What is a Schufa Score? [How To Improve It?]

Key takeaways

• Schufa is a credit rating agency. It collects customer data from its partner companies and, in return, shares the stored data with them.
• You have the right to get your data stored at Schufa for free.
• Schufa doesn’t store your data forever. It follows the industry’s guidelines on data retention.
• Factors like timely repayment of bills, loans, credit card invoices, etc., positively impact your Schufa score.
• If you are new to Germany, you won’t have a Schufa entry. Your Schufa entry will be created once you open a bank account or get a telephone contract, utility contract, or credit card. 

This is how you do it

• Review your Schufa score regularly via the Bonify financial platform. The process is digital and free of charge. 
• Ensure that the data stored by Schufa is correct. If not, contact Schufa with proof to correct the information.
• If you are looking for an apartment to rent in Germany, it’s recommended that you use a paid Schufa creditworthiness certificate via meineSchufa.de*.
• Get your data from other credit rating agencies, such as Crifbürgel or Arvato, and ensure it’s correct.

Table of Contents

What is Schufa in Germany?

Schufa is an agency that collects customer data from different companies (contractual partners). The data includes your personal and financial information. 

Schufa, in return, provides this customer data to companies. Companies can use this information to get an idea of ​​consumers’ financial situation, especially their creditworthiness.

Schufa assigns each customer a score based on their loans, bank accounts, credit cards, and other data. Banks, credit institutions, landlords, etc., can use this information to conclude or determine contract terms.

You can also think of a Schufa score as a credit rating. The better the Schufa score, the better your chances of getting favorable contract terms are.

What information does Schufa store?

According to Schufa Holding AG, it has data on more than 68 million natural persons and 6 million companies in Germany [1].

Schufa gets the data from the companies. So it doesn’t have to ask the consumers for their data. However, the companies that pass on the data must inform their customers about it.

Here is the information that Schufa stores. [2]

Personal information:

• Name
• Date of birth and, if applicable, place of birth
• Current and previous addresses
• Your personal SCHUFA basic score

Information SCHUFA gets from its contractual partners:

• Credit cards
• Leasing contracts
• Current or checking account
• Installment transactions
• Current and paid-off loans and guarantees made against the loan.
• Private bankruptcies
• Dunning procedure
• Bounced checks
• Cell phone contracts
• Leases
• Enforcement notices (e.g., arrest warrant, court orders)

SCHUFA has NO information about your:

• Assets and income
• Profession
• Marital status
• Nationality
• Political and religious beliefs

How long does Schufa store your data?

Schufa doesn’t store customers’ data forever. They adhere to the code of conduct agreed upon by the “ Business Credit Agencies.” 

As per this code of conduct, Schufa stores different types of information for different periods.

Type of information	Deletion time
Information about loans	Three years after loan repayment
Information about checking and credit card accounts	Deleted immediately after the company reports contract termination
Credit Inquiries	12 months after request
Credit conditions inquiries (only visible to consumers)	12 months after request
Personal addresses	3 years
Insolvency information	6 months after insolvency or rest debt discharge.
Unpaid or repeatedly dunned claims	3 years after settlement, or earlier if a court confirms deletion. If covered by debt relief, 6 months after relief
Entries from the sanction and PEP lists	Deleted as soon as the name is removed from the official list

SCHUFA also introduced a “100‑Day Rule” in January 2025. This allows consumers to shorten the retention period for a single payment default to 18 months instead of the usual 36 months.

You should meet all these conditions to be eligible:

• The payment default is settled within 100 days of being reported to SCHUFA.
• No further negative entries must occur during these 18 months.
• You don’t have any record in the debtor register.

What information does Schufa provide to companies?

Schufa shares the information it stores in its system with companies. However, companies are more interested in knowing if the customer has any negative features.

For example, canceled bank loans as the customer stopped paying, payment defaults, entries from public debtor registers, etc.

Schufa also shares the credit score (Schufa score). They calculate the score by analyzing your data and comparing it with the data of other individuals.

The Schufa score represents the probability (0 to 100 percent) that the customer will repay the loan. The higher the score, the more likely the customer will repay.

What do you need a good Schufa score for?

Banks and companies ask for a Schufa score to assess your creditworthiness. Here are the most common cases when you need a good Schufa score.

