A loan application sometimes presents itself as a miracle solution to a difficult life context. However, financial organizations such as banks have every right to refuse the request. A refused credit is motivated by several reasons, however the consequences are penalizing in a country where credit reigns supreme. Focus on the negative repercussions of a loan denial.
What are the main consequences of a refused credit?
The dispute of a credit application causes real prejudice to the borrower since the latter must wait for a period of at least 6 months before being able to file a new request. The term varies depending on the number and factors of the credit denial exposed by banks and financial institutions.
The major influence of the number
A denial of credit and registration with the ZEK which does not compromise your solvency as long as the accumulation does not go beyond a third posting. When this quota is reached, a new loan application attempt will be automatically refused.
The first fatal mistake in the image of a borrower is in the filing of files at multiple institutions simultaneously. Assuming that all requests are rejected since certain basic conditions are not met according to the instructions of the LCC law, the accumulated count will exceed the limit. New loan applications are going to be tricky and complicated in the future.
This situation reflects the need to use the services of a broker to file credit applications in order and in a thoughtful manner. He will therefore take the time to select the financial institutions that will give your profile more luck, therefore grant you the loan and prepare your credit application as well as possible. In the event of a rejection, the ZEK will only retain a single notification and not several, which will therefore leave you the possibility of preparing your case differently.
Trying to apply for credit with a lawsuit: is it a good idea?
There is no point in trying to file a new credit report when you have received a refusal from a financial institution. Obviously, the latter and all the establishments which grant a loan are obliged to reject the request of a person who already has more than one lawsuit in their extract. This obligation is limited by the Swiss Law on Consumer Credit or LCC.
This new demand will also tarnish your image with certain establishments. They will refuse your request but they will save your data in their personal databases. So even if you have taken the necessary steps to resolve your situation and file another claim, it is very likely that the entity will decline the loan. This is because of your history recorded internally.
At the end of the day, applying for credit with a lawsuit is a bad idea. Indeed, access to a loan will be particularly difficult, if not impossible in the future. Here too, the best solution is to call on the service of Lica who will know how to deal with this situation. Then you can submit a new request again.
How do banks and financial institutions know about your situation?
In Switzerland, the creditworthiness of an individual who takes out a loan is particularly important. As mentioned above, ZEK is one such registration institution. It is a loan information center that archives the creditworthiness information of individual borrowers. Credit data, whether positive or negative, is stored in several different registers.
ZEK collects the following information about you:
- All of your current and / or previously contracted obligations;
- Whether or not you fulfill your obligations;
- The directory of your credit application, with validation details or not.
If your credit application file has been filed with a bank, the credit refusal is automatically registered with ZEK. This for a period of 6 months and a notification is linked to the registration.
Banks spontaneously consult the directory of this organization before validating a loan. They will also have access to your lawsuit history including the one you have already resolved. ZEK uses codes to indicate the reason for the denial of credit. Common reasons for rejection are lack of budget or too heavy a commitment to be able to take out a loan.
However, using the service of a broker to take out a loan is more than appropriate. The latter will refrain from contacting a bank to submit your file if he finds that your request is likely to be refused. In this case, you will obtain advance notice and thus avoid unnecessary registration in the ZEK central file.
Is it possible to settle a notification of a refused credit filed by a financial institution?
It is important to see the positive sides of this difficult and problematic context. First of all, the borrower has the possibility of consulting his extract of the ZEK and this free of charge. This option will give you the opportunity to check the accumulated points as well as the reasons pronounced by the bank in the form of a code. The good news is, you can take action, and rid your account of negative credit data so that all the lights turn green to make your future credit applications easier. To resolve this situation, the support of a professional is also strongly recommended. ! His presence will be very useful to you thanks to his in-depth knowledge of the financial sector and he will be able to tell you how to act with each code present in your extract from the ZEK register.
What codes are commonly used in ZEK archives?
The most frequently used codes when registering are:
- Code 00: the repayment obligation is not honored on time;
- Codes 01 and 02: a new credit request is launched, the repayment obligation is met;
- Code 03: the current loan or leasing shows a monthly payment delay. Registration is valid for 5 years;
- Code 04: the current loan or leasing is flagrantly late in payment. The concerned resorted to a reduction request. Registration is still valid for 5 years;
- Code 05: the borrower is in default and the bank has lost a large sum. Registration is valid for 5 years.
The solutions offered by Lica in case of a refused credit
Carry out your loan application with Lica it is to guarantee you a high acceptance rate. Better than applying directly to a financial institution. In addition, at Lica you benefit from the best rates on the market and a cashback of up to 5,000.- in addition to your financing! So why pay more elsewhere?
If you have been refused your loan, don't panic! Above all, do not make any other additional request and submit your file to Lica. Our specialists will assist you until your financing is obtained and will offer you advantageous solutions to resolve the situation.