Credit Check in Switzerland: What Does Cashare Assess?
Before Cashare grants a loan to a borrower, the platform carefully examines the creditworthiness of the applicant. This credit check is not only a legal obligation under the Consumer Credit Act (KKG), but also protects borrowers from over-indebtedness and investors from excessive default risk.
What Is Creditworthiness?
Creditworthiness describes the ability and willingness of a person or company to repay their liabilities. High creditworthiness means low default risk — and therefore better loan conditions.
In Switzerland, two types of credit checks are distinguished: - Formal credit check: verification of public data (debt enforcement register, ZEK) - Economic credit check: analysis of income, expenses and assets
The ZEK — Central Credit Information Office
The ZEK is a private database in which all consumer loans in Switzerland are recorded. Every credit enquiry, every loan granted and every payment delay is registered there. Like all reputable lenders, Cashare is obliged to consult the ZEK.
What the ZEK contains: - Current and completed loan agreements - Delay notifications and reminder procedures - Credit enquiries from the last 12 months - Information on credit cards and leasing agreements
A negative ZEK entry can make granting a loan more difficult or prevent it entirely. The good news: after full repayment, entries are deleted.
The Debt Enforcement Register Extract
The debt enforcement register is a public register of outstanding debt claims in Switzerland. Each municipality maintains its own register. Cashare requests a current debt enforcement register extract — this shows whether there are any outstanding debt enforcement proceedings or certificates of loss against the applicant.
A certificate of loss means that a debt could not be fully settled. This has a significant impact on creditworthiness.
Proof of Income and Household Budget
Under the KKG, the lender must ensure that the borrower can repay the loan without falling into financial hardship. For this purpose, a household budget is drawn up:
Income: - Net salary (salary slips from the last 3 months) - Other income (rental income, maintenance payments, etc.)
Expenses: - Rent and utilities - Health insurance - Taxes - Living costs (flat-rate amounts according to KKG standards) - Existing loan instalments
The difference gives the freely disposable income. From this, Cashare derives how high a monthly instalment is affordable.
The Cashare Credit Rating A–F
Based on all collected information, Cashare assigns each borrower a credit rating class:
| Class | Description | Typical Interest Rate | |---|---|---| | A | Excellent creditworthiness | from 4.4% | | B | Very good creditworthiness | from 5.5% | | C | Good creditworthiness | from 6.5% | | D | Average creditworthiness | from 7.5% | | E | Below-average creditworthiness | from 8.5% | | F | High-risk creditworthiness | up to 9.9% |
What Improves Creditworthiness?
- Regular income: permanent employment has a positive effect
- No debt enforcement proceedings: a clean register is crucial
- Paying off existing loans: fewer ongoing liabilities = better creditworthiness
- Long period of residence: stability is rated positively
- Punctual payments: no reminder procedures or payment arrears
What Damages Creditworthiness?
- Outstanding debt enforcement proceedings or certificates of loss
- Frequent changes of address
- Many ongoing loans
- Irregular or low income
- Negative ZEK entries
Data Protection and Transparency
Cashare treats all personal data confidentially and in accordance with Swiss data protection law. Borrowers have the right to request information about their stored data.
Conclusion: Transparent and Fair Credit Assessment
Cashare checks thoroughly — but fairly. The goal is not to refuse loans, but to ensure that the loan is sustainably affordable for all parties. A clear, comprehensible rating system ensures transparency and trust.