In addition to failure to meet payment obligations, some mistakes can harm your Schufa score. What should you consider?
1. Too many credit cards and current accounts
Having too many current accounts and credit cards can damage your Schufa score. This is because most current accounts offer a certain overdraft limit.
If you have many current accounts, you may also use the overdraft more frequently. The chances of repaying all the money increase with each added account.
A similar situation applies to credit cards. While one or two credit cards that you always pay off can positively impact your score, having more than two cards leads to negative Schufa entries.
2. Numerous small loans
Taking out a large number of small loans can also have a negative impact on your Schufa score. This is because each loan always entails an additional financial burden.
If you apply for a new loan while the old one has not been paid off, it will not benefit your Schufa score.
So, instead of applying for many small loans of 2500 euros each, it's worth considering a different strategy. It's better to apply for a large loan of 10,000 euros right away.
3. Not reporting payment delays
If you can't make payments on a loan, you definitely shouldn't wait for someone to contact you.
It's best to be upfront and inform the credit organization about your payment delay in advance. If necessary, the deadline can be extended.
In principle, it is, of course, important to regularly check your Schufa score. This way, you can ensure that you have made all payments and, at the same time, protect yourself from unauthorized use of data or identity theft.
Also, by avoiding these common mistakes, they will not harm your Schufa score.
Related topics:
Living in Germany, understanding the impact on your Schufa score is crucial.
Failing to recognize that having multiple current accounts or credit cards can lead to more frequent use of overdrafts and unnecessary financial burden, respectively, might negatively impact your Schufa score.
Or,
While adjusting to life in Germany, beware of the potential impact on your Schufa score from maintaining an excessive number of current accounts or credit cards.