• Applying for a loan (Car loan, personal loan, mortgage, etc.)
• Taking a new credit card
• Shopping online and want to pay in installments
• Cell phone companies, when offering a new phone in installments
• Landlords to ensure the tenant has no residual rent payments

Tips on renting a property in Germany ->

The banks and companies don’t only consider the Schufa score while concluding a contract. They also collect other information from you, like your current income, marital status, etc., while doing the risk assessment. 

How do you get a copy of your Schufa score?

You have the right to obtain the data (yours) stored by Schufa free of charge (Article 15 GDPR). However, you can also get a paid Schufa creditworthiness certificate if you are looking for a rental property.

Order a free Schufa report online

You can apply to get your Schufa report on the Schufa website. You’ll get the report within a month. 

Schufa requires you to fill out the following information to get the report.

• Personal information, such as name, address, etc.
• Upload personal identification documents like a passport, a residence permit, and an address registration certificate (Meldebescheinigung)

NOTE: Ordering the Schufa report has no influence on your Schufa rating. 

You can choose to receive the report by postal mail. Delivery usually takes a few days to a few weeks.

Once you receive the report, you must check the data and ensure that it’s correct. You have the right to have Schufa correct any errors immediately and free of charge.

Get a report from bonify

Since November 2024, consumers can now access more Schufa information via Bonify, a subsidiary of Schufa. You can access your data digitally and free of charge:

• Schufa score
• Notifications for negative entries
• Companies that requested their Schufa data in the past 12 months

It also tells you which contract-related information Schufa stores, such as credit card contracts and installment loans.

You have two options to register with Bonify

Login to your bank account to verify yourself.

Identify yourself by uploading a personal identification document and taking a selfie

Paid Schufa creditworthiness certificate

Schufa points out that the Schufa report contains confidential information that a potential landlord doesn’t need. So, if you want to prove your solvency in rental matters, Schufa recommends a fee-based credit report (29.95 €).

You can order it online at meineSchufa.de*. Then, you can download the digital copy and use it to rent an apartment. 

Paid Schufa subscription

Schufa itself offers a paid online subscription (4.95€ to 9.95€ per month). It includes features such as

• Up-to-date Schufa score
• Real‑time alerts when your score changes
• Digital access to your Schufa score anytime
• Option to request a digital report anytime

Paid services

There are other paid subscriptions and services that also let you get your Schufa report quickly. Some of them even let you get the report instantly.

Companies like ImmobilienScout24, Postbank, and Volksbank offer this option.

 What information does a Schufa report have?

A Schufa report that you get for free from Schufa Holding AG has the following information.

• Personal data: Your current and previous addresses, date of birth, place of birth, etc.
• Credit-relevant data: Data about you that Schufa collected from its partner companies, such as your checking account, credit cards, etc.
• Inquiries from companies: Companies check your data stored at Schufa to assess your creditworthiness or verify your identity. On this page, you can see the inquiries made by different companies over the last 12 months.
• Basic Schufa score: Schufa calculates the basic score quarterly based on your stored data. It serves as a reference for you and is not shared with the companies. A percentage score of at least 95% usually shows that you have a low risk profile.
• Schufa score values ​​transmitted in the past twelve months: In addition to your basic score, Schufa calculates different scores based on industries (credit, telecommunication, etc.). You can see which Schufa score was shared with which company in the past twelve months. 

How can you improve your Schufa score?

How Schufa calculates its score is a trade secret. The Federal Court of Justice decided that Schufa doesn’t have to disclose its calculation method (judgment of January 28, 2014, Ref. VI ZR 156/13 ).

The reasoning behind it is that Schufa doesn’t use the score itself to assess your creditworthiness. It only shares the data with other companies. These companies can use the score however they wish. 

However, Schufa has a score simulator that you can use to simulate your Schufa score based on different situations. This also gives you a hint at what factors affect your Schufa score.

This is how the simulator looks.

We have summarized the factors that affect your Schufa score here. 

