changing home.

These expenses, often concentrated over a short period, can be spread over time through a loan, thereby avoiding immediate financial pressure.

Financing a vehicle other than through leasing

A personal loan is an attractive alternative to leasing when purchasing a vehicle.

Unlike leasing, a vehicle financed through a loan belongs to the borrower immediately, with no mileage limit and no obligation to return it.

This solution offers greater flexibility, especially in the event of reselling the vehicle or a change in personal circumstances, while also providing a clear view of the costs involved.

 

Supporting key moments in life

Some important life events require specific financial preparation. The arrival of a child, organising a wedding or adapting a home to a new family situation can all lead to significant expenses.

A personal loan helps absorb these costs while keeping the budget under control.

By spreading expenses over a suitable period, it becomes possible to focus on what matters most without compromising financial stability.

 

Investing in education or career change

Education is a long-term investment, both professionally and personally.

Whether it is continuing education, a diploma or a career change, the costs can be significant, especially for private or specialised schools.

A personal loan makes it possible to finance education while keeping monthly payments compatible with current income, thereby offering the opportunity to progress professionally without throwing the budget off balance.

 

Managing taxes or overdue bills

There are times when taxes or certain bill have not been set aside in time.

As long as these debts have not led to debt enforcement proceedings, a loan can make it possible to settle them quickly and combine several payments into one single monthly instalment.

This solution helps prevent a deterioration in creditworthiness and supports a return to a more stable financial situation.

 

Financing medical expenses, travel or leisure

Certain medical expenses are not covered by health insurance, especially dental care or some specific treatments.

In these situations, a personal loan can provide a fast financing solution.

The same applies to projects related to travel, leisure or sport. Whether it is a trip abroad, a language stay or the purchase of sports equipment, these plans can be financed flexibly while taking the monthly budget into account.

 

Why choose Milenia ?

A personal loan can be an effective tool for making a project happen, provided it is suited to your needs and your financial capacity.

With professional support and careful analysis, it is possible to move forward with confidence while preserving your budget balance.

Milenia stands out through its personalised approach and professional support at every stage of the financing process.

Each application is reviewed individually in order to offer a solution consistent with the client’s financial situation.