Maximum Credit Amount Calculation
Do you want to make a credit application in Switzerland soon and think about the amount that can be allowed? We advise you and help you to calculate in a simple way the maximum credit amount corresponding to your situation.
Calculation of the legal budget for credit amounts up to 80,000 USD.
The budget criteria are defined according to art. 28 of the Federal Consumer Credit Law (LCC). These only apply to credits below 80,000 USD. Higher amounts are not included in this law, the basic principle of this regulation is to protect consumers from indebtedness. In Switzerland, credits for consolidation can only be realized if they can be easily paid by consumers. For people alone, their wages and expenses are decisive, while families, the couple’s financial situation is taken into account.
The formula for calculating the maximum authorized credit amount is explained in a simple way
Available monthly amount = salary – expenses
Calculation of the maximum amount of the consolidation credit = amount available x 30
A simple example allows to explain the calculation. Let’s take a monthly salary of 6,000 USD and expenses of 5,000 USD for the same period. These values give the following calculation:
Monthly amount available = 6,000 USD – 5,000 USD
available monthly margin 1,000
1,000 USD x 30 = USD 30,000 (maximum credit amount with Interest)
It turns out that for a monthly available amount of 1,000 USD, the acceptance of a maximum debt is 30,000 USD is possible. Thus, even if the longer contract term has been defined, the banking institute must wait a period of 36 months to assess the capacity of indebtedness.
How is the reality?
Even if compliance with the budget calculation is prescribed in the Federal Consumer Credit Law, many banking institutions do not use the margin available.Tristan helps you to optimize your budget and the procedure for applying for a credit.
We calculate your salary by analyzing exactly your financial situation and, if not, taking into account the apprentice’s salary, your wife’s salary, as well as other complementary wages.
On the expenditure side, there are several points that can influence the calculation. Benefit reductions should be mentioned in this context. Under these conditions, you get not only the maximum possible credit, but also the most advantageous interest rate.
Budget calculation for credits over 80,000 USD
If the application concerns a credit greater than 80,000 USD, banks are not required to apply Article 28 of the federal law on consumer credit. The sums that exceed the calculated maximum amount can thus be agreed. However, the creditworthiness of the person making the order is studied in detail.
Possible reason for refusing a credit application: the amount of credit
This can happen if the budget available in your budget is very low. If you submit a credit application that exceeds the maximum amount legally authorized by your bank, the bank must refuse it. Our means of calculation allows us to establish the maximum amount adapted to your financial situation, and this with great precision. We have also studied its solvency so that it does not lead to refusal. This requires an order from the office of poursuites and ZEK. If you currently have one or more poursuites in progress it will be very difficult to obtain a credit. An act of loss of property or loss of wages makes consumer credit impossible in Switzerland.
A comparison of the couple’s wages and expenses allows the calculation of the maximum amount you can receive. For sums up to 80,000 USD, the consumer credit law has determined that the maximum credit amount does not exceed 36 times the amount available monthly (with interest).