Is credit score good or bad

SCHUFA score: What does it mean and when is it good?

What is the SCHUFA score?

The SCHUFA score is calculated by SCHUFA and is intended to reflect your creditworthiness and the statistical probability with which you will service a loan. For this purpose, SCHUFA collects data from consumers and evaluates them. It receives its information from around 9,500 contractual partners. This includes:

  • Banks and savings banks
  • Leasing company
  • Mail order company
  • Telecommunications provider

In addition, SCHUFA collects data from public debtor registers and other public announcements. On the basis of the collected positive and negative entries, SCHUFA calculates the SCHUFA score for the evaluation. This value is between 0 and 100. The higher the SCHUFA score, the higher the creditworthiness of a person.

What is rated positively for the creditworthiness score?

Entries via a current account, mobile phone contracts with a term, leasing contracts, installment loans or mail order accounts are generally considered positive entries - to a normal extent. They indicate that banks and companies place their trust in you and consider you creditworthy.

What is rated negatively for the creditworthiness score?

If you do not have a current account, the SCHUFA score will be set lower to be on the safe side. SCHUFA also rates multiple current accounts and frequent account changes as negative. The same goes for credit cards: one or two credit cards show that providers consider you creditworthy. Too many credit cards, on the other hand, lead to a lowering of the SCHUFA score. The use of the partial payment function of credit cards can also have a negative impact on the SCHUFA score. Loans or accounts canceled by the bank, payment defaults, dunning procedures or entries in public debtor registers also have a disadvantageous effect.

You should be careful with credit inquiries. The SCHUFA score can get worse due to credit inquiries: Here the bank immediately makes a SCHUFA inquiry, which is then also noted in your SCHUFA data. So if you want to find out more about the conditions from various banks, you should first make only one request for conditions. Only when you have decided on an offer is the official loan request made. Incidentally, the contractual use of the overdraft facility has no influence on your SCHUFA score. The bank will not report to SCHUFA whether a consumer makes use of the overdraft facility.

Good to know: One hears again and again that a poor residential area would have a negative effect on the SCHUFA score. SCHUFA may actually use geographical data. According to its own information, it only includes geodata in the calculation if no other information is available about a consumer. What consumer advocates, however, consider to be certain: that frequent changes of residence have a negative impact.

How is the SCHUFA score determined?

If you want to open an account or lease a car, the contract usually contains a SCHUFA clause. By signing the contract, you agree that your data may be transmitted to SCHUFA. For mail order companies, the SCHUFA clause is usually included in the general terms and conditions, which you must agree to before placing an order.

An entry at SCHUFA is also created if you:

In addition to personal data such as name, date of birth and address, SCHUFA also stores information on the duration of loans, payment defaults and early terminations. In addition, the credit agency can obtain information on cell phone contracts, leasing and installment contracts. All of this flows into the credit rating. The SCHUFA rating also takes into account if your credit card is withdrawn or your current account is terminated by the bank. SCHUFA learns how punctually and reliably you settle your bills and whether claims had to be dunned multiple times. If you take on a guarantee, this will also be recorded by SCHUFA.

Already knew? Consumer advocates discuss how meaningful the SCHUFA score really is: Many factors that are relevant to a person's creditworthiness are not taken into account in the value. For example, SCHUFA does not have any information about a person's income or any assets they may have.

What is a good SCHUFA score?

Basically, the higher your SCHUFA score is rated, the better your creditworthiness is. However, it cannot be said which exact value you need in order, for example, to conclude a mobile phone contract with a certain provider. Each company decides for itself which criteria must be met in order for a contract to be concluded. In any case, a good credit rating increases your chances of a contract being concluded. And the higher your SCHUFA score, the better the terms of your contract can be: A good financial starting position has a positive influence on the interest that is offered to you for an installment loan, for example.

How much does an installment loan currently cost? Find your best offer in our loan comparison!

What is the SCHUFA base score?

Strictly speaking, the SCHUFA score consists of several individual values. For your self-assessment, the so-called SCHUFA base score serves as an orientation value: Its value is between 0 and 100 and corresponds to the percentage probability with which you can settle your loan in accordance with the contract. It is recalculated every quarter. The table shows you how to read the value with regard to your creditworthiness:

SCHUFA base score table

Score valuerating
> 97,5 %very low risk
95 % - 97,5 %low to manageable risk
90 % - 95 %satisfactory to increased risk
80 % - 90 %significantly increased to high risk
50 % - 80 %very high risk
< 50="">very critical risk

A SCHUFA score of 97, 98 or 99 is accordingly considered very good, a SCHUFA score of 95 as good.

What is the SCHUFA industry score?

However, a good base score alone is not very meaningful. The industry score is more detailed and specific. SCHUFA determines it for various branches of business, for example:

  • retail trade
  • Online mail order business
  • Banks
  • Small business owners
  • freelancer
  • property

The industry score can vary greatly from industry to industry. After all, the fact that you have paid for your new cell phone in one fell swoop does not mean that you can reliably afford years of real estate payments.

