Schufa is a private company in Germany. It collects information about whether people pay their bills and loans. A company like this is called a credit agency (Auskunftei). From this information, Schufa calculates a score for your creditworthiness (Bonität). Creditworthiness means: how likely is it that you will pay your bills on time? Landlords, banks, mobile phone companies and energy providers often check with Schufa before they sign a contract with you. If you are new to Germany, you usually do not have any Schufa entries yet. Data from your home country usually does not reach Schufa. That is why it is a good idea to understand Schufa early and to build a good credit rating step by step. This applies to all adults who want to rent a flat or sign contracts in Germany.
What you need
- A registered address (Meldeadresse) in Germany. This is the address where you are registered with your city or municipality. You can read more about this under Registering your address.
- A valid passport or ID card.
- A valid residence permit (Aufenthaltstitel), if you need one. Banks often ask for it. Read more under Sorting out your residence permit.
- A current account (Girokonto) with a bank in Germany. A current account is a normal account for your salary, rent and bills.
- An email address, if you want to request your data from Schufa online.
- Some patience. A good credit rating does not happen immediately; it builds up over many months.
Step by step
- Register your address. Schufa links data to your name, your date of birth and your address. A permanent address helps make sure your data is matched correctly.
- Open a current account. Banks usually report a new current account to Schufa. For many people, this is their first entry. You can read how to do this under Opening a bank account.
- Pay all your bills on time. This applies to rent, electricity, your phone and internet. A standing order (Dauerauftrag) helps with this. This is a transfer that your bank makes automatically every month. With a direct debit (Lastschrift), the company takes the money from your account itself, with your permission.
- Keep enough money in your account. If a direct debit fails, you will often receive a payment reminder (Mahnung). A payment reminder is a letter that reminds you of an unpaid bill. After several reminders, unpaid bills can lead to a negative Schufa entry.
- Only sign contracts you really need. Do not take out loans or buy things in instalments if you are not sure you can pay for them.
- Request your free copy of your data. The data copy (Datenkopie) is a list of all the data Schufa has stored about you. You have a right to it. This is stated in the General Data Protection Regulation (Datenschutz-Grundverordnung), or GDPR (DSGVO) for short. This is a European Union law that protects your data. You can request the data copy online or by letter directly from Schufa. Schufa also offers products that cost money. You do not need these to check your own data.
- Check your data carefully. Are your name, date of birth and address correct? Do you recognise all the contracts and accounts? If something is wrong, write to Schufa and ask for a correction. You can also contact the company that reported the incorrect entry.
- Check your data regularly. For example, once a year or before a big decision, such as looking for a flat.
Costs and deadlines
- The data copy under the GDPR is free of charge.
- Schufa also sells other reports, for example for landlords. Before buying, check carefully whether you really need such a report. Ask the landlord which documents are enough for them.
- Under the GDPR, a company usually has to respond to your request within one month.
- How long an entry stays stored depends on the type of entry. You can get exact information directly from Schufa.
Common problems for newcomers
You do not have any Schufa entries yet
Many landlords want to see a Schufa report. Without any entries, you can show other documents instead. These include your employment contract, your payslips (Gehaltsabrechnungen) (monthly statements of your wages) or bank statements. A confirmation from your previous landlord can also help. Sometimes a guarantor (Bürge) helps. A guarantor is a person who promises to pay the rent if you cannot.
You do not have a registered address yet
Without an address, it is difficult to open an account. However, everyone who is legally resident in the EU has a right to a basic account (Basiskonto). This is a simple current account. A bank may not refuse it because you have no Schufa entries. For your phone, you can use a prepaid card at first. With this, you pay in advance and there is no contract. Read more under Choosing a mobile phone plan.
You do not speak much German yet
Letters from Schufa and from companies are usually in German. Ask someone you trust to help you. There are also advice centres for migrants. If you have questions about contracts, the consumer advice centre (Verbraucherzentrale) in your federal state can help. If you have debts, a debt counselling service (Schuldnerberatung) can help. The services available vary from city to city.
Your name is spelled in different ways
If your name was transliterated from another script, it may be spelled in different ways. Your data may then be matched incorrectly. For all contracts, use exactly the spelling in your passport.
You are moving house
After a move, bills and payment reminders may go to your old address. Tell all companies your new address, for example for your electricity and your internet. That way, you will not miss any bills.
Frequently asked questions
Does Schufa store my salary or my nationality?
No. According to Schufa, it does not store income, assets or nationality. It mainly stores data about accounts, contracts, loans and unpaid bills.
Is it bad if I have no Schufa entries?
Having no entries is not a negative entry. However, companies have little information about you. That is why some companies are cautious at first.
Can I bring my credit rating from my home country?
No, Schufa does not take over this data. However, you can show a landlord documents from your home country. Whether they accept them is up to them.
Do I have to pay for my Schufa report?
No. The data copy under the GDPR is free of charge. Only certain other Schufa products cost money.
What do I do if an entry is wrong?
Write to Schufa and ask for a correction. You have a right to have incorrect data corrected. Include proof, for example a receipt for a bill you have paid.