1. Can I compare different loans?
Lenders in Switzerland advertise their interest rates or interest rate ranges. The most important criteria they use to assess loan applicants are also in the public domain. Nevertheless, it is difficult for consumers to find the best deal for their needs.
This is because before a loan is approved, each applicant is subject to a detailed personal check. Every lender uses different risk criteria for this. To guard against fraud, not all of these criteria are made known to the public. They are derived from a comprehensive range of economic and sociodemographic characteristics and experience acquired from the lender's own customer base. What's more, the criteria are continuously adjusted.
Only after this scoring process is complete will a lender decide whether to approve a loan, and under what conditions. For this reason, you only get a personalized loan offer after a full credit check with a specific lender.
If you're thinking of getting an overview by submitting several applications, you should know that this has a negative effect on your chances of approval. Each application is registered with the Central Office for Credit Information (ZEK) and can be viewed by all other lenders.
Find out more about requirements and credit checks.
What are the implications of this when comparing loans?
Under these circumstances, neither Comparis nor its users is in a position to compare private loan products in the usual way – as they would for health insurance premiums or internet deals, for instance.
And yet, given the high rejection rate (50% of all loan applications), finding the right provider is all the more crucial for loan products.
Important to know
Rejections remain visible at the ZEK to members for two years and can have a negative impact on your credit score.
When granting loans, the following applies: the lower the interest rate, the higher the required credit score. Some lenders will not approve loans for people who have rejected loan applications on their ZEK record. It is therefore not enough for a comparison service to simply state what interest rate ranges lenders offer. What is more important is the question of whether you as the consumer are likely to obtain the loan from your preferred lender.
Impartial comparison of advertised loans.
Personalized loan offers not possible for technical and data protection reasons.
To provide a benefit for users, loan enquiries are forwarded to Credaris.
Credaris is the largest loan broker in Switzerland. Founded in 2014 as a sister company of Comparis, Credaris has been an independent service provider since March 2022.
Licensed to act as personal loan broker.
Works closely with lenders.
Thorough pre-approval check of client profile.
Advice on options available.
Manages loan application process through to agreement.
Contracting party for the borrower.
Payout of approved loans.
Application review, loan decision, contract preparation and payout.
2. How does Comparis benefit users?
Comparis works with Credaris to improve the provision of independent advice on the Swiss credit market.
Are you looking for a loan?
3. How does Credaris work?
Credaris works closely with lenders and has become familiar with their eligibility criteria.
It supports its clients throughout the entire process – from undergoing a credit check and completing the necessary paperwork to signing the agreement and more.
A personal advisor reviews your individual situation in detail and discusses the options available.
Only after a thorough pre-approval check will Credaris submit an application to a bank, so as not to damage the applicant's credit score with avoidable negative ZEK entries.
The ZEK enquiry only takes place following a detailed check, which is not the case when applying directly to a bank. Credaris only forwards your application to the lender of your choice when it is relatively certain that you are not risking an avoidable rejection.
Credaris will not submit applications that have no chance of succeeding. Instead, it will advise you according to your personal situation and, if there are any issues with your credit score, guide you through what to do next. Credaris can also advise you on how to improve your credit profile. This will improve your chances of obtaining a loan. Otherwise, if you submit your application directly to a bank, it might be rejected without you learning the reason why.
Credaris only submits an application when it has discussed it with the client.
Using this approach, Credaris has achieved an approval rate of over 80% for the applications it has submitted. Approval rates for direct applications are around 50%.
4. Why does Comparis work with Credaris?
Credaris has many years of experience working with lenders and has access to the largest pool of lenders of all Swiss brokers. A team of specialist staff offers professional advice, with individual advisors being personally available for you.
Free, independent assessment of your credit standing including background check
Transparent – professional advice and support, from your no-obligation enquiry to conclusion of the contract
Application only submitted to the lender offering you the best chances of approval
Long-standing cooperation with the major lenders in Switzerland
Fast and hassle-free processing by the Credaris team of experts
No risk:
The service is free of charge and there is no obligation
In Switzerland, loans can be repaid at any time
5. What distinguishes Credaris from shady brokers?
Credaris only submits applications that are fully compliant with the law and will clearly inform you of your options.
Thanks to its good reputation and the high quality of the applications it submits, Credaris is not subject to the stricter assessment and approval policy often adopted by banks.
Customer satisfaction of 4.8 out of 5
Here you'll find reviews of Credaris from other customers.
6. FAQs
Credaris currently works with the following credit institutions:
Cembra Money Bank
Migros Bank
Bank-now
bob Finance
Cornèr Bank
Mobilize Financial Services
Credaris submits high-quality applications on behalf of borrowers with high-quality profiles.
This commitment to high standards propelled Credaris to become the biggest loan broker in Switzerland within just a few years.
You therefore benefit from both the confidence that lenders have in Credaris and the attractive rates and conditions it offers.
Unscrupulous brokers may be tempted to manipulate client data. The goal: a higher approval rate.
This contravenes the Consumer Credit Act and nullifies any protection the borrower might have against over-indebtedness.
Unscrupulous brokers may also submit applications with poor chances of success or send them to multiple lenders. This may result in (avoidable) rejections and negative entries on the ZEK record.
For this reason, banks are usually stricter when approving applications from brokers. Applications received from Credaris, on the other hand, are assessed using the same standards as loan applications received via the lender’s own website or branches. This means that Credaris generally offers better chances of success than other brokers.
It is illegal for brokers to charge their clients any fees.
Brokers are only compensated by the commission paid by lenders.
For Credaris, this compensation currently amounts to approximately 0.4% to 6.0% of the loan amount and is one way in which Credaris finances its services.
For consumer protection reasons, the Consumer Credit Act explicitly forbids brokers like Credaris from charging clients for their services.
No, taking out a loan via a large and experienced broker like Credaris does not increase the cost of your loan.
Credaris invests considerable expertise and effort in the quality of its applications as this is its top priority.
Credaris negotiates the rates and conditions with the lenders. The number of applications that Credaris processes has a positive effect on the rates offered to borrowers.
As a result, the interest rates available are usually as good as and in some cases even cheaper than those obtained through a direct application to a lender.
Promising or even advertising guaranteed low rates is dishonest.
Brokers and online platforms function as acquisition channels for lenders.
Paying commission to brokers is therefore an alternative to advertising and marketing expenses.
Brokers also relieve lenders of some of the administrative work.
This article was first published on 13.11.2020