Why you should be interested in the Schufa score
Why is the Schufa Score relevant?
Your creditworthiness is presented by the Schufa Score. Creditworthiness is based on various criteria. Information provided by up to approximately 9,000 contractual partners (for example, banks, leasing companies, mail-order companies or telecommunication providers) is collected to determine it. The data contains:
Personal data such as name, date of birth and address
Information about bank accounts, credit cards and loans (including bank account overdraft conditions)
Ongoing mobile phone and leasing contracts
Accounts at mail order companies
Any other crucial information, such such as insolvency proceedings or due and unpaid claims (e.g. unpaid loan installments)
They influence your Schufa score. Factors such as frequent change of residence, young age, frequent borrowing (for example at mail order companies), possession of many credit cards or many credit inquiries also have a negative effect on your Schufa Score. If you want to take out a loan, mortgage, financing (such as a car), or sign a contract (for example, a mobile phone), the Schufa Score will affect the likelihood of you receiving a positive response. It will also determine the (loan) conditions that are offered to you.
Roger that! What is a good Schufa score?
The general Schufa score can be amount to 100%, which is not realistic (as hardly any individuals have such a good rating) .
A score over 97.5% is a very good Schufa score (= very low risk)
A good score is 95% - 97.5%
With a score of 90% - 95%, there is already an increased risk
A significantly increased risk is connected to a score of 80% - 90% (making it difficult to obtain a loan)
A score of 50% - 80% indicates a very high risk (credit application can be rejected faster and more frequently)
At a score of 50%, the risk is considered to be critical
In addition to the Schufa Score, there are industry-specific tables. These include an assessment of the solvency of individuals. You can get access to these by contacting the Schufa or other sites such as Bonify (link here: https://www.bonify.de/schufa-score-tabellen).
How do I get access to my Schufa Score?
Once a year you can request an excerpt (data copy) of your Schufa score for free (via the Schufa website: www.meineschufa.de). For identification purposes, you need a copy of your ID. Do not use the offer of online providers who charge you about 15 € for this information.
And this is how you access your free report:
Go on www.meineschufa.de
Click on the menu item “Services”, then “Produkte”, and then “Datenkopie”
Note: Choose the right option on the table - the option “Datenkopie” as this one is free (paper copy)
Click on “Jetzt bestellen” and insert your personal data (name, address, date of birth)
How can I improve my Schufa score?
Prevent taking out loans and financings
Pay your bills or installments on time
Close unused checking accounts and cancel unused credit cards
Check each entry for accuracy and delete or correct erroneous entries
Don’t miss out on part 3 of our series: Debt reduction
Written by Clara Creitz
Finelles Founder. Coach and Consultant (UBS, Towers Watson).