"We are Max and Tobi and are currently planning our wedding - a big celebration with around 100 guests. Location, catering and co. are not cheap in this case. All the service providers expect large down payments. How can we be sure that the service providers won't go bust while we're planning the event?"
Are you asking yourself the same question as Max and Tobias? Here are three very simple tips:
Conduct research
What impression does the website or the voice on the phone make on you? If they make a dubious impression, it's better to do more research.
Read reviews
Read reviews about the company. If there are too many negative comments or only positive reviews, you can conclude that the company is not trustworthy.
View payment options
Finally, you should look at the payment options. If you can find secure payment methods such as PayPal or purchase on account, this speaks in favor of the company. If you can only pay in advance, you should leave it alone.
To be even more certain whether you can trust a service provider, there is the SCHUFA company report. This provides more transparency about the creditworthiness of companies. So you can be sure that nothing will go wrong at your big events or on your most beautiful day.
"... After the wedding, we want to fulfill our dream of owning our own home. We're bringing some equity with us, but we'd like to finance the rest through a bank."
Are you also planning to build a house or do you need a loan for other reasons? Then you've probably already asked yourself what the conditions are for obtaining a loan. Every bank has its own checklist of points to determine whether someone can get a loan. If you have been with the bank for a long time, it will see your regular expenditure and income or how often you have overdrawn your account and use this to determine your willingness to pay. Of course, because the bank has to make sure that you can repay the sum plus interest. The SCHUFA score also plays an important role here . If your chosen bank is part of the SCHUFA contract partner network, it can obtain this score. This summarizes your creditworthiness, e.g. whether you reliably pay off small loans at electronics stores or how many loans are still outstanding. This information helps the bank to make a decision - which, in the best case scenario, will be positive and you will receive the loan.
Which bank is the right one?
Financial transactions always have something to do with trust. Who would you rather entrust with large sums of money? A stranger or someone you've known for years? It's the same with banks. In the best case scenario, you'll feel comfortable with your bank and get your loan there. Otherwise, you need to establish this trust with new banks. The SCHUFA credit report can help with this, as can a personal interview or submitting documents that describe your financial situation. But beware: some banks offer loans without conditions or a SCHUFA check - this involves major risks: high interest rates, short repayment periods and hardly any collateral in the event of payment defaults or breaks. We strongly advise against taking out these loans - even if they sound very tempting at first. Loans should give you security, not take it away. These loans, which are often advertised as "SCHUFA-free", are a real debt trap.
Why does the score actually exist?
On the one hand, the score helps companies to assess whether you can pay the loan and what your payment behavior is like. On the other hand, it also protects you from overextending yourself. You can spend an incredible amount of money with just a few clicks. The SCHUFA score helps you to recognize in good time when you are reaching your financial limits. Sure, it can be perceived as unfair if you want something but don't get it - but from a distance, it helps you and the company to remain financially secure and not go bankrupt.
Don't worry: If you forget to pay or the first reminder is already in your letterbox, this will not affect your score. Only if there are "real" payment defaults despite reminders can this lead to a negative SCHUFA entry.