Schufa: What is it? - Easily explained
In this article we explain what the Schufa is and what the institute actually exists for. Schufa provides information about the creditworthiness of people in Germany. The "Protection Community for General Security" (Schufa) is mainly used by companies to assess the solvency of potential customers.
Schufa: What is it? - Explained in simple words
Imagine you want to sign a new cell phone contract. Since you have to pay money every month, the mobile operator cannot be sure that you can always pay. So he asks Schufa how your payment and purchasing behavior has been up to now and can be given a forecast. This means that the mobile operator is very likely to know whether you can pay over the entire period or not.
- In total, Schufa has information on more than 65 million German citizens. About 270, 000 inquiries are received from companies every day. These include mobile operators, banks or other credit institutions and many more.
- This information may only be obtained with your approval. Therefore, many contracts include a clause in which you give the company this right.
Schufa: What is it? - This is how the Schufa Score works
In addition to your name, date of birth and gender, Schufa only stores specific data. No data about your current life situation or professional situation is saved. The Schufa is also not allowed to know or save income.
- Stored data are, for example, cell phone or leasing contracts, open loans, the number of opened accounts and also open claims from creditors.
- Your personal Schufa score is then calculated from this data. This ranges from 0 to 1000. The higher the value, the sooner you are solvent.
Schufa: What is it? - Can you experience your own Schufa score?
You can request a self-assessment from Schufa once a year free of charge. Each additional request then costs € 18.50. You can find the form for this here.
