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Anyone with a bad Schufa score can have a hard time in everyday life. An expert explains how to keep your financial record as clean as possible.
Frankfurt – A loan can help some consumers to get out of a financial predicament. Worries about insolvency can be eliminated all at once, and the costs are spread over a longer period of time. But those who have already struggled with money problems often do not even get a loan from the bank. The reason for this may be a bad Schufa score. How do you escape the financial dilemma?
Accounts, credit cards and cell phone contracts: These things are relevant for the Schufa score
The Schufa score is intended to help banks and companies assess whether customers can meet their payment obligations. The consumer advice center states in a statement: “The calculation of a consumer’s alleged risk is carried out by assigning them to a comparison group with identical characteristics.” In the past, the process has been repeatedly criticized by consumer advocates as being non-transparent.
Schufa provides companies with information on how likely consumers are to make reliable payments. © Andreas Arnold/dpa
The characteristics apparently include the number of accounts, credit cards and mobile phone contracts as well as current loans, their duration and the number of mail order accounts and changes of address. A Klarna account can also influence your Schufa scoreFactors such as place of residence, occupation, income, gender, age and marital status are said not to be part of the decision-making data. A Schufa score of 100 possible points is possible. Schufa divides consumers into five categories:
- Unsatisfactory (up to 29.99 percent)
- Sufficient (up to 85.88 percent)
- Acceptable (up to 93.53 percent)
- Good (up to 97.21 percent)
- Excellent (from 97.22 percent)
Schufa has “greatest influence on consumers’ everyday lives”
Three quarters of all people stored are to be assigned to the best class. Stephanie Pallasch from Stiftung Warentest explains in an interview: “First of all, it is important to know that there are other credit agencies besides Schufa. However, Schufa is the one with the most stored data and therefore has the greatest influence on the everyday lives of consumers.”
According to the expert, the Schufa score should not be the sole reason for a business decision. Companies may only use the score as one of several sources. This is also evident from a ruling of the European Court of JusticeHowever, with a bad score, many consumers face worse contract conditions.
Expert gives tips to prevent bad Schufa score
The expert also explains what people can do to prevent a bad Schufa score: “It is fundamentally important that you do not have a negative Schufa entry – for example due to unpaid bills.” In addition, the data should always be up to date. “If an outstanding debt is settled at some point, a current account is closed or an installment loan is paid off, the corresponding entries should no longer appear in the Schufa.”
In addition, those affected could reconsider unnecessary checking accounts and credit cards. “One or two still have a positive effect on the score, but more of them have the opposite effect.” The longer a business relationship exists, the better it will affect the score. However, the score “cannot be actively manipulated,” says Pallasch.
