Having Credit Bureau is colloquially equivalent to having at least one negative characteristic. In fact, credit protection is available for almost every inhabitant, mostly neutral information such as existing loans and existing bank accounts.
Debt restructuring is used to replace a high-interest loan with a cheaper loan. It can also be considered if the borrower is dependent on the reduction of the monthly installment and the previous contracting partner does not agree to a desired extension of the loan term.
The practical handling of a debt rescheduling loan
Despite Credit Bureau, consumers can get a loan for a debt rescheduling more easily than a stand-alone loan, since their total burden does not increase. In addition, they have proven their basic creditworthiness by paying the installments incurred so far, regardless of the existing Credit Bureau entry. As it is common for bank information to be requested for debt rescheduling applications despite Credit Bureau, consumers must not be in arrears at any current rate at the time of application. After approval, the new lender largely does not transfer the loan to the customer’s checking account, despite Credit Bureau for the debt rescheduling, but replaces the existing liabilities directly.
Deposits by third parties are not permitted in individual cases – especially in the case of credit card accounts, so that these partial amounts as well as the portion of the debt rescheduling intended for bank account settlement are transferred to the customer account as an exception. If some liabilities, such as a car loan or an installment payment, have a lower interest rate than the debt rescheduling loan, it is actually not advisable to settle them for economic reasons. Most banks, however, require a debt including all liabilities for a debt rescheduling despite Credit Bureau.
Are debt restructuring possible without Credit Bureau?
Although Swiss financial institutions grant Credit Bureau-free loans, consumers can only take out a loan from Credit Bureau for rescheduling through an intermediary, since the federal credit institution only grants amounts of up to $ 3500 directly. When selecting their agent, applicants should ensure that they only charge them an appropriate placement fee and no upfront costs.
In addition, a debt rescheduling, unless it is due to an imperative reduction in the monthly payments, only makes sense if the cost savings are sufficient. In addition to the prepayment penalties that may have to be paid for the early settlement of existing liabilities, the agency commission is also to be recognized as costs.