All credit granting is preceded by a credit examination. The purpose of this is to analyze the solvency and the credibility of the interested loan taker. This will ensure that you are able to honor the chosen credit. Find out here how exactly granting credit works and how it protects your interests.
Part One: Credit Check
The purpose of the credit check is to determine whether the potential borrower is financially able to repay the credit. It is therefore not only of particular interest to know if the client earns enough each month, but also if he has, after spending on rent, food, taxes, car, etc., enough money to pay the monthly payments. The lender establishes, on the basis of information provided by the borrower, a personal monthly budget whose borrower confirms the accuracy of the different positions by his signature.
Part Two: Credibility Review
The purpose of the credibility test is to know whether the customer is likely to repay a loan. It aims to reduce the risk of payment default. In addition to certain risk factors, the customer’s payment behavior is also examined. In this context, credit institutions request information from the prosecution offices and other services such as the central credit information service (ZEK).
ZEK: the essential link
The Central Credit Information Service (ZEK) is an information service for the credit and leasing sector. It records information about the loan takers (e.g. name, date of birth, marital status), as well as information about people who have already applied for or obtained credit. Only member companies of the ZEK have access to this information. On www.zek.ch, under “Personal data”, you can check whether information about you is stored and what type of information it is.
What happens if I fail the credit test?
If you fail the credit test, you will not be given the credit you want. This can protect you from possible over-indebtedness. Any credit refused is registered with the ZEK, and this information is accessible for two years to all affiliated credit institutions. However, all industry experts know that a credit check is a point in life. Your personal situation can change, as can your creditworthiness and credibility.