Schufa score is a crucial criterion for obtaining a loan. We explain how to improve your Schufa score to increase the chances of getting a loan. The Schufa score serves as an assessment of your creditworthiness.
The Schufa score is based on complex calculations that Schufa has not fully disclosed. However, some facts about the Schufa scoring are known. With our tips and tricks you can improve your Schufa score and thereby optimize the initial conditions for a loan. First, you should know your Schufa Score:
FAQ about the Schufa Score
What does the Schufa Score mean?
The Schufa Score is a numerical value that describes your creditworthiness in more detail. It is calculated by the credit agency Schufa and forms the basis for many companies when deciding whether to conclude a contract.
The score takes a value between 0 and 100 percent and is based on the data stored by Schufa.
What is a good Schufa Score??
In general, a Schufa Score of 95 is a good value. From a score value of 97, one speaks of a very good credit rating and thus a very low risk of default, as far as payment is concerned.
When is the Schufa Score updated??
The Schufa score is based on the data stored at Schufa for each person. It is recalculated every three months and therefore updated every quarter.
How quickly the Schufa Score recovers?
If you would like to improve your personal Schufa Score, you will need patience. It is recalculated every three months and can improve or worsen.
If a loan is fully repaid, the entry remains for three years. Opening an account or concluding certain contracts will also be reported to Schufa. This information is stored for 12 months.
How do I find out my Schufa Score?
According to § 34 BDSG, every consumer has the right to receive a free self-disclosure from Schufa once a year. Then you can see your score, check your data for accuracy and, if necessary, request a deletion of incorrect data.
Step 1: Request a free extract of your Schufa score
This is important
According to § 34 BDSG, consumers have the right to obtain an extract of their Schufa score from the register free of charge once a year from Schufa. On the website of Schufa you will find a corresponding form, which you need to fill out. Check your Schufa Score as well as the individual data stored about you. If you discover incorrect entries, you should request deletion in order to improve your Schufa Score.
If you want to get regular information about the stored data, Schufa offers online access. You monitor your Schufa score and react as quickly as possible to improve the Schufa score. However, online access is subject to a fee.
Step 2: Have incorrect data deleted – improve Schufa scoring
Once you have successfully paid off a loan, the lender must report this information to Schufa. Unfortunately, some companies fail to report to the Schufa. Your Schufa score worsens as a result. First contact the company in question and request the deletion of the Schufa entry. If there is no reaction, you must inform Schufa about the facts and request deletion.
Improve your Schufa Score quickly
This is important
The Schufa automatically makes deletions for some entries.
A simple credit inquiry deletes the Schufa after 12 months. If you have requested a loan from your bank, an entry will be made in this process. Mail order accounts, telephone contracts and current accounts cause entries. Provided that the process is trouble-free, Schufa will delete these entries immediately after the contract in question has ended. The receipt of a credit card is noted as a Schufa entry. If you cancel your credit card, the Schufa entry must be deleted by the bank.
Have paid-off loans signed out by Schufa
If you have paid off a loan, the deletion about this process takes place three years after the loan has been paid off. Open claims remain in the system for up to four years and have a negative impact on the Schufa score. You should settle open claims as soon as possible, the deletion via this process will then take place after three and not four years.
Tip
For settled claims up to a maximum amount of 2.000 euros you can apply for early cancellation and improve the Schufa score. The prerequisite is that you have paid the amount within six weeks after the Schufa entry. It must not be a titled claim.
Tips for your Schufa Score
Tip 2: Pay claims from court orders to pay Tip 5: Important for maintaining the Schufa score: Use credit-neutral condition inquiries Tip 6: Use the direct debit procedure to avoid open claims
Tip 7: Optimize Schufa Score: Choose the highest possible overdraft facility at your house bank
Tip 1: Pay bills on time
Your Schufa score depends on your payment history. If you transfer bills on time and avoid handing over debts to collection agencies and court orders to pay, your Schufa score will improve in the long term. If you are unable to pay for the necessary purchases in one sum, you have the option of taking out a regular loan. Consider which monthly installments you can pay and choose the conditions for the loan.
Tip
By taking out a loan you avoid unpaid bills and preserve your Schufa score. Credits do affect the Schufa score, but if the installments are paid on time, this is an entry that can be viewed positively. It shows that you pay off loans as prescribed, which amounts to your credit score when the loan is paid off.
Tip 2: Pay claims from judicial dunning notices
If the claims from court orders are justified, you should transfer the amount due immediately. If an enforcement order is issued, an entry is made in the Schufa system. It is a so-called "hard feature", which has drastic effects on your Schufa score. You must avoid legal dunning notices for various reasons. The most important aspect is that open claims can be the beginning of debt.
On the other hand, debts increase due to dunning costs, enforcement costs and many other surcharges. If a court enforcement order is issued, the entry is made in the Schufa Scoring. If the claims from a court order for payment are not justified, you have 14 days to file an objection.
Attention!
You do not have to pay unjustified dunning notices for fear of a negative Schufa score. Therefore, check the claim, depending on the result settle the claim or file an objection.
Tip 3: Make debt rescheduling
If you have taken out several smaller loans, then the calculated score of Schufa is based on these entries. You should consider rescheduling your debt. You use a larger loan to pay off the small loans. At this point, the loans are considered closed and the Schufa score improves. Your credit score is good because you have shown you can successfully close loans. Only one loan is now still open, whose installments you pay on time. Overdrafts on your credit card can cause a Schufa entry. By means of a regular loan you balance the account.
Tip 4: Cancel unused accounts
Banks transmit the opening of an account to Schufa. Your Schufa Scoring includes, among other things, the number of existing accounts. You should therefore open as few accounts as possible. To improve your Schufa Score, you can cancel unnecessary accounts. However, since the exact formulas for calculating the Schufa score are not known, it is not possible to estimate when and to what extent your Schufa score will improve.
Attention!
It is certain that a frequent change of account contracts has a negative impact on the Schufa score value.
Accounts that have been used for many years are positive in terms of Schufa score, provided there have been no disruptions. In case of frequent changes of residence, it is advantageous to maintain accounts with direct banks. You are not dependent on a regional branch, which is why you can continue to use the account after the move and avoid changing accounts.
Tip 5: Important for obtaining the Schufa Score: Use credit-neutral condition inquiries
If lenders make a credit check with Schufa for loans, then this can be done as a credit neutral inquiry. Especially if you request several lenders to compare the offers, this may negatively affect the Schufa score. To preserve the positive score at Schufa, you can use the offers on our mediation portal, you do not have to request different lenders here.
Tip 6: Use direct debit to avoid outstanding debts
If you participate in the direct debit system, make sure you do not forget any bill. The companies debit due payments from your account, regardless of whether you are on vacation or prevented for other reasons. You can improve your Schufa scoring, at the same time you avoid reminder fees. Companies are allowed to forward open debts to Schufa if you have received at least two reminders and there is a period of at least four weeks between the two reminders.
Tip 7: Optimize Schufa score: Choose the highest possible overdraft facility at your local bank
Since overdraft facilities are associated with high interest rates, you should not overdraw the current account. To improve the Schufa scoring, it is advantageous to enter the highest possible overdraft facility with the bank. This is a credit line that is provided to you by your bank. As long as you do not overdraw the account, you do not have to pay interest. Your score with Schufa improves, because the bank transmits the amount of the overdraft facility to Schufa. The confidence of your bank is expressed in a high overdraft facility.
Conclusion
A good Schufa score is important to obtain favorable loans. To optimize your Schufa Score, it often takes a certain amount of time.