ZEK and credit in Switzerland - significance, codes and influence on credit applications
Anyone who applies for a loan in Switzerland is automatically entered in the database of the
ZEK
checked. This database is a central component of the Swiss credit market and plays a decisive role in every credit decision.
Many borrowers do not realise that almost every loan, every loan application and even leasing contracts are registered in this database. Banks use this information to better assess the risk of a loan application.
The legal basis for this audit is set out in the Swiss Consumer Credit Act (KKG) has been established. This law obliges banks to carry out a comprehensive credit check before granting a loan.
You can find a detailed explanation of the statutory credit rules on our main page on the Topic Consumer Credit Act
When applying for a small loan, a budget calculation is carried out in advance. The bank calculates your monthly income and expenditure. The difference between your income and expenditure determines which loan amount and term are suitable for you.
What is the ZEK?
The ZEK is a central organisation that collects credit information from banks, leasing companies and credit card providers.
The main task of the ZEK is to reduce credit risks and prevent over-indebtedness. Banks can use this database to check whether a person already has loans or other financial obligations.
Among other things, the following information is stored:
- Current consumer loans
- Leasing contracts
- Credit card limits
- Credit enquiries
- Payment defaults
- Collection procedure
This data is used by banks to better assess the creditworthiness of an applicant.
The legal basis for this review is the Consumer Credit Act.
Further information can be found here:
Further information on the Consumer Credit Act
Why banks check the ZEK
Banks automatically carry out a ZEK enquiry with every loan application. This allows them to quickly recognise whether other obligations already exist.
Banks check in particular:
- Number of existing loans
- Amount of the loan obligations
- Number of loan applications
- Leasing contracts
- negative entries
This information is then integrated into the income statement.
As this check is required by law, it forms a central part of the credit decision.
What information does the ZEK store
The database contains a wide range of credit information.
Overview of stored information
| Category | Description of the |
|---|---|
| Consumer credit | Existing personal loan |
| Leasing contract | Current leasing contract |
| Credit card | Credit card limit |
| Credit enquiry | Examination of a credit application |
| Default of payment | late payment |
| Debt collection | Outstanding receivable |
This information enables banks to assess risks very quickly.
When applying for a small loan, a budget calculation is carried out in advance. The bank calculates your monthly income and expenditure. The difference between your income and expenditure determines which loan amount and term are suitable for you.
ZEK Codes Overview - Meaning of all important entries
The ZEK uses so-called Codesto classify credit information. These codes give banks an indication of a person's credit history and help them to better assess risks.
Some codes are neutral or informativewhile others negative credit entries and can make lending more difficult.
Overview of all important ZEK codes
| ZEK Code | Meaning | Effects on loans |
|---|---|---|
| 01 | Current consumer credit | Neutral, normal credit obligation |
| 02 | Leasing contract | Neutral, is taken into account in the budget calculation |
| 03 | Credit enquiry submitted | Neutral, multiple requests can signal risk |
| 04 | Credit agreement terminated | Neutral, shows completed loan |
| 05 | Loan agreement cancelled | Neutral or slightly negative depending on the situation |
| 06 | Credit declined | Can make lending more difficult |
| 07 | Loan cancelled by bank | Negative |
| 08 | Payment arrears | Negative entry |
| 09 | Payment agreement / dunning procedure | Negative |
| 10 | Collection procedure | Strongly negative |
| 11 | Loss certificate / debt collection | Very negative |
| 12 | Credit card limit | Neutral |
| 13 | Credit card enquiry | Neutral |
| 14 | Leasing enquiry | Neutral |
| 15 | Several credit enquiries | May pose a risk |
| 16 | Credit warning | Negative |
| 17 | Credit agreement with special agreement | Neutral |
| 18 | Credit limit reduced | Neutral to slightly negative |
| 19 | Payment default reported | Strongly negative |
| 20 | Suspicion of fraud | Very heavy entry |
| 21 | Falsification of receipts / falsification of documents | Very heavy entry |
| 22 | Identity misuse | Heavy entry |
| 23 | Credit freeze | Lending practically excluded |
| 24 | Loan cancellation due to payment problems | Strongly negative |
| 25 | Debt reorganisation / restructuring | Negative |
| 26 | Settlement with creditor | Negative |
| 27 | Payment stop | Very negative |
| 28 | Credit fraud confirmed | Heaviest entry |
Which ZEK codes are particularly problematic
Some codes are considered particularly critical and can lead to banks automatically rejecting a loan application.
These include in particular
- Payment defaults
- Collection procedure
- Loan cancellations
- Suspicion of fraud
- Forgery of documents
- Credit freezes
Such entries show banks that there may have been considerable problems with the repayment of loans in the past.
The legal basis for this credit assessment is the Swiss Consumer Credit Act (KKG).
You can find a detailed explanation of these rules here on the Consumer Credit Act Page from credXperts.
How negative ZEK codes affect credit applications
The effects of a ZEK entry depend heavily on the type of code.
Example of effects
| Code Category | Influence on credit |
|---|---|
| Neutral | Credit possible without any problems |
| slightly negative | Credit more difficult |
| strongly negative | Credit often rejected |
| Relevant for fraud | Credit mostly excluded |
A single neutral entry is not normally a problem. It only becomes a problem if there are several negative codes.
