How the personal Schufa score is calculated was long considered completely opaque. Now the powerful credit agency has revealed other criteria that affect creditworthiness.
Anyone who wants to take out a loan or sign a rental agreement will feel the uncanny power of the Schufa. The credit report from Germany’s largest credit agency has a significant impact on how creditworthy you are. How exactly the infamous Schufa score comes about and what data is included was completely opaque for a long time.
In order to counter such criticism, Schufa has been more transparent for some time. It even offers an online tool that you can use to calculate the Schufa score yourself. The most important points that are used for the calculation are also explained there. He now named the Schufa six additional specific features that are included in the calculation. These are:
- Current open balances or insolvency proceedings
- Amount of the monthly installment loan burden
- Age of the oldest installment loan
- Number of debt collection requests
- Number of completed negative reports
- Number of credit card inquiries in the last year
Schufa score: The most important data for the calculation
The score simulator launched last year names seven basic components for calculating personal scores. It also explains what is positive and what is negative about it.
- checking accounts: Customers with whom banks have been working for a long time are considered to be more trustworthy. “The older an account is, the longer and more clearly one has proven that one meets financial obligations. That improves the score,” writes the Schufa. If one has several accounts, however, this can worsen the score, since accounts can be overdrawn.
- credit cards: According to the Schufa, a credit card is a mark of confidence from the bank in the solvency of the customer. “The older the credit card, the longer and more clearly you prove that you pay your bills reliably.” As a rule, using a credit card for a year or more has a positive effect on the score. However, the use of more than two credit cards can worsen the score, as the statistical risk of non-payment increases.
- installment loans: Unsurprisingly, debt is not good for creditworthiness at first. In particular, those who take out several loans in a row in a timely manner worsen the score. However, the repayment improves it again and after paying the last installment, “the score is often better than before the loan was taken out,” writes the Schufa.After all, you have proven yourself to be a good debtor.
- real estate loans: A special feature are real estate loans: According to Schufa, these have a positive effect on the score. Because banks only grant a real estate loan to customers whose creditworthiness they have checked extensively. In addition, there is also the property as security in the event of payment difficulties.
- Online purchases on account: First the goods, then pay: Buying on account is basically a very short-term loan. Anyone who has often bought on account in the past 12 months has to live with a worse score.
- Relocation: Here today, there tomorrow – not good for the Schufa score. Because he honors down-to-earthness. “Statistics show: Recent moves lead to an increased risk of getting into payment difficulties.”
- payment defaults: Anyone who does not pay installments or invoices despite two reminders will receive a negative Schufa entry. Terminated loans and overdrawn checking accounts with overdraft facilities, where outstanding contributions have not been paid, also worsen the score. Insolvencies and entries in debtor directories are also unfavourable. If a reported payment default is settled after all, the negative entry will remain stored at Schufa for three years from then on.
Schufa saves first and last name, date of birth and address and, if applicable, previous addresses as personal data. Personal information on marital status, religion, nationality, salary and assets is not recorded by the Schufa.
However, the credit agency does not provide a complete insight into the Schufa formula. How exactly which data is offset against each other in individual cases cannot be understood from the outside. In addition, Schufa also includes other data that is not mentioned. With the appropriate user approval, she can even gain access to account data via the recently launched Schufa app “Bonify”.
Source: Stern
