A debt-collection entry (Betreibung) can make it harder to obtain a loan, but it does not necessarily rule one out. In Switzerland, every lender assesses individually whether a loan is possible despite a debt-collection entry. Here you will learn which conditions apply and what you can do.
What is a debt-collection entry (Betreibung)?
A debt-collection proceeding (Betreibung) is a legally regulated procedure for recovering debts in Switzerland. When a creditor does not receive payment of a claim, they can initiate a debt-collection proceeding with the debt-collection office. The entry is recorded in the debt-collection register and can be viewed by third parties (e.g. lenders).
Impact on loan approval
A debt-collection entry signals an increased risk to the lender. Most banks and credit institutions check the debt-collection register as part of the creditworthiness assessment. An entry does not automatically lead to rejection, but it is treated as a negative factor. What matters is whether the debt-collection claim has been paid and how far back it dates.
When is a loan still possible?
A loan despite a debt-collection entry can be possible if the debt-collection claim has been paid in full, if it dates back more than 3-5 years, if your current income is stable and sufficient, and if you have no open debt-collection proceedings. Every case is assessed individually.
What can you do?
Pay off open debt-collection claims and have the entries deleted. A debt-collection entry is always a snapshot in time. Request a current extract from the debt-collection register. Make sure that companies such as CRIF are informed that you no longer have any debt-collection entries in the register. Debt-collection claims are often ordered through third-party providers, each of which stores a copy along with the related information in their databases. But if that database is then not updated with the positive events, you remain flagged there as a bad payer.