Schufa Introduces Warning System to Prevent Identity Fraud and Improve Creditworthiness

As a consumer, you have the opportunity to obtain your Schufa self-assessment once a year free of charge. But let’s be honest, how often do we really do it? Probably only when we really need it, for example when renting a new apartment or applying for a loan. However, you would only find out whether you had previously received a negative Schufa entry if you requested the self-assessment. This can also be unjustified, for example when fraudsters order something online in your name and do not pay for the goods. Schufa wants to change this scenario in the future with a warning system. However, you have to register with the Schufa app Bonify.

Identity fraud is to be prevented with the warning system

Identity theft can happen to anyone, so consumers need to be protected. The Schufa wants to warn consumers of a negative entry in the future. This free data query should be available by the end of the year and can therefore be tested without risk. The only disadvantage: you have to register with the Schufa app Bonify, where you have to enter personal data again.

In 2024, creditworthiness should be improved through account inspection

The fact that the consumer can allow Schufa to look at the bank account has met with a lot of criticism. The Finanzwende association fears that Schufa will become even more powerful. It is said that this service is voluntary. However, every customer will probably use this service if the credit rating is improved and a loan can still be granted.

Problem with the non-transparent Schufa score

You certainly assume that if you always pay your bills on time, you automatically have a good Schufa score. This is true in many cases, but not always. Factors also play a role over which you have only limited influence. This can be the case, for example, that you have moved several times in your life or have two bank accounts. If the Schufa now also has an insight into the bank account, other factors could be included in the assessment of creditworthiness. The association Finanzwende therefore demands that the Schufa should clearly state which factors are included in the Schufa score and with what weighting.

Consumers should be informed about negative entries in the future

Since we often order online these days and enter personal data, identity theft can quickly occur. The new Schufa service wants to prevent this and notify the person concerned in good time about a negative Schufa entry. Since unauthorized Schufa entries can be deleted, affected persons should react in good time and report it to the police. This can prevent identity misuse or reduce the damage. This service will be free of charge until the end of the year. Whether it will cost anything afterwards remains to be seen. The only catch: you have to register your data with the Schufa app Bonify.