Obtaining a loan despite debt collection in Switzerland: your options and opportunities

If the word “debt collection” seemed to close the door to financial support for you, you’ve come to the right place. In Switzerland, the issue of credit is always associated with many question marks, despite debt collection . But there are ways and possibilities to find suitable solutions even in such situations. Our goal is to show you transparently and comprehensibly how you can get your desired loan despite debt collection. Here’s everything you need to know, from the basics to your options and tips on how to improve your chances.

Understanding the basics: debt enforcement, seizure, certificate of loss explained

Swiss legal system

The Swiss legal system offers a structured approach to dealing with unpaid debts, known as debt collection procedures. This section aims to give you a solid understanding of the basics so that you can better understand the impact on your creditworthiness.

Prosecution: A debt enforcement procedure begins when, after several reminders, a creditor takes an official route to claim outstanding debts from a debtor. The debt enforcement office sends the debtor a request for payment. If payment is not made, further steps such as garnishment or the certificate of loss follow.

Seizure: If the debtor is unable to pay the claim, it may result in seizure. In this case, the debtor’s assets are recorded and sold to cover the debts.

Certificate of loss: If the attachment is not sufficient to pay the debt, the debt enforcement office will issue a certificate of loss . This documents the irrecoverable receivables and remains in the debt collection register as a negative note. These entries usually remain visible there for 5 years.

These elements of the debt collection process are crucial to understanding your credit score and your chances of obtaining a loan, especially if you are facing debt enforcement. An in-depth understanding of these processes is the first step in making an informed decision about your financial capabilities in Switzerland.

Now, let’s dive into how debt collection can affect your credit score and what steps you can take to still get a loan from a bank or other loan provider.

The Impact of Debt Enforcement on Creditworthiness

Debt collection in Switzerland as a burden for a woman

Debt enforcement can have a significant impact on your ability to obtain a loan in Switzerland. Understand how banks view debt collection to be better prepared for loan requests.

Taking out a loan in Switzerland with debt enforcement: A realistic scenario?

Despite the challenges of debt enforcement, it is possible to obtain a loan in Switzerland under certain circumstances. Lenders consider several factors to assess risk:

  • Type and age of enforcement: Fresh debt enforcements weigh heavier than older ones, which may have already been settled.
  • Overall picture of the financial situation: Income, other debts, and assets play a role in decision-making.
  • Safeties: The presence of collateral can improve your chances of getting a loan.

How Open Debt Collection Affects Your Loan Application

Open debt collection is a clear signal to lenders that there is a risk. This can lead to the following consequences:

  • Higher interest rates: To compensate for the risk, lenders can charge higher interest rates from people with open debt collection.
  • Strict Conditions: You may be asked to provide additional collateral or to provide a guarantor.
  • Rejection: In many cases, open debt collection can lead to the rejection of the loan application.

The consequences of a completed debt collection for your loan offer

A completed debt collection shows that the debts have been settled, but it remains visible in the debt collection register. Lenders can interpret this in different ways:

  • Positive signal: Paying off the debt can be seen as a positive sign of your ability and willingness to pay.
  • Cautious Assessment: Still, lenders will be cautious and may ask for more detailed information about your financial situation before giving you money.

In this context, it is important that you actively improve your credit score and be transparent with potential lenders about your financial past and present. As a next step, we take a closer look at the role of lenders and what other aspects are taken into account in the credit check.

The role of lenders: What else is taken into account in the credit check?

Pre-Loan Review Process

Lending in Switzerland is a detailed process in which lenders look at various factors to assess the risk of lending. The Consumer Credit Act (KKG) obliges lenders to carry out a comprehensive credit check. A loan without a credit check is actually not possible or not permitted in this context. Here are some key elements that go beyond the presence of debt enforcement:

  • Income and employment situation: Having a regular and secure income is crucial. Lenders evaluate your length of employment and the stability of your source of income.
  • Existing debts and financial obligations: Other loans, mortgages, or alimony obligations affect your ability to carry additional debt. The ZEK codes are also used to check how their payment behaviour has been in the past in this regard.
  • Household budget: Your overall cost of living relative to your income shows how much wiggle room you have for additional installments.
  • Assets: Have you been able to put property, savings or other assets on the side? These can serve as collateral and increase your credit score.

