What does creditworthiness mean?
Creditworthiness or credit standing indicates the likelihood of customers repaying a loan. Applicants whom the lender deems trustworthy, reliable and “willing to pay” are considered creditworthy. Customers’ financial trustworthiness is examined. This covers payment behaviour history, but also outstanding liabilities and any debt enforcement or payment collection proceedings that are still pending.
Various statistical risk factors are examined as part of the credit check procedure. These include the following:
- Age
- Nationality
- Residency status
- Period of residency in Switzerland
- Frequency of change of place of residency
- Frequency of change of employment
To determine creditworthiness, lenders also contact the Central Office for Credit Information (ZEK) and consult sources such as the debt enforcement register and payment collection companies to obtain further information.