personal loan tips
Loans & Mortgages

11 Tips for Choosing the Right Loan

November 30, 2023 - Benjamin Manz

These 11 important tips will help you choose the right Swiss personal loan.

There are many opportunities to make mistakes when dealing with loans. These tips can help you to avoid those pitfalls.

1. Compare loan offers

Comparing Swiss personal loan offers can easily save you hundreds of francs.

2. Use online loans

Online loans are the cheapest loans in Switzerland. Be aware though, that the best offers are also the most difficult to qualify for. The rule of thumb is that the cheaper the loan is, the stricter the criteria for getting the loan are.

3. Avoid negative entries in your ZEK credit history

Check whether or not you are likely to get approved for a loan from a certain lender based on your creditworthiness. Only apply for a loan if you know you are likely to get it. The reason for this is that if your application is turned down, a negative entry will be added to your ZEK credit history. Having a negative credit history will make it difficult to get loans from other Swiss lenders.

4. Do not apply to many different lenders

For the same reason, you should apply for loans from as few lenders as possible (this applies to actual applications, and not to non-binding information or inquiries). Doing this lowers the risk of unnecessary ZEK entries due to one lender rejecting your claim.    

5. Pay attention to interest rate spans

The cost of a loan from the same lender can vary depending on your creditworthiness. The loan comparison on shows the minimum and maximum effective annual interest rates for each lender. However, you should make your decision based on the actual interest rate that the lender offers to you personally.

6. Repay the loan as quickly as you can

Choose the shortest loan term that is realistically possible. The longer you take to repay a loan, the higher the cost of the loan is. You can simulate this effect using the loan calculator.

7. Avoid getting loans whenever possible

Do you really need a personal loan? Make sure to think twice before you apply for a loan, because loans are very expensive.

8. Pay for your car in cash

While using a personal loan to buy a car is often cheaper than leasing a car, it is still more expensive than saving up and paying for your car in cash.

9. Refinance expensive loans

Refinancing and terminating a personal loan is relatively easy. While lenders charge fees for terminating your contract early, in some cases moving to a cheaper lender can still save you money.

10. Account for the waiting period

In Switzerland, a personal loan is only paid out to you after a 14-day waiting period required by the Swiss Consumer Credit Act. Instant loans are not offered in Switzerland. The money is only transferred to your bank account after the waiting period.

11. Avoid fraudulent lenders

Be wary of fraudulent loan offers. There are many of these circulating on the Internet, including on social media platforms like Facebook. Protect yourself from empty promises (like instant loans) and unrealistically cheap loan offers. Never pay money to purported lenders in advance.

More on this topic:
Compare all Swiss loans now
Swiss loan calculator
What do loans cost?
Online loans explained
What is an effective annual interest rate?
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Expert Benjamin Manz
Benjamin Manz is CEO of and an independent expert on banking and finance.
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