The Schufa score is a crucial key figure that influences both consumers and companies. From credit decisions to rental contracts to online shopping financing – the Schufa score plays a central role in the German financial system. But how does it work, what innovations are there, and what can consumers do to improve their score? In this article, you will learn everything you need to know in a concise and easy-to-understand way.
What is the Schufa score?
The Schufa score is a key figure calculated by the German credit reference agency Schutzgemeinschaft für allgemeine Kreditsicherung (Schufa) in Wiesbaden. The aim is to protect companies from payment defaults by evaluating consumers‘ payment behaviour.
Schufa collects information such as credit agreements, account openings, credit inquiries and payment defaults. The score serves as a prediction of how likely it is that a person will meet their payment obligations.
For consumers, the score is a guide and plays an important role, for example, in credit applications, mobile phone contracts or rental agreements. A good Schufa score can open doors, while a bad score can lead to higher interest rates or rejected requests.
Important changes to the Schufa scoring system
Schufa plans to simplify the calculation of scores. Until now, there have been around 50 different industry-specific scores, which are weighted differently depending on the area of application.
In the future, there will be just a single score that replaces the previous industry scores. This change could help consumers to better understand their score, as they will no longer have to distinguish between different industry ratings. However, a single score also presents challenges, as it may no longer be possible to map the specific requirements of individual industries.
Criticism of the Schufa score
Although the Schufa score is an important tool, it has also been criticised. It remains unclear how the individual factors (e.g. number of current accounts or frequent relocations) are included in the calculation. Some consumers are critical of the comprehensive data collection, especially in the case of frequent relocations. This could lead to disadvantages, even though relocations are not necessarily related to financial problems.
Someone who changes their place of residence frequently due to their job could be wrongly categorised as higher risk. Critics are therefore calling for more transparency in the calculation and use of data.
Tips for improving your Schufa score
Consumers can positively influence their score through targeted measures. Consolidate current accounts, as multiple accounts or credit cards can have a negative effect. Avoid reminders and payment defaults, as even small debts can significantly worsen your score. Request your free self-disclosure in accordance with Art. 15 GDPR to identify errors in the stored data and have them corrected. When making credit enquiries, make sure that providers use ‘credit-neutral’ condition enquiries.
Rights and strategies against incorrect entries
There are several legal instruments available to those affected to effectively force credit reference agencies to disclose their data sources. According to Article 15 of the GDPR, data subjects can submit a formal request for information to Schufa, which must include the origin of the data and the recipients of the data. According to Article 16 of the GDPR, incorrect data can be corrected if the inaccuracy can be proven. If Schufa does not respond to a legitimate request, those affected can contact the relevant data protection authorities. In serious cases, specialised lawyers can help to enforce claims for damages or to obtain the deletion of unauthorised entries.
Checking your Schufa score – how to do it
There are various ways to check your own Schufa score. Consumers can request a free copy of their data at schufa.de, which is available once a year. Alternatively, the Bonify app offers free digital access to the basic score. For a fee, consumers can use the MeineSchufa package to get daily insights into their score and notifications about changes.
Dr Thomas Schulte – Your expert for Schufa matters
Dr Thomas Schulte, a renowned lawyer from Berlin, specialises in providing legal support to consumers and companies in Schufa matters. With years of experience in data protection law and in representing clients in dealings with credit reference agencies, Dr Schulte offers comprehensive advice and effective solutions for all matters relating to Schufa.
Dr Schulte understands that each case is unique. Whether it is a matter of incorrect credit entries, unjustified claims or improving credit ratings, he develops tailored strategies that optimally represent your interests. If you are affected by negative or unjustified credit entries, he can help you to legally challenge them and have them deleted. In many cases, he achieves positive results for his clients within 1 to 3 weeks.
If necessary, you can rely on competent legal representation in court. Dr Schulte will enforce your rights, especially in the case of claims for damages due to incorrect entries or data protection violations.
In addition to solving problems, Dr Schulte also offers preventive advice so that you can better manage your credit rating in the future.
With over 20 years of legal practice, Dr Schulte is familiar with the challenges and pitfalls of dealing with Schufa. Through efficient working methods and close cooperation with experts, he often achieves sustainable success in a short period of time. Dr Schulte places a high value on personal and trusting support, so that you are always informed about the progress of your case.
Contact Dr Schulte
Don’t let Schufa entries block your financial future. Dr Schulte and his team are at your service throughout Germany – whether in Berlin, Hamburg, Munich or Frankfurt. Arrange a consultation appointment now by calling +49 (0) 30 – 22 19 220 20 or emailing dr.schulte@dr-schulte.de. You will find the office at Malteserstraße 170, 12277 Berlin.
Frequently asked questions about the Schufa score
What is a good Schufa score? A Schufa base score above 97.5% is considered excellent. Scores below 80%, on the other hand, indicate an increased risk. Does Schufa decide on loans? No, Schufa only provides information. The decision on a loan is made by the respective company. How long are entries stored? Entries such as loans or payment arrears are usually deleted after three years.
Conclusion:
The Schufa score remains a central instrument in finance, both for companies and for consumers. The planned changes could lead to more transparency, but criticisms such as the lack of transparency in the weighting remain. Consumers should regularly check their score and consciously take steps to optimise it. You can sustainably improve your credit rating with simple measures such as adhering to payment deadlines or consolidating accounts.
Schufa Compensation from banks for incorrect credit agency reports
1. Schufa tips and legal advice:
Find out more about your rights with Schufa
2. Contesting Schufa entries:
How to delete unauthorised Schufa entries
3.Data protection and Schufa:
Everything about data protection and Schufa in Germany
4.Credit rating improvement through legal help:
Tips and tricks to improve your Schufa score
5.Contact Dr Schulte: