SCHUFA Score [2024 Guide] - Navigate Germany

Whenever you move to Germany, you will hear the term “SCHUFA score” and will get to know that it has great importance in the lives of Germans. Read this article to know all about SCHUFA score. 

SCHUFA Defined

SCHUFA (Schutzgemeinschaft für allgemeine Kreditsicherung) means General Credit Protection Agency who is responsible to track all your payments and monitor your financial behavior and check your trustworthiness.

The SCHUFA Holding AG starts your SCHUFA record whenever you make a payment contract. It collects your financial records from mobile phone companies, bank accounts, credit card companies, internet providers, etc and generates a report to explain how credible you are. Ensure that your score is always high and do not put yourself at credit risk by paying your bills in time.

Get Your SCHUFA Report

Get your SCHUFA report through different ways because all parties (landlords, banks) rely on different methods according to the purpose for which it is required.

Free SCHUFA Report

If you are a German resident, you have the legal right to get a free SCHUFA report every year to look at your financial record annually. Follow the below procedure to get free SCHUFA report;

• Visit their official SCHUFA website
• Click on “Jetzt beantragen”
• Enter your details
• Submit a request
• Receive Datenkopie (data copy)

If you upload a copy of your passport and Meldebescheinigung (registration papers), you will have to answer fewer questions which will speed up the verification process. After completing your application, you will get your free SCHUFA report via email in a few days. Your report is just for your personal use, so do not give it to any third party even if you need to rent an apartment. If you need to submit your SCHUFA record to the third party, you must get a paid SCHUFA report.

Paid (Online) SCHUFA Report

Free SCHUFA reports take some time but no worries, you can get your SCHUFA report online if you need it urgently. The cost of an online SCHUFA report is 29,95 Euros. Follow the below procedure to get a paid SCHUFA report;

• Visit the SCHUFA website
• Click on ‘Jetzt Bestellen’
• Fill in your personal details
• Specify the payment method and pay
• Download your SCHUFA record instantly.

You can submit a paid SCHUFA report to prove your financial credibility as it is acceptable by all parties.

SCHUFA Report from The Bank

Your nearest bank can also give you your SCHUFA record no matter if you have a bank account or not. The cost of SCHUFA report from the bank is 29,95 Euros which is payable by your German bank account. Here is the procedure to get it from bank;

• Visit the nearest bank during working hours
• Show your passport and Meldebescheinigung
• Receive your SCHUFA report

Importance of Good SCHUFA Score

A good SCHUFA score is very important to make any financial contract in Germany. Your SCHUFA document should be with you whenever you are going for financial proceedings. If your SCHUFA score is good, it will take less time to deal with any financial matter but a bad SCHUFA score will make everyone in doubt to deal with you and your credibility will be questioned. Your SCHUFA score serves as a guarantee that you will fulfill your financial responsibilities.

What SCHUFA Score is Good?

When your financial record starts, your SCHUFA score (Basis score) is 100 until you pay your bills on time. If you are irresponsible and make delays in making payments, your score will start decreasing. A good SCHUFA score should always be more or equal to 97% but a 95% SCHUFA score is also good, so keep your SCHUFA score as high as possible. See the risk level associated with your SCHUFA score in the figure below.

Maintain a High SCHUFA Score

To maintain a high SCHUFA score, follow these tips;

• Pay your bills on time
• Do not have unnecessary credit cards
• Keep your bank balance healthy.
• Avoid having inactive bank accounts.
• Don’t switch your bank accounts excessively.
• Check your SCHUFA record annually through the free report. If you find any errors, place your objection immediately to get corrections.
• Take a bigger loan rather than taking small loans from time to time.

Final Thoughts

SCHUFA score tells your financial credibility and depends on your behavior towards financial responsibilities. Your SCHUFA score determines whether you can buy a house on rent or not. Banks will decide to give you a loan after considering your SCHUFA score, so maintain it as high as possible to make yourself eligible for all financial proceedings.