Credit assessment

Before a consumer credit contract is signed, the lender must check your creditworthiness (KKG, Art. 27a). The law states its aim: to avoid over-indebtedness through a consumer credit (KKG, Art. 22).

You count as creditworthy if you can repay the credit without using the part of your income that can’t be seized, worked out with your canton’s guidelines. The lender must count your actual rent, your taxes and the commitments recorded at the IKO. It must assume the credit is repaid within 36 months, even if your contract runs longer (KKG, Art. 28).

What it means for your loan

A longer term lowers your monthly payment but does not raise the amount the check allows. The lender may rely on what you tell it about your finances, and can ask for your debt collection extract and a salary statement (KKG, Art. 31).