Applying for a loan despite a rejection in Switzerland - when a new review can make sense

Credit refusal in Switzerland - a frequent topic

A loan rejection is one of the most common experiences of prospective borrowers in Switzerland. Many people submit a loan application to their bank or an online bank and receive a rejection shortly afterwards. This situation is initially frustrating for many applicants, as it is often not clear why the loan was rejected.

However, it is important to understand that a rejection does not automatically mean that no loan is possible. Banks work with different credit guidelines, internal assessment systems and risk models. While one bank rejects an application, another bank may well assess the same application favourably.

The decisive factor is always the specific reason for the rejection. In some cases, there is actually no possibility of financing, for example if there is a negative entry in the ZEK. In other situations, however, a re-examination can be very useful, especially if the wrong bank has been approached or the personal situation has improved.

If you would like to check which credit options are currently available, you can find a start a new credit enquiry:

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The most important reasons for a loan rejection

Banks reject loan applications for various reasons. In many cases, the decision depends not only on a single factor, but on a combination of several criteria.

The most common reasons include

• too little portability
• Existing obligations too high
• Unstable professional situation
• Too short a period of employment
• Too many parallel loan requests
• negative credit entries

For each application, banks check whether the monthly loan instalment is sustainable in the long term. A so-called affordability calculation is carried out for this purpose. The bank analyses income, housing costs and existing obligations.

If the income is calculated too tightly or other loans already exist, a bank may reject the application. However, this does not necessarily mean that financing is fundamentally impossible. Another bank may assess the same situation differently.

Negative ZEK entries - when there is actually no chance

The ZEK, the Central Office for Credit Information, plays a special role in Switzerland. This database contains information on loans, leasing contracts and credit enquiries.

If there is a negative ZEK entry, for example due to payment problems or serious breaches of contract, the chances of obtaining a new loan are very slim. Banks access this database for every credit enquiry and immediately see whether there are any critical entries.

In such cases, a new credit enquiry is usually not advisable as long as the negative entry is active. Instead, it should first be clarified how long the entry will remain and whether the credit rating can be improved in the long term.

The situation is different if only several enquiries have been saved or if there are older loans that have been repaid correctly. In this case, a new check may make sense.

If the wrong bank was requested

A very common reason for a loan rejection is that the application was submitted to a bank whose credit guidelines do not match the personal situation.

Banks differ greatly in their assessment criteria. Some banks favour applicants with very stable employment and a long period of employment. Other banks are more flexible, for example in the case of temporary employment relationships or certain income structures.

This is why it happens time and again that a loan application is rejected by one bank even though another bank would accept the same application. This is exactly where a structured loan comparison can help.

If you would like to check which banks are currently eligible, you can do so here Start a new enquiry:

Different credit guidelines of the banks

Each bank works with its own risk models. These models determine which customer profiles are prioritised for financing and which risks should be avoided.

One example:
One bank takes a critical view of applicants with short periods of employment. Another bank places more emphasis on total income and financial stability.

There are also differences with existing loans. While some banks react very strictly to existing obligations, other banks take greater account of overall sustainability.

These differences mean that the same loan application can be assessed differently by different banks. This is precisely why a rejection is not automatically a final judgement on an applicant's creditworthiness.

If the personal situation has improved

Another important point is the development of the financial situation over time. A loan refusal is always based on the information available at the time of the review.

If the situation has subsequently improved, it may make sense to carry out a new test. Examples of this are

• higher income
• Longer period of employment
• Reduction of existing loans
• Better credit rating
• More stability in the employment relationship

Even small changes can significantly improve the load-bearing capacity calculation. This can result in Credit applicationwhich was previously rejected, will later be successful.

If you would like to check whether a new enquiry is worthwhile, you can Start the credit application here:

Why multiple direct enquiries to banks can be problematic

Many applicants react to a rejection by immediately submitting new loan applications to several banks at the same time. However, this approach can be problematic.

Several credit enquiries within a short period of time are stored in the CRC. If banks see that numerous enquiries have been made at the same time, this can be interpreted as an increased risk.

It therefore usually makes more sense to make structured credit enquiries instead of making uncoordinated enquiries to several banks at the same time. A comparison system or a targeted check can help to avoid unnecessary entries.

Further information to compare different credit offers can be found here:

Which loan types may still be possible despite rejection

Depending on the situation, a rejection may also be due to the wrong type of loan being chosen. For example, some banks tend to grant traditional consumer loans, while others are more specialised in specific financing.

Anyone wishing to finance a major purchase can, for example, take out a Consumer credit check:

When it comes to the financing of a vehicle, a Car loan be a suitable solution:

The banks' assessment criteria also differ depending on the type of loan.

When a new credit application may be useful

A new credit enquiry may make sense if one of the following points applies:

• the rejection was based on internal bank criteria
• the wrong bank was requested
• The financial situation has improved
• a more realistic loan amount is selected
• a structured audit is carried out

In these cases, it is worth having the situation reassessed. Especially if new information is available or the original application was not optimised, a new assessment may lead to a different result.

If you would like to check whether a loan is possible despite a previous rejection, you can do so here make a new enquiry:

A rejection does not automatically mean the final end

Although a loan rejection is unpleasant, it does not automatically mean that no loan is possible. The decisive factor is always the specific reason for the rejection.

For negative ZEK entries there is generally no chance of obtaining financing. In many other cases, however, it may make sense to reconsider, especially if the wrong bank has been approached or the financial situation has improved.

