What is SCHUFA? Simply explained

What SCHUFA actually is

SCHUFA (Schutzgemeinschaft für allgemeine Kreditsicherung) is Germany's largest credit bureau. It collects information about consumers' payment behaviour and provides it to banks, retailers and other companies.

When applying for a credit card, the bank usually checks your SCHUFA score to estimate how likely you are to pay your bills on time.

What data is stored?

SCHUFA stores a range of information about you:

• Current accounts, credit cards and outstanding loans
• Installment payments and leasing contracts
• Mobile phone contracts
• Payment defaults or dunning procedures

The SCHUFA score

The score is a percentage between 0 and 100. The higher the value, the better your creditworthiness. A value above 95% is considered very good.

Once a year you can request a free data copy under Art. 15 GDPR and review your stored data.

How to improve your score

A few simple steps can positively influence your credit rating:

• Always pay bills and installments on time
• Cancel unused accounts and cards
• Avoid too many credit inquiries in a short time
• Have incorrect entries corrected

How to check your own SCHUFA data

Under Art. 15 GDPR you have the right to a free data copy once a year. You can request this directly from SCHUFA — it contains all information stored about you. This free data copy is distinct from the paid credit report: the GDPR copy is free of charge for private individuals.

If you find incorrect or outdated entries, you have the right to request their correction or deletion. Submit a written objection to SCHUFA with supporting documents — for example a payment receipt or a deletion confirmation from the creditor. SCHUFA is obliged to review the entry and correct it if the error is confirmed.

What influences the SCHUFA score

The SCHUFA score is calculated from various factors. Most important are your past payment behaviour, the number of active loans and credit cards, and the length of existing account relationships. Long-standing, trouble-free accounts have a positive effect, while frequent new applications or late payments lower the score.

The mix of products you use also plays a role: a balanced combination of a current account, a credit card and, if applicable, a regularly serviced instalment loan is generally considered more favourable than many simultaneously running credit agreements. The exact calculation method is not public, but these factors give you reliable guidance.