What is creditworthiness and what data does Schufa have about me?

What is creditworthiness and what data does Schufa have about me?

Most of us have already heard of Schufa. A Schufa report is necessary, for example, to be able to rent a new apartment. Schufa is a credit bureau. Credit bureaus collect data about you and your payment history. When and where you open an account, when you request a loan, invoice or installment purchase and also if you fail to pay.

The best-known credit bureau is Schufa. But there are also other providers such as Experian or Crif B├╝rgel. These credit bureaus receive data about your financial behavior from banks, online merchants and large billers. For example, a bank is required to report to the credit bureau when you open an account. Online retailers, energy providers, and telecommunications companies, on the other hand, only report to credit bureaus when you don’t pay on time.

What is creditworthiness?

The credit bureaus collect and evaluate all these information. All inquiries and data submitted contribute to your credit score. There are characteristics that have a positive effect on your credit score and characteristics that have a negative effect. For example, an inquiry for an installment is initially a negative feature. However, if you always pay your installments in full and on time, the installment purchase can gradually become a positive feature for your credit rating.

What do the credit bureaus know about me?

You can the information credit bureaus store about you free of charge:

Schufa: https://www.meineschufa.de/index.php?site=11_3&via=menu (Make sure you select the free data copy in accordance with Art. 15 DS-GVO).

Experian: https://www.experian.de/selbstauskunft

Crif: https://www.crifbuergel.de/konsumenten/selbstauskunft/

Boniversum: https://www.boniversum.de/selbstauskunft/

It’s always good to take a look at the data that credit bureaus have stored and know your credit score. Sometimes you discover entries that are mismatched and then you can actively approach the companies rather than waiting until you want to apply for a home loan at some point. Make sure you select the no-cost inquiry when you inquire.

The scores of the individual companies look different: While Schufa works with 0-100 percent, the scale of Experian goes up to 670 points. The higher the score, the better.

Why is my credit score important?

Companies use your credit score to assess how likely it is that you will pay your bills to them on time and in full. The higher this probability is, the more likely these companies are to want to do business with you. A landlord will be more likely to rent the apartment to you if he can be relatively sure that he will receive the rent on time. Depending on your credit rating, you will also be offered various payment options at online stores. If your credit rating is good, you can pay by invoice or in installments. If your credit rating is poor, the merchant will ask you to pay in advance before sending the goods to you. By paying responsibly, you can positively influence your credit score and get the greatest possible flexibility in the long term.