The cost of living in Switzerland has always been relatively high. As an immigrant, it can be difficult to establish a financial foothold in the country. That's why foreigners often apply for credit to obtain liquidity. In fact, the Swiss Federal Statistical Office shows that non-Swiss nationals are more likely than Swiss nationals to take out a loan. consumer credit than the Swiss. Even if the procedures are a little more complicated, it's perfectly possible to obtain credit as a foreigner in Switzerland. We explain how in this new article!
What are the criteria for obtaining credit?
A regular income is a prerequisite for any credit application! However, there are a number of conditions that complicate the process, including a loan application when you're a foreigner. That's why it's essential to be aware of all these specificities before applying for credit as a foreigner. In fact, sufficient income is the first condition to be met, but there are many other conditions that must be met. additional factors to obtain a loan. These include nationality, status, work permit and length of residence in Switzerland.
Applying for credit - Different situations when you're a foreigner
When applying for credit as a foreigner, you should be aware that banks establish different profiles based primarily on the residence permit you hold. Here are some examples residence permits that could potentially qualify for a loan:
Depending on the type of license you hold, different banks will have different conditions for granting a loan. To make things easier for you, we've drawn up detailed descriptions for each of these situations.
Obtaining credit as a foreigner with a C permit
If you have a C permit, the conditions for obtaining credit as a foreigner are very flexible! In general, C permit holders are entitled to the same treatment as Swiss nationals. In practice, therefore, all banks agree to grant credit to holders of a C permit.
Here are the minimum requirements for obtaining credit as a foreigner with a C permit in Switzerland:
- Over 18 years of age
- Minimum net income of 3’000.-
- Proof of income
- Not be over-indebted
Of course, other specifics may apply depending on your personal situation. That's why we always recommend taking advantage of services of a knowledgeable intermediary. He or she can help you repair your file and increase your chances of obtaining financing.
Applying for credit as a foreigner with a B permit
If you have a B residence permit, the selection criteria are a little stricter. As a foreigner with a B permit, you can only obtain credit if your permit has been valid for at least 6 months. However, some banks will not grant credit to foreigners with a B permit who have been in the country for less than 12 or 24 months.
Here are the various criteria that must be met to obtain a private loan with a B permit:
- Over 18 years of age
- Minimum net income of 3’000.-
- Proof of income
- Not be over-indebted
- Have held your B licence for at least 12 months
Never apply to several banks at the same time!
Be careful not to apply to more than one bank! This applies to all applicants, but in particular to holders of a "B" driving license, who may be turned down by different banks depending on their own criteria. In fact, as we've seen, some banks won't lend money to holders of a B permit for less than 12 months, or even 24 months at some establishments. If you make repeated applications and are turned down, these will be reported to the Central Credit Office (ZEK) and your chances of obtaining a loan will be reduced.
So take advantage of Lica's services to ensure you get your financing without delay and at the best market conditions. Our experts know how to prepare your file and advise you 7 days a week, free of charge!
Applying for credit as a foreigner with a G permit
The G permit is intended for cross-border commuters. They work in Switzerland, but do not live here. The majority of people holding this residence permit come from Germany, France, Italy or Liechtenstein. To obtain a private loan as a cross-border commuter with a G permit, you must have held a valid G permit for at least 3 years.
As a G license holder, the criteria will be as follows:
- Over 18 years of age
- Minimum net income of 3’000.-
- Proof of income
- Not be over-indebted
- Have held your G licence for at least 36 months
However, some banks systematically refuse applicants with a G license. That's why we recommend that you contact us to make sure you're dealing with the right provider before applying for a loan.
What are the conditions for a legitimation card?
Legitimation cards are reserved for ambassadors, employees of consulates or large NGOs and their accompanying families. Criteria for obtaining private credit may vary from bank to bank. However, the initial criteria are the same as for holders of a C license.
- Over 18 years of age
- Minimum net income of 3’000.-
- Proof of income
- Not be over-indebted
- Specific criteria for each bank
Please note that if you are a diplomat or legitimation card holder, you can only apply for credit if you are domiciled in Switzerland. As many banks in Switzerland do not systematically grant financing to legitimation card holders, it is crucial to use the services of a recognized intermediary to negotiate the best possible terms. A wise broker will be able to put different establishments in competition with each other and thus obtain the best terms.
What not to do when applying for credit as a foreigner in Switzerland
In principle mistakes to avoid when applying for credit are the same as for a Swiss applicant. However, it's always worth remembering a few rules that will help you avoid rejections when applying for a private credit.
Never apply to several banks or intermediaries at the same time
When you make an application, the banks and certain intermediaries register it with the central ZEK file. In the event of a refusal, the application is registered with this central database. In the event of repeated refusals, the next credit application could be rejected on the sole grounds of the previous refusals. That's why we always recommend you to be patient and to not use only one intermediary reputation.
Applying to a bank if you don't meet the main criteria
This may seem logical, but you can easily guess that the only result will be a refusal. If you have any doubts about your application, don't hesitate to Contact us to discuss it with one of our specialists. We can advise you in 12 languages throughout Switzerland.
Falsifying or transmitting false information
In such a situation, you run the risk of not being able to obtain financing for a long time to come. This is because fraud is systematically reported to the ZEK credit registry. Institutions that consult this register as part of a future application will systematically refuse to take the slightest risk if you are the bearer of a «credit card fraud".« fraud code« . So it's a very bad idea to falsify documents or even arrange information about yourself in order to obtain financing. If your situation does not allow you to obtain private credit, take the time to contact us and we'll tell you the best way to obtain financing.
Our conclusion for obtaining credit as a foreigner in Switzerland
When we need money, it can be very frustrating to have to wait or worse to be refused. That's why it's always important to work with a recognized intermediary who will be there to help you obtain your private credit. As you'll have noticed, criteria can vary from one situation and institution to another. Defining the right strategy before submitting your application is therefore crucial to obtaining the financing you want.
Now that you know the various criteria for obtaining credit as a foreigner in Switzerland, take the time to contact our specialists. They will guide you through the process in a neutral and confidential manner.