Although some companies accept loan applications more often than others, a large percentage of all personal loan applications are not accepted. Has your loan been declined? Why are loan applications sometimes not accepted and how do you improve the chances of a positive answer? We offer you some explanations and our advice.


Credit declined: More often than you think

Credit declined: More often than you think

It is difficult to say exactly what the percentage of personal loan requests rejected is. The number can vary from one company to another depending on the requirements of the dossier analysis, but the customer profile also plays an important role. However, it is estimated that many personal loan requests are rejected in Switzerland:

  • People with financial difficulties often turn to banks to fix these problems with a loan.
  • Swiss law regulates the conditions for granting personal loans very strictly, which is why fixed rules apply to prevent over-indebtedness.


Why the loan is declined

credit loan is declined

Every customer situation is unique, but there are numerous reasons that typically lead to the request being rejected. The most common reasons why the loan is declined are:

  • Budget: The budget calculation is the first point that can cause problems. A net income of USD 2,900 / month is the minimum to get a loan. This depends not only on income, but also on expenditure.
  • Financial past: The banks examine the customer situation and therefore also find debt enforcements and ZEK codes. With an enforcement you can not get a loan in Switzerland and entries in the ZEK (Central Credit Office) can “hinder” a customer file for years.
  • Work situation: The borrower must have a regular income. It is therefore necessary to have been working for the same employer for at least 3 months, sometimes for 6 months (eg for holders of a B ID card). That is why unemployed people cannot get a personal loan from a bank.
  • Personal situation: A complicated private situation can also be a reason for rejection. For example, people who have been off work for at least a month due to illness cannot get a loan.


How to improve the chances


It is entirely possible for the customer to improve his chances of a positive answer. In other words, this dossier optimization reduces the likelihood that a loan will be rejected. The easiest way is to contact a professional consultant like Prestaflex who can analyze your dossier for free and manage your request. If a loan has been rejected, there are a few points to consider when making your next loan request so that the portfolio can be presented as attractively as possible:

  • Don’t make too many inquiries: Every credit request is registered with ZEK. Too many inquiries in a short period of time can block the dossier for several months.
  • Provide accurate information: Too much forgotten or withheld information not only lengthens the dossier analysis process, but also reduces the lender’s trust in the customer.
  • Don’t forget any important information: 13. Monthly wages, bonus, additional income, alimony, other household income (spouse income, children in teaching, etc.) are all elements that improve the budget and therefore make it less likely that the loan is rejected.


Why contact a specialist?

debt loan

Not only can a specialist reduce the likelihood that the loan will be rejected, but he can also negotiate better terms for you. Making your loan request through an experienced agency gives the customer the advantage of administrative help and personal advice, but also of more attractive offers. In addition, advice on personal loans and a dossier analysis by law are always free. We therefore advise you to contact an agent!