This is the method by which Schufa determines the new credit score.

Transparency rather than a “black box” – that is the assurance offered by the new Schufa score. What is the process for the updated credit check? What elements are assessed? Just how transparent is it, in reality?

In the coming years, Schufa is set to offer consumers complete transparency regarding the calculations behind their creditworthiness assessments. The credit agency has streamlined its so-called score, which offers insights into creditworthiness, and assures that even those without expertise can effortlessly compute it.

The latest score remains under evaluation. It is anticipated that consumers will gain access to this in the fourth quarter of 2025, through a complimentary digital overview of their personal data, available either in the Schufa app or online.

What exactly constitutes a credit score in Germany?

These scores are designed to forecast the payment habits of consumers. A higher score indicates greater creditworthiness. Individuals who habitually delay bill payments and require reminders tend to receive a lower rating.

What distinguishes the new Schufa score?

Out of a staggering 250 potential criteria, Schufa has meticulously chosen 12 that it deems the most comprehensible while also delivering the most dependable insights into an individual’s solvency. The updated score is determined by various elements, including the duration of your credit card or checking account usage.

It also takes into account whether there are any adverse entries resulting from unpaid bills, despite numerous reminders being issued. Points are allocated based on twelve criteria, with values spanning from 100 to 999. A greater total score indicates a more favourable assessment of the consumer’s creditworthiness.

What implications does the new score hold for the consumer?

It is essential for consumers to grasp the methodology behind the calculation of their score, as well as the factors that can impact it in both a favourable and unfavourable manner. Schufa aims to empower individuals to simulate their personal score at any moment by utilising their data through a personal data cockpit: What effect might it have if I were to secure an additional installment loan? What impact might cancelling one or more credit cards have on my credit rating?

What impact does a Schufa score carry?

The assessments conducted by the credit agency located in Wiesbaden serve as a crucial reference point for banks, online retailers, mobile phone providers, car dealerships, and energy suppliers. There is a keen interest in understanding customers’ payment habits prior to the finalisation of contracts and the delivery of goods.

Both corporations and individuals, including property owners, have the ability to access information. They are not provided with a detailed list of the customer’s obligations; instead, they receive their score. This affects the circumstances under which agreements are made with consumers.

What score is required for a German to secure a loan?

One cannot provide a definitive answer to this matter. Schufa contends that the score represents merely one aspect of the overall assessment. It does not engage in decision-making regarding matters such as the approval of loans or the finalisation of mobile phone contracts. The credit agency provides its contractual partners – encompassing banks, savings banks, mail-order companies, and energy suppliers – with essential information.

From where does Schufa obtain personal data?

The “Schutzgemeinschaft für allgemeine Kreditsicherung”, established in 1927, gathers information from its contractual partners regarding the initiation of current accounts, the issuance of credit cards, the finalisation of leasing agreements, and the provision of loans. Schufa gathers adverse data from official records, including debtor registries.

The credit agency retains personal details including name, date of birth, and address; however, it lacks information regarding an individual’s income, for instance. Recent figures indicate that Schufa holds information on 68 million individuals in Germany. Over 90 percent of this information is “stored solely in a positive light”. The final call on whether to proceed with a transaction lies squarely with the company that a consumer intends to engage in a contract with. For instance, when a customer seeks a loan, a bank will assess their creditworthiness through Schufa.

The bank enhances this information with its own insights, including details regarding the customer’s income, expenditures, and assets. In the end, the decision to extend credit hinges significantly on the bank’s appetite for risk.

What prompts Schufa to develop a new scoring system?

The credit agency states, “As individuals’ purchasing habits evolve, it is essential to regularly update the scoring formula.” For instance, there has been a notable rise in the number of mini-loans. Moreover, it appears that consumers are switching their primary banks with greater frequency than a decade ago, largely due to their habitual use of comparison portals to evaluate terms.

Is there external pressure as well?

Consumer advocates have persistently called for greater transparency from Schufa. The credit agency has consistently been under scrutiny for its model, often described as a “black box,” due to its lack of transparency regarding the calculation of scores.

The European Court of Justice (ECJ) has bolstered consumer rights in a ruling from February 2025 regarding the generation of credit report values, such as those from Schufa. Individuals now have the right to understand the basis on which decisions affecting them are made.

The procedure should be articulated clearly enough “that the data subject can comprehend which of their personal data were utilised and how in the context of automated decision-making,” the ECJ elucidated.

12 new Schufa criteria

-Age of oldest credit card
-Age of current address
-Number of inquiries and closings for current accounts and credit cards in the past 12 months
-Loan with the longest remaining term
-Number of inquiries in the telecommunications & (online) retail sector in the past 12 months
-Age of the oldest bank contract
-Real estate loan or guarantee
-Installment loans taken out in the past 12 months
-Credit status
-Existence of identity verification
-Latest credit line
-Payment defaults