5 good reasons for taking out a loan
Whether you have a specific wish that you want to fulfil, or you urgently need money or you have some unplanned expenses, taking out a loan is sometimes the best solution in Switzerland.
In that case, we advise you to first contact a broker in order to find the most favourable loan that bests suits your current situation. In the text below, some of the most important reasons for providing money in this way are listed
1. Overcoming difficult financial situations
Around 34% of the Swiss have already taken out a private or online loan in the past, and most of them have done so in order to overcome financial difficulties. Unplanned bills or unexpected expenses for repairs that exceed your budget are one of the main reasons for taking out a loan. For example, if your car is not working and you need it to travel to work, taking out a loan is the optimal solution. Taking out a loan in such cases does not present the most expensive option at that moment: so, for instance, by comparing several offers in the shortest possible period by Miro Kredit AG, you are provided with an overview of loans in Switzerland and, therefore, you can choose an offer that suits you best.
2. Financing studies
It is a well-known fact that investing in education is the most cost-effective. For those younger than 35, it is one of the most frequent reasons for taking out a loan. In most cases, it is CHF 20,000. The advantage of such a loan is that students can focus more easily on learning and, thus, make their paths to the successful completion of their studies easier. Submitting an application for a loan through a broker is recommended in these cases because students often have small incomes.
3. There are no additional costs for loan processing
Many customers are afraid of additional costs if they submit a loan application through a broker. According to Article 34 of the federal law on consumer credits, there is no fee for brokering for a private or online loan and, therefore, there is no reason to worry. Miro Kredit AG, as a broker, does not charge any fees for processing a loan, nor any money before submitting an application.
4. Without negative effects on the credit score
There is one more advantage to brokering when taking out a loan. Multiple submitted applications for a private or online loan and multiple rejections will be registered in Zek, the Central Office for Credit Information, which negatively affects your credit score. Banks are obliged to report any inquiry and any application to Zek, the Central Office for Credit Information. Finally, this may lead to a rejection even though the applicant has a good credit rating. A broker for taking out a loan, on the other hand, first checks the application before forwarding it to the bank.
5. Simple application procedure
Submitting an application for a loan, as well as finding an appropriate loan is very simple, owing to brokers such as Miro Kredit AG. First of all, the clients have a loan calculator at their disposal. By entering the loan amount and the repayment period, you will receive the amount of the monthly instalment and the interest rate of your private loan in a few seconds. By submitting an application, you are required to send several documents, such as: your last payroll. The whole process can be performed online in a short time so you can apply from your home. Then, the broker takes over and sends an offer to the applicant. It is the broker’s task to advise the client about the offer that is the most cost-effective. A broker giving advice to a customer is very significant if one or more loans are being redeemed. Customers who choose a private or online loan can save a lot by combining all the existing debts, such as credit cards.
Experience pays off
Brokers with years of experience in this business, such as Miro Kredit AG, have the appropriate knowledge related to taking out loans in Switzerland. We are familiar with the terms set out by a bank related to the budget and approving a loan and, thus, make it easier for our clients by passing on our knowledge. There are, for instance, banks that do not approve loans despite the satisfactory budget and the good credit rating. For this reason, as brokers, we forward the application to a bank where the client has the best chance of being granted a loan.
We also know how to optimize the customer’s budget and increase the chances of the loan being approved. For example, partners’ incomes are taken into consideration, or the monthly expenses of a customer are accurately specified and, in that way, more money is left for paying the monthly loan instalment. This results in the bank trusting you to pay the loan on a regular basis and it thus approves a higher loan amount, which also implies more cost-effective interest.