Applying for private credit is a journey that many people undertake, often encountering unforeseen difficulties. In Switzerland, the granting of a loan is supervised by stringent regulations. They aim to protect consumers while ensuring the stability of the financial system. However, these rules also make the process of applying for private credit more complex for many applicants.
Indeed, before granting private credit, financial institutions must carry out a detailed analysis of the creditworthiness of the applicant. This includes an assessment of their income and expenses, as well as their credit history. The purpose of this careful assessment is to ensure that the applicant is able to repay the loan without jeopardizing their financial situation.
In this new article, we will therefore explain to you in detail all the pitfalls to avoid. Thus, you will be able to navigate more efficiently in the process of applying for a private credit!
- The 4 mistakes to avoid when applying for a loan
- Never make several requests at the same time
- Communicating bad information
- Transmit poor quality documents
- Choosing the wrong private credit broker
- Our conclusion on the mistakes to avoid when obtaining a loan
The 4 mistakes to avoid when applying for a private loan!
When applying for private credit there are several common mistakes that you absolutely must avoid. So you maximize your chances to get your loan approved! Here are the 5 mistakes you should avoid when applying for funding:
- make several requests for private credit at the same time;
- communicating incorrect information about his personal situation;
- send poor quality supporting documents;
- and finally, choosing the wrong private credit broker.
Avoiding these common mistakes will dramatically increase your chances of getting private credit. Moreover, you are not alone in this process! In effect, Lica is recognized in the field of private credit in Switzerland and will guide you through each step of your request for a loan. We are committed to providing you with clear and accurate information to help you avoid common mistakes.
1. Never make several private credit applications at the same time
When it comes to applying for private credit, a common mistake can be the temptation to make several requests simultaneously with different financial institutions. This may seem like an effective strategy to increase your chances to get a loan. However, this is a counterproductive approach that can seriously compromise your ability to get the credit you need.
No faster processing!
The first reason is that several simultaneous requests do not guarantee faster processing of your Credit Report. The credit organizations consult a database of customers, the ZEK, before processing a request. If you have several applications for private credit in progress, you will therefore have several registrations at the ZEK. This can make you appear "unstable" to lenders and make it harder to get credit. In addition, it could also result in a credit offer that is not on the best terms.
An accumulation of uncontrolled refusals
Second, in case of refusal of your request by one lender, the acceptance of your application by the next lender becomes even more difficult. With several simultaneous requests, refusals can accumulate, thus making obtaining credit even more complex.
Decrease in your credit score
Finally, making several credit applications simultaneously can negatively affect your credit score. Each refusal of credit is registered with the ZEK, and the more there are refusals, the more your solvency score decreases. Thus, it will be more difficult to obtain private credit in the future.
The best way to avoid these problems is to apply for one loan at a time by carefully choosing your private credit broker. With more than 10 years of experience, Lica offers the best market conditions. In addition, you will benefit from a quick response to your request and a personalized approach. Lica can help you get the credit that best suits your needs.
2. Communicating bad information about his personal situation
As part of a request for a private credit, the integrity and accuracy of the information provided are essential. It may be tempting to change or omit certain details about your financial situation to increase your chances of getting a loan. Be careful, this can have serious consequences!
In Switzerland, as in many other countries, providing false or inaccurate information when applying for credit is considered fraud. Also, it can seriously affect your credibility and credit score. Thus, it will make it impossible to obtain private credit in the future.
Even if the legal consequences are severe, the real danger lies in the long-term financial consequences. A loan granted on the basis of false information may lead to a debt that you will not be able to repay. This can lead to excessive indebtedness, defaults and a deterioration in your credit score.
Lica optimizes the presentation of your file with correct information
To avoid these problems, it is crucial to provide accurate and complete information when applying for credit. It's there that Lica can help you. As a private credit expert in Switzerland, Lica guides you through the loan application process. We ensure that all information provided is accurate and complete. In addition, Lica offers a personalized approach to help you obtain the loan that best meets your needs, while respecting the principles of integrity and transparency. So with Lica, you can avoid costly mistakes and get private credit in an ethical and responsible way.
3. Be careful to send good quality supporting documents
The quality of the supporting documents submitted when applying for a private loan can have a significant impact on the approval process. Illegible or poor quality documents can lead to delays in the processing of your application, and even a refusal.
When submitting supporting documents, ensure that all information is clearly visible and legible. Scans or photocopies should be clear and without blurry or shadowy areas that could make the information difficult to read. The documents poorly scanned or illegible may give the impression that you are careless or unprofessional. This may therefore affect your credit application.
4. Choosing the right private credit broker?
In the context of a request for a private credit, choose well his broker private credit can make all the difference. A quality broker, like Lica, can help you identify the best credit options that best suit your needs. Here are some criteria to consider when choosing a broker:
Saving time and effort:
A good broker in private credit will save you time and effort by carrying out all the necessary steps for you to obtain a loan. It takes into account your profile and your financial situation to offer you the loan that best meets your needs.
An experienced broker is able to negotiate better credit terms. So you can make substantial savings.
Best borrowing rate:
The broker also has access to a wide range of credit options, allowing him to find the best conditions market for you.
A good broker offers personalized support and accompanies you throughout the process of applying for financing. It takes into account your specific needs and guides you through the various stages of the request.
By choosing Lica as your private credit broker, you benefit from unparalleled experience and know-how. Lica is dedicated to meeting your needs and making your dreams come true with advantageous credit. With a pre-analysis of your request, Lica accompanies you throughout the process. We are committed to getting you the private credit that best suits your financial situation.
Our conclusion on the mistakes to avoid when obtaining private credit
When applying for a private loan in Switzerland, it is essential to understand the challenges and Errors to avoid to increase your chances of success. Eligibility criteria and regulatory requirements can make obtaining a loan difficult. It is therefore crucial to be well informed and prepared.
Finally, choosing a good broker, like Lica, can make a big difference in the success of your credit application. An experienced broker can help you find the best credit terms. You save time and effort by taking advantage of personalized support.
Do you have questions before applying for private credit? Our advisors are there to answer your questions 7 days a week directly on WhatsApp. Ask us for more information and we will be happy to answer you!