As family dynamics change, so do the financial challenges households face, leading them to seek suitable financing options. But when it comes to putting together a credit application, cohabiting couples and blended families are faced with some complex issues. Indeed, as it is legally not recognised as a conjugal bond, cohabitating can sometimes pose problems in the calculation of the family budget, which can result in lower amounts for credit applicants. So, how can cohabiting couples and blended families increase their chances of being granted a loan?
The situation as seen by financial institutions
When two people are cohabitating, the budget calculation is similar to that of a single person. Joint expenses are not taken into account, with the exception of rent.
Furthermore, expenses related to children are not shared between cohabiting partners, which can negatively impact the available budget for a credit application.
This approach has its advantages if you prefer to keep your personal situation separate from your financial commitments. But it can also represent a challenge for cohabiting partners wishing to benefit from more favourable conditions for their projects.
Credit application and solvency
Whether you are cohabiting partners or a blended family, your net income must be greater than 2,600.00 CHF if you wish to obtain a loan. But above all, you must not be the subject to any legal proceedings or acts of default on property, nor be listed in the Delta Vista, ZEK or IKO registers.
ZEK codes and entries in the Delta Vista and IKO files can have an impact on your creditworthiness and your ability to obtain credit, especially in cases of payment delays, difficulties with repayments or attempts to deceive the bank.
Cohabiting partners and blended families should therefore ensure that their household is financially healthy and that their financial history is clean before applying for credit.
Our advisors are ready to answer any question you may have by phone: 0848 10 2000
After having worked as a customer advisor at the Banque Cantonale de Genève from 08.1998 to 12.2003, I created CC Crédits Conseils SA, my own financial brokerage firm in 2004.
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What are the credit conditions for cohabiting couples and blended families?
As family dynamics change, so do the financial challenges households face, leading them to seek suitable financing options. But when it comes to putting together a credit application, cohabiting couples and blended families are faced with some complex issues. Indeed, as it is legally not recognised as a conjugal bond, cohabitating can sometimes pose problems in the calculation of the family budget, which can result in lower amounts for credit applicants. So, how can cohabiting couples and blended families increase their chances of being granted a loan?
The situation as seen by financial institutions
When two people are cohabitating, the budget calculation is similar to that of a single person. Joint expenses are not taken into account, with the exception of rent.
Furthermore, expenses related to children are not shared between cohabiting partners, which can negatively impact the available budget for a credit application.
This approach has its advantages if you prefer to keep your personal situation separate from your financial commitments. But it can also represent a challenge for cohabiting partners wishing to benefit from more favourable conditions for their projects.
Credit application and solvency
Whether you are cohabiting partners or a blended family, your net income must be greater than 2,600.00 CHF if you wish to obtain a loan. But above all, you must not be the subject to any legal proceedings or acts of default on property, nor be listed in the Delta Vista, ZEK or IKO registers.
ZEK codes and entries in the Delta Vista and IKO files can have an impact on your creditworthiness and your ability to obtain credit, especially in cases of payment delays, difficulties with repayments or attempts to deceive the bank.
Cohabiting partners and blended families should therefore ensure that their household is financially healthy and that their financial history is clean before applying for credit.
Our advisors are ready to answer any question you may have by phone: 0848 10 2000