SCHUFA

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Table of contents:
  1. What is the SCHUFA – and what does it stand for?
  2. What information does SCHUFA store about individuals?
  3. Where does SCHUFA get its data?
  4. How does a SCHUFA credit report work?
  5. How long are SCHUFA entries stored?

What is the SCHUFA – and what does it stand for?

SCHUFA is one of the most well-known credit agencies in Germany. The name stands for Schutzgemeinschaft für allgemeine Kreditsicherung (General Credit Protection Agency). SCHUFA collects information about consumer payment behavior and shares it with businesses. Its goal is to assist in assessing a person’s creditworthiness.

SCHUFA is not a government agency, but a privately run company. It collaborates with numerous contract partners – such as banks, mobile phone providers, utility companies, and debt collection agencies. These partners report certain data, such as the signing of a contract or an unpaid debt.

The credit agency stores this information and makes it available to other companies. For instance, a bank can check how reliably someone has paid in the past before issuing a loan.

A credit check may also be requested when signing a mobile phone contract or searching for an apartment.

SCHUFA also plays a role in the context of debt collection. If a debt remains unpaid for an extended period and certain legal conditions are met, a so-called negative SCHUFA entry can result. This entry is stored for a set period and may impact future contracts.

What information does SCHUFA store about individuals?

SCHUFA stores various types of data that reflect a person’s payment behavior. This includes not only debts or reminders but also everyday information such as the opening of a checking account.

What types of data are stored?

Common types of information include:

  • Opening and closing of checking accounts or credit cards

  • Signing of loan or leasing agreements

  • Mobile phone or utility contracts

  • Number and amount of current loans

  • Terms, monthly installments, remaining balances

  • Insurance (partially), especially credit and surety insurance; not every insurance company reports data

  • Positive payment history (e.g. regularly paid installments)

These data points indicate that a person is financially active – and when payments are made reliably, this can even improve the individual’s credit rating.

When is an entry made due to non-payment via a debt collection agency?

A negative SCHUFA entry does not occur immediately when a bill remains unpaid. Only once specific conditions are met can such an entry be made – for example, by a debt collection agency.

These conditions include:

  • The debt is not disputed.

  • At least two written reminders have been sent.

  • The individual was informed about the possibility of a SCHUFA entry.

  • A reasonable period passed between the reminder and the entry.

If payment is still not made, the information can be reported to SCHUFA. This particularly affects claims handled by debt collection agencies – such as unpaid online purchases or service contracts.

Where does SCHUFA get its data?

SCHUFA does not collect data independently but relies on submissions from partner companies. These contractual partners have a business relationship with the person concerned and report certain activities relevant to creditworthiness.

Who reports data to SCHUFA?

SCHUFA’s contractual partners include:

  • Banks and savings banks

  • Credit card providers

  • Leasing companies

  • Telecommunications providers

  • Utility companies

  • Mail-order retailers

  • Insurance companies (partially)

  • Debt collection agencies

These companies may report events such as the signing of a loan agreement, the opening of an account, or the failure to pay a debt.

When is a debt collection agency the source?

Debt collection agencies often act as partners of SCHUFA. If an outstanding claim remains unpaid after several reminders, the debt collection agency can initiate an entry with SCHUFA – but only if all legal requirements are met.

This means: The person must have been informed in advance about the possible entry. Additionally, the claim must not be disputed. Only under these conditions may the information be reported and stored.

Important: Not every claim that is handled by a debt collection agency automatically leads to a SCHUFA entry.

How does a SCHUFA credit report work?

The SCHUFA credit report is a document that provides information about stored data and a person’s creditworthiness. It can be requested by both companies and private individuals.

What do companies see?

Companies that are SCHUFA partners receive a credit report. This includes:

  • A numerical score value that estimates the risk of payment default

  • If applicable, detailed information on current or settled contracts

  • Notes on payment defaults or negative indicators

Based on this information, companies decide whether to enter into a contract or request additional security. In the field of debt collection, a SCHUFA credit report can help assess the risk of non-payment – or whether to initiate a judicial dunning process.

How is the SCHUFA score calculated?

The SCHUFA score is a numerical value that assesses the risk of payment default. It is calculated based on all stored data and is updated regularly.

Factors influencing the score include:

  • Number and type of loans

  • Duration of credit agreements

  • Payment history (e.g., regular payments, payment delays)

  • Existing loans and credit limits

  • Negative entries such as outstanding or titled claims

The higher the score, the lower the estimated risk of payment default. The score serves as a decision-making tool for companies, for example, when granting loans or entering into contracts.

What does an individual see?

Anyone can request a copy of their own data from SCHUFA. This so-called data copy under Article 15 GDPR is available free of charge once per year.

It contains:

  • A complete overview of all stored information

  • A list of companies that requested information in the past 12 months

  • The calculation basis for the individual’s SCHUFA score

This personal credit report is especially useful for checking entries and requesting corrections if needed.

How long are SCHUFA entries stored?

SCHUFA may only store personal data for as long as necessary for credit assessment purposes. After that, the data must be automatically deleted. The exact retention periods vary depending on the type of information.

Overview of retention periods

  • Inquiries by companies: 12 months, but only visible to third parties for 10 days

  • Loan contracts, checking accounts, credit cards: 3 years after contract termination

  • Information about overdue, dunned claims (debt collection): 3 years after payment of the debt or after creation of an enforceable title

  • Titled claims (e.g. enforcement notice): 3 years from entry or resolution

  • Insolvency proceedings: 3 years after conclusion or cancellation

Can data be deleted earlier?

In some cases, earlier deletion is possible – for example, if an entry is incorrect or a debt is settled quickly after proceedings begin. This usually requires an active deletion request to SCHUFA.

Creditors or debt collection service providers can also initiate early deletion if they report the settlement of the claim.