• Age of your accounts & loans: A good relationship with your current bank (e.g., old checking account, long-standing installment loan) for years means you are meeting your financial responsibilities. Such a relationship improves your score.
• Too many bank accounts and credit cards: If you have multiple bank accounts and credit cards, your Schufa score will be negatively affected. Multiple credit cards also increase the risk of payment defaults, which can lead to a negative score.
• Bank overdraft: Schufa Holding AG explains that it doesn’t consider the “bank overdraft amount” when calculating the Schufa score. However, if you overdraw the overdraft and the bank ultimately terminates the overdraft facility or your account, it can negatively affect your credit rating.
• Bill payments: Your Schufa is affected by whether you pay your bills on time or not. Moreover, bill payment is not limited to loans or credit cards but also cell phone or utility bills. However, a creditor cannot pass on every default to Schufa immediately. The company must warn you at least twice in writing. Additionally, there must be at least four weeks between the first reminder and the transmission to Schufa (Section 31 Para. 2 No. 4b BDSG new).
• Mortgages: Banks conduct strict credit checks before approving a mortgage application. So, if you have a mortgage, it means you are a creditworthy individual. 
• Loan repayment: Your Schufa score will be negatively impacted if you are unable to pay your loan on time. On the other hand, it will be positively affected if you repay the loan on time.
• Buy now, pay later is treated as a form of credit by SCHUFA. Frequent use of this option can harm your SCHUFA score.
• Age of current address: Frequent address changes are considered a risk indicator in the SCHUFA scoring system. Living longer at a single address signals stability, which is positive for your score.
• Cybercrime: Suppose you are affected by identity theft. The thief buys something online on credit using your personal information. In this case, you won’t know that a purchase has been made, and the creditors won’t get their money. This negatively affects your Schufa rating, even if you did nothing wrong. If this happens to you, you can contact Schufa using this form. You need a police report when submitting the form. You can only know that something like this has happened if you check your Schufa report regularly. This is why requesting and checking your Schufa data annually is critical.

Other credit agencies, such as Crifbürgel or Arvato, also collect your data. You should request copies of your data from these companies and ensure they’re correct.

When do you get a negative Schufa entry?

A low Schufa score is not the same as a negative Schufa entry. These are serious events that immediately lower your creditworthiness.

• Payment defaults: You don’t get a negative entry for missing a payment once. However, a negative entry occurs after two missed payment reminders and after receiving a warning that your missed payment will be reported to Schufa. Your score can only improve once you have paid your debt.
• Completed negative entries: Even after you settle a debt, the entry stays for three years and continues to reduce your score until it is completely deleted. Statistics show that people with a history of payment defaults can default again.
• Insolvency cases: Insolvency proceedings and debtor-register entries count as severe negative events and significantly weaken your Schufa score.
• Debt collection inquiries: If a claim is handed to a collection agency, the agency may request your Schufa file. This inquiry signals Schufa about your non-payment and harms your score.

You don’t always get a notification or report that you received a negative entry. You should always check your Schufa report regularly to monitor potential issues or errors. 

What happens if you don’t have a Schufa score?

If you’re new to Germany and don’t have any financial activity (e.g., open a bank account, take out a loan), Schufa will not have any data about you. This means you’ll not have a Schufa score or entry. 

It’s not the same as having a bad or negative Schufa score. However, this means that banks will not have a basis to assess your creditworthiness, which may lead to 

• Rejection of your application or
• Request for additional guarantees

What can you do if you don’t have a Schufa entry yet?

1. Provide alternative documents if you are asked to show a Schufa report. You provide the following documents.

• Proof of income
• Employment contract
• German registration certificate 
• Bank statements from your home-country bank

2. Use prepaid or debit credit cards: Fintech providers like C24, Revolut, bunq, or N26 often don’t require a Schufa check. You can open a free bank account with these providers and get a prepaid or debit credit card. Making online purchases with these cards helps you build your credit history in Germany.

Best bank accounts in Germany ->

How to open a bank account when you don’t have a Schufa entry? ->

3. Choose services and providers that don’t rely on SCHUFA. 

4. Start building credit to establish a financial record that Schufa can use as a basis. You can do this in many ways, such as

• Opening a German bank account
• Take a mobile postpaid plan
• Apply for a credit card
• Take a loan
• Sign a rental contract

FAQ

References

• https://www.schufa.de/newsroom/bonitaet/schufa-score-25-wahrheiten-berechnung-mehr/
• https://www.schufa.de/scoring-daten/daten-schufa/index.jsp
• https://www.schufa.de/newsroom/schufa/schufa-daten-kommt-daran/
• https://www.schufa.de/newsroom/bonitaet/schufa-score-13-wichtige-faktoren/
• https://www.schufa.de/en/newsroom/press-releases/schufa-data-relevant-creditworthiness-viewed-bonify/
• https://www.schufa.de/en/newsroom/schufa/100-tage-regelung-die-7-wichtigsten-fragen-zur-verkuerzung-der-speicherfrist/
• https://www.schufa.de/en/newsroom/creditworthiness/obtain-schufa-score-credit-report/