That's why it's worth it, Structured credit enquiries and not to give up prematurely. A thorough analysis of the situation can help to realistically assess the opportunities and find the right bank.

If you would like to check whether a loan is possible despite a previous rejection, you can do so here Start a new credit enquiry:

FAQ - Apply for a loan despite rejection Switzerland

Can I reapply for a loan after a rejection?

Yes, it is generally possible to reapply for a loan. However, it is important to understand why the original application was rejected. A rejection does not automatically mean that a loan is not possible. Banks assess loan applications based on various criteria such as income, existing obligations, length of employment or credit rating entries. For example, if the original application was submitted to a bank whose credit guidelines do not match your personal situation, another bank may judge the same application differently. Even if your income has improved or existing loans have been reduced, it may make sense to reassess your application. If you would like to check whether the situation has changed in the meantime, you can use aStart a new enquiry:

Why do banks reject loan applications?

Banks reject loan applications for various reasons. One of the most common reasons is insufficient affordability. This means that the bank has calculated that the monthly loan instalment would be too high in relation to income. Other reasons may include existing loans, leasing contracts or credit card charges. A short period of employment or an insecure employment relationship can also lead to a rejection. In some cases, however, the rejection is not due to the financial situation itself, but to the internal criteria of the respective bank. As each bank has its own assessment models, a rejection at one bank cannot be automatically transferred to all banks.

What does a negative ZEK entry mean?

The ZEK, the Central Office for Credit Information, stores information on loans, leasing contracts and credit enquiries in Switzerland. If there is a negative ZEK entry, this usually indicates more serious problems with previous financing, such as payment arrears or breaches of contract. Banks access this database for every credit enquiry. If there is a negative entry, the chances of obtaining new financing are usually very slim. In such cases, it often makes more sense to first stabilise your credit rating in the long term instead of immediately submitting a new loan application.

Can another bank accept the loan application?

Yes, this happens relatively often. Banks differ greatly in their credit guidelines and risk models. While one bank is very conservative in its assessment and rejects an application, another bank may well accept the same application. For example, some banks attach great importance to a long period of employment, while others pay more attention to total income. Existing obligations are also assessed differently. This is precisely why it can make sense to carry out a structured loan comparison instead of just enquiring at a single bank.

Does it make sense to submit several loan applications at the same time?

Several parallel credit applications are not usually recommended. Every credit enquiry is registered in the CRC. If banks see that many enquiries have been made within a short period of time, this can be interpreted as an increased risk. This can cause the credit rating to deteriorate. Instead of enquiring with many banks at the same time, it makes more sense to carry out a structured check and select banks whose criteria match your own situation. Further Information on the loan comparison you can find here

Can a higher income improve the chances of getting a loan?

Yes, a higher income can significantly improve your chances. Banks calculate the so-called affordability for every loan application. This involves checking whether the income is sufficient to cover the monthly loan instalments in the long term. If the income has increased since the original rejection or if additional income has been added, the assessment of affordability can improve significantly. A reduction in existing obligations can also have a positive influence.

What role does the duration of employment play?

The duration of employment is an important factor for many banks when assessing credit. Stable and long-term employment indicates a regular income and therefore greater planning security for the repayment of the loan. Some banks are more cautious when assessing applicants who have only been employed by their employer for a short time. If the length of employment has increased since the original rejection, this can increase the chances of a renewed loan application.

Can I take out a new loan despite having an existing loan?

Yes, in principle this is possible. However, banks check very carefully whether the additional burden of a new loan is still acceptable. If several loans already exist or the monthly obligations are relatively high, new financing can become more difficult. The applicant's overall situation is always decisive. If the income is high enough and the existing obligations remain manageable, additional financing may still be possible.

Can a rejection also be due to the wrong bank?

Yes, this happens more often than many borrowers think. Each bank works with its own credit guidelines. Some banks favour applicants with very stable employment and a long period of employment, while other banks are more flexible with certain income situations. If an application is submitted to a bank whose criteria do not match the personal situation, it may be rejected even though another bank would accept the same application. This is precisely why a structured loan comparison is worthwhile.

Can a second test be useful if the situation has improved?

Yes, a reconsideration can be very useful if something has changed since the rejection. Examples include a higher income, a longer period of employment, fewer existing loans or a more stable living situation. Even if the loan amount originally applied for was too high and a more realistic amount is now chosen, a new assessment can lead to a different result. A new assessment can therefore help to reassess the current situation.

Can the choice of credit type play a role?

Yes, the type of loan can certainly have an influence on the rating. For example, some banks tend to grant traditional consumer loans, while others are more specialised in specific financing. If a loan was originally requested as a general personal loan, a different loan structure may make sense in some cases. You can find more information on possible loan types here:
Consumer credit / Car loan

Can you actively improve your chances of being approved for a loan?

Yes, there are several ways to improve your chances of approval. These include a stable professional situation, a longer period of employment and a realistic estimate of the loan amount. Complete and correct documentation is also crucial, as banks carry out credit checks on this basis. Careful preparation of the loan application can make the difference between rejection and approval.

When is it worthwhile new credit application to place?

A new loan application is particularly worthwhile if the original application was not optimised or if your personal situation has changed. Even if the application was submitted to a bank whose criteria do not match your own situation, a new enquiry can be useful. However, it is important to understand the reason for the rejection before making a new enquiry.

Where can you check whether a loan is possible despite rejection?

If you would like to know whether a loan could be possible despite a previous rejection, a new check may be useful. Current information is taken into account and various banks are assessed. Getting started with a You can find a new credit enquiry here

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