It's a question that generally arises for any credit applicant. The right answer to this question, however, needs to be approached from different angles. In this article, Lica explains in detail how to obtain the best conditions for your private credit. After all, who wouldn't want to take advantage of a private loan at the best rate on the market? The answer is everyone! However, to do so, you'll need to meet a number of specific criteria.
The market situation
In Switzerland, the private credit market is divided between around ten companies. There are also a number of private lenders, but as these are very few in number, they will not be considered in this article. It is therefore mainly a private market in which competition is free. However, the Federal Council sets a ceiling on the maximum interest rate to protect consumers. In 2021, the maximum authorized rate is set at 10% for private credits.
In a competitive market, the first step to obtaining a private loan at the best rate will be to play the competition.
To obtain a private loan at the best rate, there are two possible solutions:
- Be an expert in private credit, prepare your file correctly and apply to the various banks on the market. Beware: if you are turned down, your credit application could quickly turn into a nightmare.
- Choose a loan broker with an excellent reputation and let them get you your loan at the best market rate.
In this context, the second option is certainly the most advantageous if you really want to obtain a private loan on excellent terms, and especially if you want to save precious time in research and administrative procedures.
Your personal situation is a key factor in obtaining a private loan at the best rate.
It's certain that a bank won't be prepared to offer you great terms if you're a bad payer. Indeed, a bank won't risk losing its money if it has doubts about your ability to repay. That's why we Lica is always concerned to prepare impeccable financing applications in advance. This sometimes involves a little more discussion with our customers. However, it's the guarantee of always obtaining private credit at the best rate.
Your experience with private credit
It may seem surprising, but banks value customers with whom it is possible to establish a private credit history. A customer who has never had credit could be rated much lower than one who has already had private credit. Especially if the latter has regularly made good monthly payments.
To ensure that your payment history is beyond reproach, Lica systematically analyzes your data in certain registers. In this way, we begin our work on the basis of a documented situation. This makes it much easier for us to direct your request to the right organizations.
Choosing an independent broker
Unlike a bank, an intermediary has a duty to succeed towards his clients. In other words, banks are primarily interested in the quality of the applications they receive. In other words, they are primarily interested in the overall return on the loans they grant. A bank will always prefer security to taking risks by lending funds. The independent broker, on the other hand, will favor the highest possible acceptance rate. In this way, his customers will be happy to obtain credit at the best possible rate whenever possible.
Choosing the right broker is very important ! Some service providers are less concerned with medium- or long-term results, and favor speed over advice. So check the seriousness of your contact before you approach him or her.
Preparing your loan application is key to obtaining the best interest rate.
And yes, there are no miracles! Only the best-presented applications will be accepted quickly and on favorable terms. If you want to obtain a loan at the best rate, follow the instructions of your Lica advisor. He knows how to prepare and submit your application to get the result you want.
When he or she asks you for proof or details of your situation, remember that it's not to annoy you or out of curiosity. At Lica, we take the time to get to know our customers, and we do everything we can to ensure that you can get your loan at the best rate.
An offer too good to be true
We can't stress this enough, but offers such as "Your credit at 0%" or "Your loan without supporting documents" are a scam in 99.99% of cases. No institution would risk losing money by lending it out! There are more and less attractive offers on the Swiss market, but the only way to obtain a loan at the best rate is to use the services of a professional.
Our conclusion for obtaining a private loan at the best rate:
To best summarize our various explanations, here are the three points to remember in order to obtain your loan at the best rate:
- Choose your broker carefully
- Follow his instructions carefully
- Don't multiply your credit applications unnecessarily
With these three principles, you'll have every chance of obtaining the financing you need to realize your projects.
As a neutral, independent service provider, Lica helps thousands of customers every year to obtain credit on the best possible terms. You are welcome to contact one of our managers in the language of your choice to discuss it.