How many credit scores do I have
The SCHUFA score: This is how your creditworthiness is assessed
What the SCHUFA score says about your creditworthiness
SCHUFA is a credit agency that collects information on almost everyone in Germany. It is in contact with its contractual partners such as dealers, banks and companies to provide information about the creditworthiness of individual persons. The so-called SCHUFA score is determined for this. It is used to assess your creditworthiness in the future. The higher your score, the better your credit score.
A SCHUFA-internal procedure was developed for the calculation, which determines the risk probabilities. The SCHUFA score is determined based on the stored data of a person, such as the number of payment defaults or credit activities. This will be given to the contractual partner upon request. The score serves as a basis for decision-making and determines the outcome of a loan request.
SCHUFA-Score: Different types
SCHUFA distinguishes between two different scores:
- Base score
- Industry score
The base score is a percentage between 0 and 100 percent. Since there is a probability of death for every person, no one can show the full 100 percent. This value is recalculated every three months. The higher the score, the higher the likelihood that payment defaults will not occur.
The different industries have different requirements for their borrowers. SCHUFA has also recognized this and publishes an industry score. This score is tailored to the inquiring industry, i.e. the score is individually adapted to the industry. Telecommunications companies receive a different score than retail companies.
The secret calculation bases of the SCHUFA Score
SCHUFA is not prepared to publish the basis for calculating the score, as it fears that criminals could influence the score in their favor. For example, the following aspects are probably the basis for calculating your SCHUFA score:
- Registered negative features
- Change of residence
- Lots of credit inquiries
- Account details
- Borrowing such as frequent small loans from mail order companies
Our tip: Avoid frequent credit inquiries
You can partly influence the SCHUFA score yourself. For example, if you are looking for an installment loan, you should make sure that the bank only makes one “request for loan terms”. The reason: Direct credit inquiries are noted at SCHUFA and, if used frequently, have a negative impact on the score result. Our installment loan specialists therefore pay close attention when comparing the various installment loans to only submit a Schufan-neutral condition request.
Data protection at SCHUFA
SCHUFA and its contractual partners are subject to the Federal Data Protection Act (BDSG) for the transmission and storage of personal data. SCHUFA has coordinated its working methods with the supervisory authorities for data protection and thus ensured that your interests or the interests of the citizens are protected. As a private customer, your bank will inform you which data about you is saved by SCHUFA and for what purpose. Your bank will also give you the address of the SCHUFA branch responsible for you.
The SCHUFA clause when applying for a loan
As a customer of a credit institute, you will be asked to sign the so-called SCHUFA clause. By signing, you agree that your data may be transmitted to SCHUFA and passed on to other contractual partners. With this clause you consent to your data being passed on to SCHUFA partners. Specifically, this means: SCHUFA receives information from its contractual partners and this from SCHUFA about you.
If you apply for a loan, be it an installment loan or a construction loan, you will be informed, among other things, that data about non-contractual processing and information from public directories and official notices about you may be stored. A special consent according to the Data Protection Act is not required for the storage of such information.
Regularly request data from SCHUFA
At SCHUFA, data protection is regulated by legal requirements and coordinated with official authorities. That means your data is safe. Nevertheless, you should be aware of the data that SCHUFA stores about you. With a SCHUFA information you can determine this quickly. You can correct incorrect data immediately and thus increase your chance of a cheap installment loan.
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