How can I improve my credit rating for a credit application?

“Reputation” corresponds to the quality and consistency of your financial history—that is, how you’ve honored your payment commitments in the past. To improve your reputation, it’s essential to adopt impeccable financial practices that build lenders’ trust. Here are some concrete strategies:

1. Review and Correct Your Credit Report

• Regular Monitoring: Periodically request your credit report from the relevant Swiss agencies (e.g., ZEK or IKO) to ensure every entry is accurate and up to date.
• Error Correction: If you spot mistakes or outdated information (e.g., unrecorded payments or incorrectly assigned delinquencies), promptly request corrections from the agency. A clean report is the foundation of a strong reputation.

2. Honor Your Payment Obligations Promptly

• On-Time Payments: Always settle bills and loan installments by their due dates—punctuality is one of the most valued indicators of reliability.
• Automated Payments: Set up standing orders or direct debits to avoid missed payments and maintain a flawless payment history.
• Budgeting and Tracking: Create a monthly budget and monitor your spending to ensure you always have sufficient funds to meet your financial commitments.

3. Resolve Past Payment Issues

• Clear Outstanding Balances: If you have any overdue accounts or collection notices, pay them off as soon as possible and obtain written confirmation of settlement.
• Negotiate with Creditors: In more complex situations, arrange payment plans or consolidation agreements. Demonstrating proactive problem-solving strengthens your profile in lenders’ eyes.

4. Build a Positive Credit History

• Responsible Credit Use: Use credit cards and overdraft facilities sparingly. A utilization rate well below your limit shows effective financial management.
• Balanced Mix of Credit: Maintaining a variety of credit types (e.g., personal loans, mortgage) and repaying them consistently creates a robust, diversified history.
• Long-Term Commitments: Long-duration loans—such as mortgages or equipment leases—that are serviced reliably over time significantly boost your long-term reputation with lenders.

Key Takeaway Before Your Next Loan Application
Enhancing your reputation means regularly auditing your credit report, making all payments on time, swiftly resolving past issues, and using credit responsibly. These steps build lenders’ confidence in your ability to repay, helping you secure better loan terms. For personalized guidance and targeted dossier optimization, MultiCredit’s advisors are at your service.

An article by Munur Aslan, Director of MultiCredit