The scale of the industry score also differs depending on the industry. Usually the highest value is 9,999 points. For auto and direct banks, however, the maximum value is 1,000 points, for example. Depending on how many points are calculated for you, you will receive a SCHUFA rating from A (very good) to M (bad).

With a SCHUFA rating of A, there is only a default risk of around 0.85% - so you are a welcome borrower. A SCHUFA rating of M in the industry score means that you can only pay off the loan with a probability of 65%. Here one will hesitate for a long time. Ultimately, however, the decision rests with your respective business partner. If SCHUFA lists not only positive but also negative entries for you, the rating can also fall to N, O or P, depending on the industry. Then you have worse starting conditions.

How can I find out my SCHUFA score?

According to Section 34 of the Federal Data Protection Act, you have the right to know which data SCHUFA has saved about you. You can therefore request a free data overview once a year. We explain exactly how this works on our SCHUFA self-assessment page.

How can I correct the SCHUFA score?

It can happen that the SCHUFA data is incorrect or, contrary to the rule, older entries have not yet been deleted. Then it is your right to have the relevant entries corrected, deleted or blocked. It is best to explain the facts in writing, enclose copied documents as evidence and contact:

SCHUFA Holding AG
Private customer service center
P.O. Box 103441 in 50474 Cologne

While your case is still being examined, your corresponding SCHUFA data cannot be viewed by third parties.

Who can access the SCHUFA score besides me?

Regardless of whether you conclude a mobile phone contract, change your electricity provider or want to lease a car: As a rule, the respective provider will first obtain SCHUFA information about you. Potential landlords also increasingly insist on self-disclosure in advance. In addition, companies like eBay check your identity via SCHUFA before you can create a user account. This is to verify that the users are real people and not fake profiles of fraudsters. If SCHUFA does not receive any personal data, you may not be able to register as a user.

What does the credit score influence?

The SCHUFA score can influence the conditions on which you are granted a loan, for example. An insurance company may also not want to enter into contracts with you. Due to a bad SCHUFA benchmark, you may have to pay higher interest at the bank - or you may not even get the loan. Mail order and online retailers usually decide which payment options to offer customers based on value. Consumers with a poor SCHUFA score are also less likely to have the option of buying on account. In addition, the application for a checking account could be rejected.

How quickly does the SCHUFA score recover?

How long it takes for the SCHUFA score to rise has to do with the legal requirements for deletion. Some of the data recorded by SCHUFA will be deleted after a certain period of time:

Overview of deletion periods for SCHUFA data

 SCHUFA deletion period
Information about loans3 years after repayment
Credit inquiries12 months after the request
Inquiries about credit terms12 months after the request
Information about checking and credit card accountsAfter the account has been closed
Company inquiriesNo later than 12 months after the request
Information about behavior not in accordance with the contract (e.g. default in payment)3 full calendar years to 31.12., In the case of unfinished business at the end of the 4th calendar year. In the case of titled claims, data can be stored longer.
Data from debtor registers of the local courts3 years. Premature deletion upon proof of deletion by the local court
Customer accounts with dealers3 years
GuaranteesAfter repayment of the main debt
Undisputed false informationAt any time

FAQ on the SCHUFA score

Do you have any questions about the SCHUFA credit rating? You can find more answers here.

  • How does unemployment affect the SCHUFA score?

    Not at all. Unemployment has no direct influence on the SCHUFA score. The credit agency does not record the professional situation of the consumer. However, if there is a delay in payment or default due to a lack of income, your rating will deteriorate.

  • Does a company bankruptcy affect the private SCHUFA?

    In the event of the insolvency of a partnership, the consumer is liable with his own assets. In this case, the private SCHUFA score also deteriorates. It looks different with a corporation: Here the company is an independent, legal person and thus legally separate from the private person. In exceptional cases, the insolvency can still have a detrimental effect on the private SCHUFA score.

  • Does the SCHUFA score have an impact on international business?

    International companies have the option of querying the SCHUFA score and taking it into account when assessing a consumer's creditworthiness. Whether the respective company makes use of this is up to him and would have to be inquired of himself.

  • Will I get a loan despite a low SCHUFA score?

    If the banks do not give you a loan because of your bad SCHUFA score, there are also providers who grant loans without a previous SCHUFA check. Due to the greater risk for the provider, however, you must expect much higher interest rates and fees in such cases. Before you decide on a loan without SCHUFA, it is advisable to carefully check the small print in the contract documents.

In the case of incorrect entries, SCHUFA should clarify the error directly with the relevant company and correct it as soon as possible. Should SCHUFA refuse to delete or correct incorrect or outdated entries, you can contact the following arbitration board:

SCHUFA ombudsman
P.O. Box 5280
65042 Wiesbaden