Loans can be taken out not only in Germany, but also in neighboring countries such as Switzerland and Liechtenstein. Banks from both countries mentioned offer Swiss loans without Credit Bureau as a unique selling point. Furthermore, loans with the Swiss franc as a currency are popular for construction finance.
Loans without Credit Bureau
If a citizen takes out a loan in Switzerland, it is usually a loan without Credit Bureau.Since the financial institution based in Switzerland is not a contractual partner of Credit Bureau in Germany, it can neither make an inquiry nor report the borrowing to the credit protection agency. In Switzerland, the ZEK is similar to the Credit Bureau, but it does not have credit data from Germany.
A prerequisite for lending without Credit Bureau is usually a permanent position, since only a few Swiss banks also grant their loans to freelancers and the self-employed. Furthermore, customers have to prove a higher minimum income than required by German banks if they want to take out a loan in Switzerland without Credit Bureau. Sufa-free Swiss loans are processed via a German bank account of the selected bank and in the currency of the USD.
A Credit Bureau-free loan in Switzerland is not only taken up by people with negative Credit Bureau entries, but also by people with existing loan liabilities. Although these are not considered negative entries, they are nevertheless recorded by Credit Bureau and transmitted to the requesting banks. Borrowers accept that Swiss Credit Bureau-free loans have slightly higher loan interest rates than loans taken out at German banks. So that they don’t pay overdue interest, borrowers compare several offers for loans from Switzerland.
Building loans from Switzerland
While loans without Credit Bureau are paid out in USD, borrowing takes place via Swiss banks for real estate financing in Swiss francs. The corresponding loans are often even cheaper than mortgage lending in Germany. In addition, there is the expectation that future changes in the exchange rate will generate further benefits.
The Swiss franc is not firmly linked to the USD, but there is a minimum exchange rate to be secured by the Swiss National Bank through currency sales. When builders or property buyers take out their loan in Switzerland, the payment, like the subsequent repayment of the loan, is usually made via a Swiss bank account, in contrast to Credit Bureau-free loans, which results in costs.
These additional payment costs must be taken into account when comparing credit between the offers of banks from Germany and Switzerland. In addition, the collateralization of the Swiss real estate loan referred to as a mortgage loan differs in some points from the usual procedure in Germany, but this does not result in any disadvantages for the German construction borrower.