Numerous credit brokers offer their services on the Internet and sometimes promise offers at sensational interest rates. Should you use the services of such agencies, also called brokers, or should you contact the bank directly? We have the information on the easiest and safest way to get your cheap loan!
There are different names for companies that broker loans: credit agencies, brokers, credit brokers, credit institutions etc. All denote the same thing: A company that functions as a link between credit banks and private individuals or SMEs. The business model of a credit intermediary is to obtain customer credit offers from several banks and to receive a commission from the relevant bank. Serious credit brokers often work with several banks and know the Swiss credit market well.
Mediation or directly to the bank?
The services of a credit broker are generally highly recommended , but only if it is a reputable provider. Respectable credit agencies have good connections to banks and therefore often receive privileged offers for their customers, which is why you often get the better offers through an intermediary. The advantages of professional loan brokerage are listed here:
- Allows cheaper offers
- Rejection of requests less likely (ZEK code)
- Service is free (banks pay the intermediary)
- Allows comprehensive and neutral advice
Based on the facts mentioned, we recommend going to a credit intermediary. For example, kreditzins.ch is a reputable credit advisor who works with several banks and can therefore find the best offer for you.
Beware of black sheep!
While a serious loan brokerage can bring many advantages to the customer, doing business with dubious “experts” is even dangerous in the worst case! There are two types of dubious providers in the credit area: firstly, “real” brokers and secondly, unscrupulous criminals. Real brokers do broker loans, but they often only work with a single bank and don’t offer clients the advice and brokerage they need. Such business partners usually only contact the bank from which they receive the highest commission. This means that you won’t get any better offers from these credit intermediaries than if you contact the bank directly. We recently wrote a comprehensive article on fraudsters in the lending business.
How to recognize dubious providers
There are several characteristics that distinguish dubious credit intermediaries. In Switzerland, consumer credit is strictly regulated by the KKG (Consumer Credit Act). That is why there are precise guidelines that credit intermediaries must adhere to: for example, credit agencies must check the creditworthiness of each customer and must not charge additional dossier fees. Reputable credit brokers adhere to these provisions, while questionable companies are often identified by the following features:
- Interest rates too low: You should be suspicious of offers that promise suspiciously low interest rates. Real loans below 5.9% interest are very rare.
- Offers “without credit check”: There are simply no serious loans without a previous credit check. By law, each customer’s creditworthiness must first be checked.
- Private individuals: No offers should be obtained from “credit experts” who give money purely privately. The risk of fraud is particularly great in the shady private sector of the credit market!
- No information can be found: Credit agencies that are neither entered in the commercial register nor have a real address and telephone numbers are often fraudsters. It is better not to deal with such providers!
- Foreign providers: Never contact foreign brokers because the strict Swiss law does not affect them. That is why you do not receive any protection and subsequent legal steps are difficult due to foreign legislation.
Let us advise you
The services of a reputable credit broker are advantageous because your request is more likely to be accepted, you will receive better offers and benefit from free advice. Going straight to the bank without an intermediary is the worse choice in most cases. We offer you again the contact to a reputable broker, where you can get cheap and suitable personal loans. We strongly recommend that you use the service of a real loan expert if you want to take out a loan soon!