What does schufa do? 10 things you need to know about schufa.

10 things about Schufa

You have certainly already come into contact with schufa without knowing it. If you apply for a loan, the bank will obtain a schufa report. It checks your creditworthiness. Schufa stores your data on your payment history for loans and contracts, such as rental or telephone agreements. As a german citizen, you serve as a data source for schufa. Would you like to know what schufa has stored about you?? Then you can request a self-disclosure from schufa free of charge. You can find out how to obtain information from schufa free of charge and other tips worth knowing about schufa in our news article.

Schufa – germany's best-known credit agency

What does the schufa? It is not a public authority like the tax office, but a private-sector company and germany's best-known credit agency. A credit agency is a company that collects data about consumers to assess their creditworthiness and provides information about it. In addition to schufa, there are three other major credit agencies in germany: burgel, creditreform and infoscore.

The schutzgemeinschaft fur allgemeine kreditsicherung, as schufa is called in full, has its headquarters in wiesbaden, the capital of the german state of hesse. It collects a large amount of consumer data. It does this to inform its numerous business partners about possible payment defaults.

Would you like to know what data has been collected about you? Then you should apply for a free self-disclosure at schufa. If you want it fast, you can view your entries online by paying a fee. Even schufa makes mistakes. If you take a look at your schufa register, you can help to correct these errors.

#1. What data schufa collects and who gets this information?

The most important credit agency in germany collects a range of personal data from consumers. In addition to name, date of birth, place of birth, gender, and home address, this includes information on:

  • Cell phone contracts,
  • Bank accounts and credit cards,
  • Payment in installments, for example for loans,
  • Leasing contracts,
  • Guarantees,
  • Possible payment delays.

Schufa collects this data in order to pass it on to its business partners. Business partners are banks, collection agencies, leasing and telephone companies, mail order companies and online shops. They pay a fee to obtain a schufa report on the payment history of their potential customers and protect themselves from non-payment.

#2. How does schufa get the data?

Schufa not only provides data to its numerous business partners when you as a consumer, for example, apply for a loan or want to buy a cell phone with a contract. The well-known credit agency also obtains data from business partners. As a customer of these business partners, you must give your consent for the data to be deposited with schufa.

If you do not do so, the contract is not concluded in the first place. If you make an application for a loan online, you must click on the "consent to schufa". In order to know what has been stored about you, you are entitled to a self-disclosure free of charge at schufa.

#3. How and when can you obtain information from schufa free of charge??

Once a year you have the opportunity to view your stored data free of charge. Request for your free schufa information the "data copy (according to type. 15 DS-GVO)" to. To do this, fill out the form with your personal data and upload your ID or passport before sending it.

After processing, you will receive a document from schufa by mail with all your entries. Only this information is free of charge. All other information is subject to a fee. Check the information thoroughly. If you discover an error, you can request deletion immediately.

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#4. How long will your data be stored?

Different time periods apply to the storage of your data. Entries are deleted when the legally permitted terms have expired:

  • Information about inquiries – after one year,
  • Credits after the year of repayment – three years,
  • Credit cards – three years after the end of the business relationship,
  • Credit cards – three years after the end of the business relationship,
  • Information about debts due – three years after repayment,
  • Data on unpaid debts due – after four years,
  • Information on opening of consumer insolvency – after six full years.

#5. What types of inquiries lead to entries?

When you request a loan from a bank or credit broker, the bank inquires about your creditworthiness with a credit bureau. The most requested credit agency is schufa. A distinction is made between two types of inquiries. Depending on the type of inquiry the credit institution makes, this has different effects on your schufa score.

A credit inquiry is stored at schufa for 12 months. It can also be viewed by third parties for 10 days. Inquiries of this type lead to a worse credit rating. This is especially the case when several credit inquiries are made.

In contrast, a condition inquiry has no effect on your credit rating. It does not affect your schufa score, nor can it be viewed by third parties. Therefore, when making a credit inquiry, always point out to your partner that he or she is making a credit-neutral condition inquiry. Because only then can you ensure that the request has no negative consequences for your creditworthiness. The following graphic compares both types of inquiries and their characteristics.

#6. What influence does the schufa have on the granting of credit??

Without a schufa report you will not get a loan in most cases. To be sure that no false data about you have been stored, you should request a free report from schufa. If you want to apply for a loan, the bank should make a condition request to schufa, which is neutral for your credit history. In response, the bank receives your schufa score. Your chances of getting a loan are better the higher your schufa score is. This can have a positive impact on the interest rates on the loan.

Don't pay your rent or loan installment on time, get a negative record. It doesn't matter how much you're in arrears for. If, on the other hand, you pay off a loan on time and in accordance with the contract, you will receive a positive entry. In reminders you are pointed out to negative schufa entries. Such entries cause problems especially if you want to conclude a contract. The contract may then not materialize.

#7. What does the schufa score look like?

The schufa score is calculated by schufa and expressed in a value between 0 and 100. In principle, no one gets a schufa score of 100%. With a schufa score of 95 percent, you already have a very good credit rating and thus a good chance of getting a loan.

Based on your payment history in the last three months and your past behavior, a basic score is formed. Based on your payment history, they determine the likelihood that you will meet your obligations. Exactly which values are used for this remains a secret of schufa. The schufa score can z. B. Be negatively affected by frequent account changes, multiple credit cards or unreliable payment behavior.

#8. How to participate in the accuracy of your schufa data?

You can obtain information from schufa free of charge if you submit an application. If you want to view your data online, you have to pay a fee for it. Schufa argues that german citizens have a duty to cooperate. Everyone shares the blame if their stored data is incorrect. In their own interest, every consumer should work to ensure that their data is correct.

Schufa's business partners also bear responsibility when it comes to deleting stored data. The bank must report, for example, if a loan was paid off years later. However, there is often a lack of cooperation from business partners. Therefore, you should not be afraid to request information from schufa free of charge and, if necessary, apply for the deletion of incorrect entries.

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#9. What causes errors at schufa?

Schufa is not always to blame for false entries. Request information from schufa free of charge, you can determine whether the entries about you are correct. What does the schufa? It collects data, but is not responsible for checking it. It does not delete data on its own initiative. Errors and misreporting are due to the behavior of business partners who pass on data about you to schufa.

#10. Are there also credit without credit history?

There are credit-free loans, but you can apply for such loans only in limited amounts. In germany, installment loans and earmarked financing are generally not granted without obtaining information from schufa.

A good alternative is a loan from abroad, as foreign credit institutions do not access schufa data. Strict conditions apply to such loans.

If a loan with schufa is once not possible, we at duratio have excellent possibilities to refer you to a bank from abroad.