Long before you start looking for a payday loan, you should always try to keep your credit rating at a positive level. If you have already taken out loans, it is advantageous to repay the monthly installments regularly and on time.
Each provider, regardless of whether it is a house bank or an online provider, evaluates the creditworthiness of the customer when deciding whether the requested loan will be concluded. Both creditworthiness and creditworthiness are checked within this check. Data from external information points are also used for this.
Improve creditworthiness to get better interest
A portability calculation is used to determine whether the borrower with the requested loan is still in a financial position to be able to pay everything back on time. Among other things, all income and expenditure are compared. The identity is also checked and the previous payment behavior is examined. The process of checking credit is the same for an online loan platform as it is for a bank.
Our tip: Would you like to find out how financial institutions or online providers rate your personal creditworthiness? At mycrifdata.ch, private individuals can find online information on evaluating and documenting their creditworthiness.
Preparation is essential if you want to take out a loan
Knowing which documents are required to calculate the loan offer, you as a customer can have a decisive positive influence on the process, or at least accelerate it. If you would like to take out a loan and decide to apply for it from us, we need the following documents from you:
- Valid passport or ID copy
- Valid copy of the foreigner ID
- Last 3 pay slips
- Possibly. Copy of rental agreement
- Possibly. Debt collection register extract
- Possibly. Copy of bank statement
Our tip: Try to provide all the necessary documents before you submit your loan request. The application for the debt enforcement register extract usually takes 7-10 days.
Attention: Every credit request is registered and may have a negative impact on your creditworthiness in the future
As already mentioned above, banks and online providers use data from external information centers for verification. In addition to the CRIF, there is also the ZEK, central office for credit information. Both the credit inquiry and the final result of each customer are registered within this data point.
If you request a loan from several banks within a very short time, you can see this. If the loan request is rejected, this is also visible and can have a negative impact on the decision of other financial service providers. The data for banks and online providers are visible for 2 years.
For example, we recommend that you use credit calculators from online providers. So you get a tendency in advance without already having a ZEK entry.
How is the interest rate set?
In a direct comparison, online platforms have the option of offering lower interest rates than banks. The main reason is the lower costs. While banks provide and manage many branches, an online platform operates exclusively on the Internet via a website. However, the ultimate rate of interest for each borrower is based on the same principles.
The nominal interest rate is based on the determined credit rating. This indicates the amount of the pure interest costs for a loan. If additional costs (payment costs, insurance) are added, this is called the effective interest. The nominal interest rate is usually lower than the effective interest rate.
The interest the borrower has to pay reflects the likelihood that the loan will default. This means the lower the interest rate, the lower the probability that there will be a total loss. On the contrary, the interest rate rises with increasing probability of a total default.