Lenders use this information to make an informed decision about lending. A negative feature such as debt collection can be partially offset by positive aspects in other areas.

Credit opportunities under difficult conditions

Even if there is debt enforcement, there are ways to obtain a loan in Switzerland. Understand the options and strategies available to you.

Applying for a loan with debt enforcement: What you need to know

Applying for a loan despite debt collection requires careful preparation and understanding of your options:

  • Specialized lenders: Some financial institutions specialize in serving customers with debt enforcement.
  • Transparent communication: Be open about your debt collection and explain how you would like to improve the situation.
  • Documentation: Prepare detailed documentation to prove your financial situation and your ability to repay the loan.

Personal loan with debt collection in Switzerland: Special offers and options

  • Guaranties: A guarantor with good credit can increase your chances of getting a loan.
  • Safeties: Offering collateral can also be helpful in gaining the lender’s trust.

Loan with ongoing debt enforcement: A difficult, but not impossible task

  • Targeted choice of provider: Not all lenders are created equal. Some are more willing to work with your situation.
  • Higher costs: Be prepared for the fact that the conditions may be less favorable.

Strategies for borrowing despite debt collection

  1. Optimize personal finances: Create a detailed budget to stabilize and improve your financial situation.
  2. Debt reduction: Prioritize reducing existing debt to improve your credit rating .
  3. Professional advice: Consider seeking debt counseling to find a way out of the financial burden.

FAQ: Frequently asked questions about loans with debt collection

How long does a debt enforcement stay in the Swiss register?

As a rule, a debt enforcement remains visible in the debt collection register for five years, even after it has been paid. This period begins on the date of completion of the debt enforcement. It’s important to know this date because it has an impact on your credit score.

How can I have a debt enforcement deleted?

Under certain circumstances, a debt enforcement can be deleted before the end of the five years, in particular if it was unjustified. You can submit an application for deletion to the responsible debt enforcement office if you can prove that the debt enforcement was unjustly carried out or that the claim has been settled.

Are debt enforcements deleted after 5 years?

Yes, debt enforcements are automatically deleted from the register after five years. This deletion process takes place without any action on the part of the data subject. However, it is advisable to obtain confirmation of deletion from the debt enforcement office.

Who can see my debt collection?

Extracts from the debt collection register can be requested by lenders, landlords and, in some cases, employers, if there is a legitimate interest. You yourself can request an excerpt from the debt collection register at any time in order to check your current situation.

How long is a debt collection visible?

As already mentioned, a debt enforcement remains visible in the debt collection register for five years, unless it is deleted earlier under certain conditions.

How often do reminders have to be sent before debt enforcement?

Swiss law does not prescribe how often reminders must be sent before debt enforcement can be initiated. In practice, creditors usually send at least one reminder, but often several, before starting the debt enforcement proceedings.

Avoiding and coping with debt collection: Practical tips

Of course, the best thing is to avoid debt enforcement. However, should you be faced with debt collection, there are strategies to manage the situation and improve your financial health.

Dealing with Ongoing Debt Enforcement: Strategies for Damage Minimization

  • Open communication with creditors: Talk to your creditors to make possible payment arrangements.
  • Budgeting and financial planning: Create a realistic budget to control your spending and reduce debt.

Unjustified debt enforcement: your rights and options for action

  • To file an objection: In the event of unjustified debt enforcement, you can lodge an objection with the debt enforcement office.
  • Legal support: In complex cases, it may be useful to consult a lawyer.

Have debt collection deleted and improve creditworthiness

  • Proof of debt settlement: Submit evidence to the debt enforcement office that the debt has been paid in order to request the cancellation of the debt enforcement.
  • Improvement of the financial situation: In the long term, you should work on improving your financial situation to increase your credit rating.


Obtaining a loan in Switzerland despite debt collection can be challenging, but it is possible under certain circumstances. By understanding the processes, communicating transparently with lenders, and using available resources, you can improve your chances of getting a loan, even if you’ve had financial difficulties in the past. Always remember that financial recovery takes time and taking steps to improve your financial health is crucial. If you would like more information or advice from our experts, please write to us at info@kredit-vergleich.ch – we will be happy to help you!

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