Topping up a loan with the same bank or changing banks - which solution is better?
At some point, many borrowers find themselves in a situation where their existing loan is no longer sufficient. New purchases, renovations or major investments mean that additional financial room for manoeuvre is needed.
In such situations, a crucial question arises:
Should you top up your existing loan with the same bank or should you switch to another bank?
Both options are possible in principle and are frequently used in practice. Which solution makes more sense depends on several factors.
These include, among others:
- Interest rate of the existing loan
- Amount of the residual debt
- Current income
- Creditworthiness
We explain the basic options for topping up your loan in detail on our main page on the topic Top up credit Switzerland.
Increase credit with the same bank
Many borrowers turn to their existing bank first when they want to increase their loan.
This is understandable, as the bank already knows all the relevant information.
A loan can therefore be topped up relatively quickly.
Typical procedure:
- Examination of the financial situation
- Adjustment of the loan amount
- new credit agreement
In some cases, the existing loan agreement can even be adjusted directly.
If you would like to find out more about the various options, you can find more information on our page Increase existing loan a detailed explanation.
Increase credit by changing banks
An alternative option is to repay the existing loan in full and take out a new loan with a higher amount from another bank.
This procedure is often referred to as debt rescheduling.
The process usually works like this:
The new bank takes over the remaining debt of the existing loan and then pays the difference to the borrower.
This solution can offer several advantages.
For example:
- better interest rates
- Longer running times
- higher loan amounts
You can find more information on this on our page Increase credit in Switzerland.
Which loans are particularly good for topping up?
Not only traditional consumer loans can be increased.
Many loan types can be flexibly customised.
Small loan top up
A small loan is often taken out for smaller purchases.
If additional investments become necessary at a later date, this loan can often be increased.
Typical examples:
- Furniture
- Household appliances
- Renovations
You can find more information on our page Options for topping up a loan.
Consumer credit top up
Consumer credit is one of the most common types of credit in Switzerland.
Many borrowers later decide to increase their loan in order to finance additional investments.
This is particularly useful if your income has improved.
You can find more information on our page Have the loan amount increased.
Car loan top up
A car loan can also be increased under certain circumstances.
For example, if:
- a new vehicle is purchased
- Repairs have to be financed
- additional vehicle costs arise
A loan top-up makes it possible to obtain additional funds without having to take out completely new financing.
You can find out more on our page Increase or reschedule your loan.
Further topics on increasing credit
Anyone considering a loan top-up should not only read this individual page, but also compare requirements, current loans, possible amounts and alternatives.
Top up credit with B Authorisation
People with a B permit can also increase their credit.
Banks check in particular:
- Duration of employment
- Duration of stay in Switzerland
- Stability of the employment relationship
If these requirements are met, a loan top-up is often possible without any problems.
Find out more on our page Optimise existing credit.
Top up credit with C Authorisation
People with a C permit often have a particularly good chance of obtaining a loan top-up.
As this residence permit represents a permanent right of residence, banks usually assess this situation in a similar way to Swiss citizens.
You can find more information on our page How to top up your credit.
Example Increase loan same bank
| Situation | Residual debt | New loan amount | Payout | Runtime |
|---|---|---|---|---|
| Example 1 | 25'000 CHF | 40'000 CHF | 15'000 CHF | 72 months |
| Example 2 | 40'000 CHF | 60'000 CHF | 20'000 CHF | 84 months |
| Example 3 | 55,000 CHF | 80,000 CHF | 25'000 CHF | 96 months |
In the case of an increase at the same bank, the adjustment is often relatively quick, as all customer data is already available.
Increase credit vs change bank
| Option | Advantage | Disadvantage |
|---|---|---|
| same bank | Fast processing | Interest rates often remain the same |
| Bank draft | Better interest rates possible | Additional application |
| Credit comparison | more selection | a little more effort |
| Debt rescheduling | Merge several loans | Re-examination |
Example loan comparison with top-up
| Existing loan | Interest rate old | New loan | Interest rate new | Possible savings |
|---|---|---|---|---|
| 35'000 CHF | 7.9 % | 60'000 CHF | 5.9 % | several thousand CHF |
| 50,000 CHF | 8.2 % | 80,000 CHF | 6.1 % | Significantly lower interest costs |
| 65,000 CHF | 7.5 % | 100,000 CHF | 5.7 % | noticeable savings |
A loan comparison can bring considerable advantages, especially for older loans.
