What is Credit Score?
Quick Summary
The credit score (SCHUFA Score) is a numerical value that indicates the creditworthiness of a person in Germany. It is calculated by credit bureaus and influences the conditions for loans, contracts, and financial products. Higher scores mean better conditions.
Definition in Detail
The credit score is a statistical measure that predicts the probability of a person meeting their financial obligations. In Germany, the SCHUFA (Schutzgemeinschaft fuer allgemeine Kreditsicherung) is the leading credit bureau and calculates the so-called SCHUFA Score.
The score is calculated based on various factors:
- Payment history (most important factor)
- Number and type of credit accounts
- Length of credit history
- Frequency of credit inquiries
- Types of credit used (credit cards, loans, leases)
Credit Score Ranges
The SCHUFA Base Score ranges from 0% to 100%. The higher the value, the lower the statistical default risk:
| Score Range | Rating | Meaning |
|---|---|---|
| 97.5% – 100% | Excellent | Very low default risk, best conditions |
| 95% – 97.5% | Very Good | Low risk, good conditions |
| 90% – 95% | Good | Low to manageable risk |
| 80% – 90% | Acceptable | Increased risk, potentially higher interest rates |
| 50% – 80% | Critical | High risk, rejections possible |
| Below 50% | Very Critical | Very high default probability |
Factors Affecting the Score
Positive Factors
- • Timely bill payments
- • Long-standing bank relationships
- • Successfully repaid loans
- • Stable residential address
- • Few credit accounts
- • No payment reminders
Negative Factors
- • Payment defaults
- • Collection proceedings
- • Account terminations by banks
- • Many credit inquiries
- • Excessive credit card limits
- • Insolvency proceedings
Tips for Improving Your Score
- 1Check your data: Request a free data copy annually and check for incorrect entries.
- 2Pay on time: Avoid payment defaults through standing orders and timely payments.
- 3Consolidate accounts: Cancel unused credit cards and checking accounts.
- 4Avoid unnecessary inquiries: Only apply for credit you actually need.
- 5Build a history: Long-standing customer relationships are viewed positively.
Frequently Asked Questions
What is a good credit score in Germany?
A good credit score is above 95%. An excellent score ranges from 97.5% to 100% and offers the best conditions for loans and contracts. Scores below 90% can lead to rejections or higher interest rates.
How can I check my credit score for free?
According to Article 15 GDPR, you are entitled to one free data copy per year from SCHUFA. You can request this at meineschufa.de. Alternatively, paid services like SCHUFA BonitaetsCheck provide immediate information.
What factors affect my credit score?
Positive factors include: Timely payments, long-standing customer relationships, reasonable credit utilization. Negative factors include: Payment defaults, collection proceedings, too many credit inquiries in a short time, account terminations by banks.
How long does a negative entry remain in my credit report?
Most negative entries are deleted after 3 years (calculated from the end of the year in which the entry was made). Discharged debts from insolvency remain for 3 years, regular loan inquiries for 12 months.
Can I improve my credit score quickly?
Rapid improvement is limited. However, you can: Check for incorrect entries and have them corrected, keep the number of accounts reasonable, always pay bills on time. Each positive behavior gradually improves the score.
Legal Notice
Credit scores are calculated according to the German Federal Data Protection Act (BDSG) and GDPR. According to Art. 15 GDPR, every person is entitled to free information about their stored data once a year. Status: February 2026.