Credits, dependent children and childcare costs: what should you know?
To what extent does having dependent children influence your credit application, and in particular the budget calculation carried out by the banks? What elements should be considered when declaring the request to speed up the process? Our turn to question.
The fact of having or not dependent children directly influences the calculation of the budget carried out by the banks. When a loan request is made, the banks analyze the applicant’s budget. In other words, we draw up a financial statement which depends on the one hand on income and on the other hand on expenditure. The more positive the budget calculation, the more it improves the applicant’s scoring:
- Improving your chances of having your application accepted
- Allowing you to be offered better loan terms (lower interest rate)
In other words, things like dependent children, child care, allowances, etc. can help modify the budget, and therefore lead to the acceptance or refusal of a request.
When calculating the budget, each dependent child decreases the budget from 300.- to 500.- depending on:
- Age of children
- Number of children
Child care costs also influence credit. In fact, a person who wishes to apply for a private credit must announce, when requesting, all of the regular custody fees:
- Possible costs of the crèche
- Possible costs of a day mother
- Other costs paid for childcare
If the number of dependent children and the costs of childcare reduce the budget calculation, family allowances improve the budget. It is therefore important, when applying for a loan, not to forget to declare the amount of family allowances received, this in order to improve the calculation of the budget!
Many cantons give new parents a bonus for the birth of their child. This unique and exceptional premium is not taken into account for a credit request.
Do not forget to provide supporting documents
In all cases, all information related to children (number and age of dependent children, childcare costs and family allowances) will be requested during the processing of the file. Similarly, supporting documents will in principle be requested in addition to the usual documents requested for a credit request. In order to speed up the processing of the request, it is therefore important:
- Do not forget to indicate the relevant elements for the calculation of the budget
- Attach the supporting documents
This way of proceeding will thus avoid being asked for clarifications or supporting documents, and will further accelerate the processing time of the credit request in order to obtain a quick decision.