The Tax-Free Amount is calculated during the credit check based on the procedure required by the Swiss Consumer Credit Act (KKG) from an applicant's income and expenses. See "Credit check". To minimise the risk of over-indebtedness, the law requires that a credit debt can be fully amortised (repaid) within 3 years with the available allowance. The monthly allowance thus determines the maximum tolerable loan amount.
Existing loans, leasing or credit card liabilities must be taken into account when calculating the tax-free amount. As a result, credit increases are often only possible if existing loans are combined under a new loan. Better conditions reduce the monthly costs.