Here you will find answers to the following questions:
Do you want a new car or need a loan to buy new furniture? Going to the bank or making an inquiry via the Internet for financing is now quick and easy. But what happens if you are denied a loan due to an incorrect SCHUFA entry?
How do such false entries come about? How can you take action to have these corrected by SCHUFA? Read this and much more in the following report.
What is SCHUFA?
The SCHUFA (protection association for general credit protection) acts as an intermediary between the customer and a company . It collects data from German consumers. This includes, for example, the number of active checking accounts, existing credit and leasing contracts, cell phone and other telecommunication contracts previously used and outstanding receivables.
SCHUFA is a leader in collecting data and, according to its own information, currently has a good 813 million data on 5.3 million companies and 67.2 million citizens. Further information is also the current address, previous domicile, surname and first name as well as date of birth and gender. From all of this data, SCHUFA compiles your personal score, which decides whether you will receive a loan or not.
What is information from SCHUFA required for?
Lending companies, such as car dealerships and banks, find protection against payment defaults of any kind through SCHUFA. Private individuals such as landlords also make use of obtaining information in order to ascertain the creditworthiness of a potential contractual partner.
There are two types of information:
The A-information , which contains all information from banks, such as the exact bank details or credit inquiries made. A distinction must be made between this and the B information . Data within this category often belong to mail order companies or telecommunications companies, with the on-time payment of loan installments being observed in particular.
How is a personal score created?
The personal score is extremely important. This is best if you pay your installments and bills on time. A score of 5 percent is the minimum creditworthiness, 100 percent is the ideal value. However, this never occurs in reality. There are a few ways to improve your SCHUFA score.
SCHUFA is not obliged to report how exactly the score is calculated, but is obliged to provide information on which data has been saved on a person. SCHUFA is not allowed to record information about income or a job!
How does a wrong SCHUFA entry come about?
Unfortunately, there are always wrong entries in SCHUFA. On the one hand, this is very uncomfortable for the borrower if he receives a loan refusal. On the other hand, it is also annoying and it means additional expenditure of time to have the wrong entries deleted.
A new mobile phone contract, the purchase of a new car or even the signing of a rental contract can be made difficult or impossible due to incorrect data in the SCHUFA.
The following reasons can be the cause of incorrect entries:
- Personal data is incorrect or not entered at all
- Claims from companies are incorrectly stated in the amount (incorrect amount)
- Settled claims are not displayed (incorrect labeling)
- Repaid loans are incorrectly not deleted or not deleted in time
- Late payments are wrongly shown in the information
So that you can recognize such errors in good time, it is advisable to request information about your data once a year. You even have the right to view this information annually free of charge. Especially before inquiring about a loan or major purchases, it is advisable to get an overview of the current SCHUFA entries.
What can you do about a false SCHUFA entry?
In order to have incorrect entries corrected, you must be able to prove that certain data has been stored incorrectly or wrongly. First, get in touch with the company that is responsible for your data transfer. This is obliged to notify the credit agency of subsequent changes, such as a contract termination or the settlement of claims, within one month. It is recommended to contact SCHUFA at the same time to clarify any misunderstandings. This MUST correct such data!
Proceed as follows:
- Call SCHUFA personally to discuss your concerns
- You can also request a written deletion or change of your incorrectly stored data
- Include copies of the relevant contracts or your real home address
SCHUFA takes out of many obligations, including checking all data for accuracy. This means that the responsibility lies with the data provider, such as a bank or a car dealership. As a mediator, put pressure on both parties to accelerate the change process!
Conclusion : SCHUFA compiles a lot of information. For the most part, this is economic information that is reluctant to share. So stay alert and use the opportunity to view your SCHUFA files once a year free of charge.