PERSONAL LOANS
Loans without a ZEK entry
Have you applied for a loan and instead of money received an entry at the Central Office for Credit Information (ZEK)? Or do you already have an entry and are unsure whether and how to get a loan? Comparis provides tips on how to apply for a loan despite a ZEK entry.
1. What is the ZEK?
In Switzerland, reputable loan providers have organized themselves into an association known as the Central Office for Credit Information (or ZEK for short). Members are obliged to report rejected personal loans, loans granted, leases and blocked credit cards. This is because members are supposed to be transparent about the creditworthiness of their existing or potential customers.
As a private individual, you can request your own ZEK entries for free (link available in French and German). Note: if a loan application is rejected, the ZEK entry remains visible for two years. After that, it will be deleted.
2. Loan applications without the ZEK: is it possible?
No. Every credible lender is a member of the ZEK. Even if you apply via a credit intermediary, there is no loan without a ZEK entry. In the end, brokers conclude contracts with the same reputable lenders. They are also members of the ZEK.
An alternative: independent verification by a credit intermediary
Credit intermediaries like Credaris can help you find the right loan for you. Credaris is the largest credit intermediary in Switzerland. When requesting a personal loan, Credaris first reviews your personal situation. Only then is a loan application made. If Credaris considers your chances of getting a loan to be poor, you will find out the reason for this. This allows you to take the appropriate steps before applying for a loan to avoid a negative ZEK entry.
3. Taking out a loan despite the ZEK entry
A ZEK entry is not necessarily a bad thing. There are negative, neutral and positive entries. Neutral entries include, for example, current loans or loan applications. Negative entries include credit card blocks or late payments for loans or leases. Regular payments – for example for paying back a loan on time – are recorded as positive credit reports.
Positive, negative and neutral ZEK entries
Whether or not a ZEK entry prevents a loan from being granted depends on the type of entry. Do you already have a ZEK entry? Then you should check what effect this will have before making an application: will you get worse conditions (for example the interest rate), or even no loan at all?
How long ZEK entries remain visible is transparently outlined in the ZEK regulations (link available in French and German). The more serious the incident affecting an individual's creditworthiness, the longer the entry will remain available.
Also interesting: important ZEK entries and their meaning.
Can I delete my ZEK entries?
Correct entries are kept for as long as required by the ZEK regulations. They cannot be deleted.
Incorrect entries can be deleted, however. This must be requested by the party from which the entry originates.
The responsible party should be provided with proof that this is an incorrect entry, and that a correction should therefore be reported to the ZEK.
Learn more about deleting incorrect data (in German and French only).
Comparis tip for "bad" ZEK entries
It's not a good idea to submit applications to several lenders at the same time. They can view all applications in the ZEK register. This can reduce your chances of a successful loan application. Several rejections – even without a negative reason – have an adverse effect on you.
4. Beware of dubious "credit providers"
They advertise "instant loans despite ZEK" or "loans without a credit check". This sort of lender is not to be trusted. They often drive people even further into debt and usually have fraudulent intentions.
Reputable Swiss lenders never waive a credit check and are always members of the ZEK. Likewise, a reputable provider will never issue you an invoice before a loan has been transferred. By law, brokers cannot charge their clients any fees.
Do you need more information?
Get an overview of loans here: personal loans in Switzerland
Avoid the most common loan pitfalls: how to spot untrustworthy lenders
5. FAQs on taking out a loan without a ZEK entry
The Central Office for Credit Information (ZEK) is a database for the exchange of information for all lenders such as credit institutions, banks and leasing providers. The ZEK stores creditworthiness information about private individuals. These are checked by ZEK members in the event of a loan application or a lease application for the purposes of creditworthiness assessment and risk assessment.
Events relating to the credit standing of a private individual in connection with consumer loans, leases and credit cards are stored in the ZEK database. Depending on the type of event, an entry is made with the corresponding ZEK code. The ZEK database is one of the central components of any loan application. Rejections, regardless of the reason, are also saved for two years and are visible to other providers. Once you have made a loan application or have entered a leasing agreement, a ZEK entry can no longer be prevented. This is not fundamentally bad. Problems do not arise until you have negative entries. This is especially true for those who show poor payment habits.
First of all, you should only make one loan application. If the loan is rejected, you should get to the bottom of the reason why. The first step is to request your ZEK entries (in German, French and Italian only). Also check whether you meet the requirements for a personal loan. This will help you find reasons that may have led to your rejection.
Negative ZEK entries are mainly avoided by making timely payments and complying with loan, credit card and leasing agreements. The better your payment behaviour, the better your starting point.
Lenders want their loans to be repaid. They have to decide: should a loan be granted? How much can you afford? How is your personal risk of default assessed, and how are the conditions determined? The exchange of data at the ZEK helps with this evaluation. It means that almost all loans in Switzerland are repaid. Thanks to this strict risk assessment, loans do not become more expensive.
Before Credaris submits a loan application, it conducts a detailed preliminary check. Once Credaris has all important information from you, it can choose the provider where your chances of obtaining a loan are greatest and submit your loan application there, thanks to many years of experience and a large network of reputable lenders. This pre-selection significantly increases the approval rate. Due to the size of Credaris, the conditions are no worse than with a direct request.
This article was first published on 10.01.2022