With conventional bank loans, not only is a Credit Bureau request made before the loan amount is paid out, but also the borrowing is entered in the credit protection record. Both can be avoided by the customer taking out the desired loan in Switzerland. Loans without Credit Bureau granted by federal banks are referred to and advertised as Swiss loans.
The omission of the Credit Bureau entry is useful
Consumers often combine federal banks’ Credit Bureau-free credit with a waiver of the Credit Bureau request. That is true, but the failure to report the loan to the credit protection association is also advantageous in many cases. If borrowers plan to build a house or buy a property within the next six months, a Swiss loan without Credit Bureau entry is an option.
The reason for this is that many financial institutions have considered borrowing within the past six months when evaluating their creditworthiness and this obviously also leads to a reduction in the score at Credit Bureau. This means that Swiss credit without Credit Bureau makes sense for all borrowers who are planning to borrow further in the foreseeable future.
The practical loan processing
In the case of a Swiss loan without Credit Bureau entry, the borrower does not bear any additional currency risk since the loan contract is processed entirely in the currency of the dollar. No additional bank charges are incurred thanks to a German bank account maintained by the Swiss financial institution. In the case of a Swiss loan without Credit Bureau entry applied for directly through the credit bank, the maximum possible loan amount is usually $ 3,500; few institutions have meanwhile increased the amount to $ 5000.
At the same time, the loans are only available to employees with fixed earnings, while freelancers and the self-employed can submit a corresponding loan application through an intermediary. This procedure also enables large amounts to be borrowed in Switzerland. When choosing their intermediary, bank customers make sure that they only charge an appropriate commission after the loan has been paid out and no upfront costs in accordance with the applicable legal situation.
The fact that Swiss credit is granted without Credit Bureau entry does not mean that the loan is not registered. Rather, a report is sent to the Swiss credit protection agency, to whose data German financial institutions have no access. This prevents the simultaneous borrowing of several Credit Bureau-free loans in Switzerland, but does not affect later borrowing in Germany.