When applying for a small loan, a budget calculation is carried out in advance. The bank calculates your monthly income and expenditure. The difference between your income and expenditure determines which loan amount and term are suitable for you.
How long are ZEK entries stored?
A frequent issue with credit enquiries in Switzerland is the question of how long entries in the
ZEK
remain saved.
Many borrowers assume that negative entries are stored permanently. In practice, however, the storage period depends heavily on the type of entry.
The storage of credit data takes place within the framework of the legal requirements of the Swiss Consumer Credit Act (KKG). Banks are obliged to document credit information for a certain period of time so that future credit decisions are based on a realistic credit assessment.
A detailed You can also find an explanation of this statutory credit check here.
Overview of storage periods for ZEK entries
The exact duration depends on the respective ZEK code and the type of entry.
Typical storage periods
| Type of entry | Typical storage period |
|---|---|
| Credit enquiry | approx. 2 years |
| Current loan | during the term of the loan |
| Terminated loan | up to approx. 5 years |
| Leasing contract | during term |
| Rejected loan | approx. 2 years |
| Default of payment | several years |
| Debt collection / debt enforcement | up to 5 years or longer |
| Fraud-relevant entry | Very long storage |
These deadlines serve to give banks a realistic picture of an applicant's credit history.
Why ZEK entries are not deleted immediately
Many borrowers wonder why entries cannot be deleted immediately after a loan has been repaid.
The reason for this lies in the protection system of the Swiss credit market. The database is designed to help banks realistically assess the risk of future loans.
If entries were deleted immediately, banks would no longer be able to track how a person's credit history has developed.
Therefore, information about previous loans or credit enquiries is stored for a certain period of time.
When applying for a small loan, a budget calculation is carried out in advance. The bank calculates your monthly income and expenditure. The difference between your income and expenditure determines which loan amount and term are suitable for you.
Difference between normal and negative ZEK entries
Not every entry in the ZEK is negative.
Many entries are completely normal and arise with every credit check.
Neutral entries
- Current loan
- Leasing contract
- Credit enquiry
Problematic entries
- Payment defaults
- Collection procedure
- Multiple rejected credit applications
These can significantly reduce the chances of a loan being approved.
Example of a credit check with ZEK data
A customer makes a credit enquiry for CHF 40,000.
The bank sees the following entries:
- Leasing contract: CHF 380 per month
- Existing loan: CHF 12,000
- two credit applications in the last six months
This information is taken into account in the budgetary accounts.
If the income is high enough, the loan can still be approved.
You can find out more about this credit calculation here on the Consumer Credit Act Page.
Why many loan applications can be problematic
Many loan applications within a short period of time can be a warning signal for banks.
If a borrower submits several loan applications within a few weeks, this may indicate that several banks have already rejected the application.
In such cases, the risk increases from the bank's perspective.
This is precisely why it is important to make targeted credit enquiries.
With credxperts.ch our experts first check the situation and then decide which banks it makes sense to enquire with.
As we specialise in credit calculations in accordance with the Consumer Credit Act, we can often achieve better results.
You can find out more about this statutory calculation here.
How credxperts.ch can help with ZEK situations
Many banks work with automated credit decisions.
These systems often only take standardised criteria into account.
With credxperts.ch our credit experts analyse each enquiry individually. We check:
- which banks work with certain ZEK entries
- how existing obligations can be optimised
- how the budget accounts can be improved
As we specialise in credit checks in accordance with the Consumer Credit Act, we can often find solutions that would not be possible with a single bank.
You can find out more about the legal basis here
How to avoid negative ZEK entries
A clean credit history significantly increases the chances of being approved for a loan.
The most important rules are
- Do not pay loan instalments late
- Make targeted credit enquiries
- Plan leasing contracts realistically
If you are unsure, you can seek advice first.
Our experts at credxperts.ch analyse each loan application individually.
Check credit options
If you would like to know what credit options are currently available, you can directly request a Credit comparison start.
The application only takes a few minutes.
FAQ - ZEK and Credit Switzerland
What is the ZEK?
The ZEK is Switzerland's central credit database, in which loans, leasing contracts and credit enquiries are registered.
Is every loan reported to the ZEK?
Yes, every consumer loan is reported to the ZEK.
How long are ZEK entries stored?
Depending on the type of entry, data may be stored for several years.
Can I get a loan despite a ZEK entry?
Yes, many entries are normal and do not represent a problem.
Can negative ZEK entries be deleted?
As a rule, entries are saved for a certain period of time and cannot be deleted immediately.
When applying for a small loan, a budget calculation is carried out in advance. The bank calculates your monthly income and expenditure. The difference between your income and expenditure determines which loan amount and term are suitable for you.
Other topics relating to credit checks and loan applications
Consumer Credit Act Switzerland
All legal regulations for credit checks according to KKG.
Calculate creditworthiness
How banks check income and expenses.
ZEK and credit
Significance of ZEK entries for credit applications.
Maximum loan amount
How much credit is possible in Switzerland.
Credit comparison Switzerland
Compare current credit offers.
Apply for a loan
Step by step to the loan application.
Credit application Switzerland
Everything you need to know about the credit application process.