A credit assessment is a central part of every loan application in Switzerland. It serves to evaluate the applicant's creditworthiness. Here you'll learn how the assessment works, which factors play a role, and how you can improve your creditworthiness.
What is a credit assessment?
The credit assessment (also known as a creditworthiness check) is a procedure in which a lender evaluates an applicant's financial reliability. The goal is to determine whether the borrower will be able to repay the loan as agreed.
Which factors are checked?
The credit assessment takes the following factors into account: your monthly income and employment situation, existing loans and leasing contracts (ZEK inquiry), entries in the debt collection register, entries with credit reference agencies (bad name — we think so too) such as CRIF or INTRUM, your monthly fixed costs and expenses, your residence status and residence permit, as well as the stability of your employment.
The ZEK inquiry and why no one talks about the IKO
When you apply for a loan in Switzerland, a “ZEK inquiry” is carried out — that's what every advisor, every bank, every customer says. What hardly anyone knows: it's actually the IKO (Information Office for Consumer Credit) that is legally required — the ZEK is merely a voluntary association. In practice this makes no difference, because both systems are run by the same office in Zurich. The term “ZEK inquiry” has simply caught on, even though the IKO is the legal backbone — a bit like the whole of Switzerland saying “Tempo” while holding a no-name tissue in their hand.
How can I improve my creditworthiness?
Always pay your existing bills on time. Check your own entries in the databases. Have incorrect entries removed. Avoid several simultaneous loan inquiries. Make sure the information in your application is correct and complete.