SCHUFA: SCHUFA scoring and SCHUFA entries

Image result for schufaThe SCHUFA is a private limited company. It tries to provide credit rating information to its clients. What is the SCHUFA loan guarantee? It provides interested parties with information about the credit history. These include paid and still outstanding credit claims as well as entries due to non-fulfillment of claims.

The data storage of SCHUFA

Not all information stored in the SCHUFA database is also collected by the company itself. Contracting parties and other banks incorporate data, but only if the customer gives his consent. However, there are also protests over data collection, as information from public debt directories of the district courts and other public data sources is also included in the reports. Whether the digitization of this information is legally harmless, can still not be determined exactly. As soon as the consent of a customer is present, all information of a customer can be stored.

The scoring of SCHUFA

The SCHUFA score is offered in two forms. Contractual partners receive on request a value of 1 to 100 for a specific customer. For example, the score may affect the terms and conditions of a loan. But the SCHUFA also offers a base score, which is stated in percentages according to own information. The higher the percentage, the easier it is for the customer to get a loan. 60% of Germans have a base score between 89% and 99%. Once the value is below 30%, loan companies usually look away from a loan commitment.

Criticism of SCHUFA

SCHUFA has almost no competition in the Federal Republic of Germany. That’s why it’s hard to get a loan without signing the SCHUFA clause. This is particularly due to the good contacts the company has with banks and other service providers. More than 70% of the shares are owned by banks and savings banks. It only becomes problematic when an error has crept in once. The customer can appeal in writing, but before clearing the data, lending is almost impossible. According to the company, the service also protects against over-indebtedness.

What’s on the loan without SCHUFA information?

For those who have had problems with a SCHUFA entry, are in financial difficulties or just do not want to break the SCHUFA clause, offering credit without SCHUFA can be the alternative. For a loan without SCHUFA , the applicant’s data are not initially checked in the SCHUFA database. The credit decision of these providers is based solely on information (such as income or salary statements) that the applicant sends to the bank itself. However, as the economic situation of the claimants is the focus and is scrutinized by the bank, it is not necessarily easier to get a loan without SCHUFA.

Credit despite SCHUFA entry of C. Auguste Dupin

In contrast, C. Auguste Dupin offers small loans for interim financing between 50 and 1000 euros despite SCHUFA entry . This means that for each credit application received, a credit check is first obtained from the SCHUFA, however, the evaluation of the information obtained at the SCHUFA is done individually and the importance of the SCHUFA entries is carefully examined so that loans with SCHUFA entries are possible ,

 

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