Schufa

Schufa

If you want to rent an apartment, your landlord will probably ask for a Schufa report. Banks carry out a Schufa check before giving you a loan. Even if you buy a cell phone or lease a car, you will usually be presented with a contract with a Schufa clause.

All of this has to do with Schufa Holding AG. Schufa Holding AG (Schutzgemeinschaft für allgemeine Kreditsicherung) is a credit reference agency that collects information from consumers and companies that is relevant to the granting of credit. Based on your payment behavior in the past, predictions are made about your payment behavior in the future and translated into numerical values ("Schufa scores"). This is called a credit report.

Schufa Holding AG charges money for the credit report. According to German law, however, you have the right to receive a free Schufa credit report once a year. This should enable you to find out what information is stored, where it comes from and to whom it was forwarded.

Important: In newspaper advertisements or on the Internet, loan sharks offer you money without a Schufa check. Don't fall for them! They are certainly dubious.

What do I need to know?

Why do landlords ask for a Schufa report?

Landlords often ask for a Schufa report to make sure that you as a tenant will pay the rent regularly and on time. The landlord or property management company may want to see your credit report when you view the apartment. However, most will ask for this information at the latest when you apply for an apartment.

How do I get a free Schufa credit report?

You can obtain a free Schufa report once a year. The main purpose of this is to enable you to check the accuracy of all the data collected about you. Here you can find out step by step how to order the free Schufa report:

1. Call up the page meineSCHUFA.de. Scroll down to the bottom of the page. In a gray area it says: "Data copy (according to Art. 15 GDPR)". Click on the yellow link "To the form".
2. You will then be taken back to an overview page with all fee-based and free offers. In the left-hand column, click on the entry "Data copy (in accordance with Art. 15 GDPR)".
3. Don't be confused - the next page also tries to sell you the online credit report or the Schufa credit report. Only the "Data copy according to Art. 15 GDPR" in the right-hand column is free of charge. Click on it.
4. You will now be taken to a page that compares the Schufa compact service, which is subject to a fee, and the "Data copy in accordance with Art. 15 GDPR". If you click on "Order now" below the right-hand column, you will be taken to the order form for the free Schufa report.
5. Fill out this form and upload a copy of your identity card or a copy of your passport and your registration certificate.
6. You will usually receive your Schufa report by post within one to two weeks. If you need your report more quickly, you will probably have to apply for a fee-based report.

You can also see how you can get a free Schufa report in the video"How do I get a free Schufa report?".

Do I have to hand in the Schufa report?

No. No landlord has a legal right to a Schufa report. However, if you do not provide any information, this may reduce your chances of finding an apartment. If you have ordered the fee-based Schufa report, you can simply give the landlord a copy of it. If you have ordered the free Schufa report, you should also make a copy and black out all information that the landlord does not need to know. The free Schufa report contains all the data that Schufa has collected about you. The landlord only needs to know that there is only positive information about you.

What is a Schufa query?

If you apply for a loan from a bank, for example, the bank may carry out a Schufa query. As part of this query, the bank receives relevant information that indicates your payment reliability. Depending on how reliable you are according to Schufa, the bank will then grant you a loan. Not only banks, but also property management companies, telephone providers and car sellers are often authorized to make a Schufa query directly with Schufa Holding AG. However, your consent is required for this. Your contractual partner will ask you to sign a form for this purpose.

What is a Schufa clause?

There is often a "Schufa clause" in contracts. If you sign a contract with this clause, your data will be passed on to Schufa Holding AG. By doing so, you also give permission for a Schufa query.

What data does Schufa Holding AG store?

Schufa Holding AG stores all personal details (surname, first name, date of birth, address and previous places of residence). It also stores data on bank accounts, mobile phone contracts, installment payment transactions, dunning and collection procedures and on contracts and loans. It stores the term of loans, payment defaults or terminations.

Schufa does not store any data on marital status, employer, income, assets and deposit values. However, the last three points in particular can be positive for the consumer.

According to the Federal Data Protection Act, most data must be deleted three years after completion.

How does Schufa Holding AG obtain the data?

Various commercial enterprises, such as banks and telephone providers, send data to Schufa Holding AG. Schufa Holding AG is a private company that is financed by these various commercial enterprises. They all belong to the lending sector. Schufa itself therefore only collects the data without carrying out any research itself.

What do I do if Schufa makes a mistake?

Schufa uses the data to calculate a score value that indicates how likely it is that you will be able to pay your bills. This can lead to errors. You can therefore apply for a Schufa credit report once a year free of charge in order to detect errors in good time. If you find incorrect information, you can request a correction in writing.

You can obtain advice on this topic from the consumer advice center.

Important

The law stipulates that you can request a free Schufa credit report once a year ("data copy according to Art. 15 GDPR"). You can find out how to obtain free Schufa information in the section "How can I obtain free Schufa data information?"

The Schufa report is crucial if you want to rent an apartment, as landlords use it to ensure you'll pay rent regularly and on time. You can receive a free Schufa credit report once a year, according to German law, which allows you to check the accuracy of the stored data about you.

When a bank grants a loan, they perform a Schufa check to assess the borrower's payment reliability, relying on the information provided by Schufa Holding AG.

Source: handbookgermany.de