Same bank or change banks?
Both variants can be useful.
An increase in credit with the same bank can be done more quickly, while a change of bank often offers better conditions.
That's why it's almost always worth comparing loans.
If you want to get a complete overview of all the possibilities, you should definitely visit our page Top up credit Switzerland read.
FAQ - Top up loan same bank or change bank
Is it better to top up a loan with the same bank or switch to another bank?
Whether a loan increase with the same bank or a change of bank makes more sense depends on several factors. If the existing loan already offers very good conditions, a top-up at the same bank can be a quick and uncomplicated solution. As the bank already knows the customer, the verification process is often shorter and fewer documents are required.
In many cases, however, it is worth changing banks. Other banks may offer significantly better interest rates or more flexible loan terms. For older loans in particular, a loan comparison may show that a new bank offers more favourable conditions. In such cases, the existing loan is completely cancelled and replaced by a new loan with a higher amount.
You can find a detailed overview of all the options for topping up your loan on our page about topping up your loan in Switzerland.
Can I increase my loan with another bank?
Yes, many loan increases are carried out by changing banks. The existing loan is completely replaced by a new loan with a higher loan amount.
The new bank takes over the remaining debt of the old loan and pays it directly to the previous bank. The difference between the old loan and the new loan amount is then paid out to the borrower.
This procedure is often used to increase the loan amount and benefit from better interest rates at the same time.
Is the existing loan automatically cancelled when the loan is increased?
In most cases, yes. When a loan is topped up, the existing loan is replaced by a new loan. This new loan contains the higher total amount.
The advantage of this solution is that the borrower still only has one loan agreement. At the same time, they receive additional capital and can optimise their financing.
Especially when changing banks, the existing loan is always repaid in full.
When is a change of bank particularly worthwhile for a loan increase?
A change of bank is particularly worthwhile if the loan conditions have improved since the original loan was taken out. Many loans are taken out over several years, while interest rates change on the market.
If another bank offers significantly better interest rates, debt rescheduling with a loan increase can bring considerable financial benefits. This not only allows additional credit to be taken out, but also reduces the overall interest costs.
For higher loan amounts in particular, a small difference in the interest rate over the entire term can mean savings of several thousand francs.
Which loans are particularly easy to top up?
Various types of credit can be topped up in Switzerland. This applies particularly frequently to classic consumer loans.
Typical examples are
- Small loan
- Consumer credit
- Car loan
If income has improved or additional capital is required, an existing loan can often be increased without any problems. It is always important that the creditworthiness is still given.
Can I combine several loans and increase them at the same time?
Yes, this procedure is known as debt rescheduling. Several existing loans are replaced by a new loan.
The new loan contains a higher total amount and can provide additional funds at the same time. Many borrowers use this option to simplify their financing.
Instead of paying several loan instalments, there is only one monthly instalment afterwards.
How much additional credit can I get?
The amount of a loan increase depends on various factors. In particular, banks check income, monthly fixed costs and existing obligations.
Creditworthiness also plays an important role. The more stable a borrower's financial situation is, the higher the possible loan amount can be.
In Switzerland, consumer loans of up to CHF 250,000 are generally possible. However, the actual amount authorised always depends on the individual's creditworthiness.
How long does it take to top up a loan with the same bank or change banks?
The duration of a loan increase depends on whether the loan is increased at the same bank or whether a change of bank takes place.
Processing can often be faster at the same bank, as a lot of customer data is already available. In some cases, the process only takes a few days.
If a change of bank takes place, the redemption of the existing loan must also be organised. This may take a little longer to process.
In most cases, a loan increase is completed within a few days to about a week.
Can I top up my loan several times?
Yes, in principle it is possible to increase a loan several times. However, the prerequisite is that the creditworthiness is still given.
Banks re-examine the borrower's financial situation each time a loan is topped up. If income, creditworthiness and fixed costs remain stable, it may be possible to increase the loan again.
Many borrowers use this option to adapt their financing to changing life situations.
When should I not top up my loan?
An additional loan is not advisable in every situation. If your monthly fixed costs are already very high or your income is uncertain, additional financing can be problematic.
Even if the interest rate on the existing loan is already very favourable, it is not always worth changing banks.
In such cases, it may make sense to first carry out a loan comparison or analyse your own financial situation before making a decision.