Creditworthiness and affordability: what does the bank actually assess?

Affordability and creditworthiness answer different questions. Affordability concerns your financial capacity under the applicable rules. The creditworthiness assessment considers how the lender evaluates repayment risk overall. A sufficient calculated budget is therefore important, but does not guarantee approval or a particular interest rate.

Understanding this distinction helps you interpret follow-up questions during the assessment. It also explains why a bank needs more than your salary and the requested amount.

Affordability: can you support repayment?

For cash loans covered by the KKG, repayment must be possible without drawing on the portion of income protected from seizure. The law refers to the subsistence minimum guidelines of the canton of residence and requires further items to be included. Assessment takes place before the contract is concluded. KKG, Art. 27a and 28

The aim is protection against over-indebtedness. Servicing a loan should not mean leaving necessary living costs unpaid. The precise calculation is therefore not a mere formality or simply a multiple of salary.

For cash loans within scope, the assessment uses a 36-month amortisation period even if a longer contractual term is planned. Why this matters is explained in Loan affordability over 36 months.

Creditworthiness: how is repayment risk assessed?

The bank also decides whether the application fits its lending criteria. Employment, income stability, existing commitments and available payment history information may be considered, for example. Banks do not necessarily use the same methods or weightings.

In everyday language, “creditworthiness” is sometimes used as an umbrella term for the entire credit assessment. The distinction still helps make advice clear: a budget problem is different from an unresolved data record or a question about employment.

Cembra, for example, describes its lending as an assessment of personal information under the KKG and internal bank guidelines. This illustrates how legal requirements and additional provider rules work together. Cembra: loan questions and answers

What information does the bank need?

A verifiable assessment starts with correct personal details. Income, household circumstances, expenses and ongoing commitments are then recorded. The supporting documents required vary with the circumstances. An employee with a fixed monthly salary and a self-employed person do not have the same income records.

The KKG allows lenders to request salary evidence and extracts from the debt enforcement register, among other documents. Where financial information is doubtful, its accuracy must be checked using suitable documents. Incomplete or inconsistent details may therefore lead to further questions. KKG, Art. 31

Such questions do not automatically mean rejection. They may be needed to resolve a misunderstanding. It helps to explain changes, such as a new job or a loan already repaid, clearly from the start.

What roles do ZEK and IKO play?

ZEK holds information on credit transactions; IKO is the information office for consumer credit provided for by law. They are different organisations or datasets with different tasks. Neither replaces the individual lender’s decision. ZEK: about us

Existing commitments matter for affordability. An existing record must not automatically be equated with a negative event. What matters is the content and meaning of the stored information, not merely the fact that data exists.

If you doubt its accuracy, you can have your own data checked by the relevant organisation. Use the official access procedures and clarify errors at their source. Obtaining a personal data report alone, however, does not change a bank’s decision. ZEK: information for borrowers and leasing customers

Why is a high salary not enough?

A net salary of CHF 6'000 can leave considerable room in one household while being almost entirely committed in another. Someone with high housing costs, maintenance payments and existing financing starts from a different position than someone with few commitments.

The basis of the income matters just as much. An exceptionally high month says little about the amount reliably available over the coming years. Keep regular income and one-off payments clearly separate.

Our article Calculating a budget for a loan shows how to prepare your starting information without counting costs twice or omitting important items.

Three typical situations

The calculated budget is insufficient. First examine the financing amount or financial circumstances. A better description of the project does not create missing monthly capacity.

The budget is sufficient, but information is unclear. Evidence and a clear explanation can then be decisive. For example, it must be clear whether a declared commitment is still ongoing or has already ended.

The budget is sufficient and the information complete, but the provider declines. This can also happen because the bank has its own acceptance criteria. Statutory affordability does not establish a right to credit. Advice can clarify whether further assessment makes sense, but cannot guarantee approval.

These examples show why a general statement such as “your creditworthiness is too poor” is often insufficient to identify a useful next action.

What can you do to support a proper assessment?

Prepare current documents and record all your commitments. Check that personal details match across documents. If income or expenses fluctuate, explain the variation rather than reporting only the most favourable figure.

When receiving feedback, ask specific questions where possible: is a document missing? Is the amount too high relative to the budget? Is a provider condition unmet? Not every internal evaluation step is disclosed, but concrete questions can still help avoid unnecessary repetition.

Promises to “repair” creditworthiness quickly regardless of your circumstances are not a reliable basis for decisions. Accurate data and affordable financing matter more than a supposed shortcut.

Frequently asked questions

Are creditworthiness and a ZEK record the same thing?

No. A data record is one possible source of information. The lender’s creditworthiness assessment comprises its evaluation of the application and may include other factors.

Does good creditworthiness guarantee the lowest interest rate?

No. The actual price depends on the offer and individual assessment. Compare the complete offer rather than just the advertised minimum rate.

Can an online budget calculator replace the bank’s assessment?

No. A calculator gives an indication using particular assumptions. It replaces neither verification of documents nor the lender’s decision.

Clarify the unresolved issue behind the result

Discuss your circumstances with Budgetcredit. The clearer your income, costs and commitments, the more precisely the next step can be identified.

A positive indication or meeting individual criteria is not approval. Credit must not be granted if it would lead to over-indebtedness.