"Hey guys! I'm Emma and I love to browse and store online for the latest clothes! And the best thing is that I can choose between different payment options / payment methods. I pay for my new favorite items and other small purchases via PayPal. Larger investments, such as my laptop, I pay by invoice - I use Klarna for that."
Do you feel the same way as Emma and like to store online on account? You're not alone: in fact, purchasing on account is the absolute favorite payment method among online shoppers. The advantages are obvious: it's convenient, secure and you have the option of paying for the goods after receipt or returning them directly if you don't like them.
But have you ever thought about how sellers can ensure that they receive the money for the goods?
Credit check in real time
If you decide to purchase on account, there is a certain risk of non-payment for the operator of the online store. In order to minimize this risk for sellers, you will be checked for your solvency, the so-called credit rating. This runs almost automatically in the background of the online ordering process if you decide to purchase on account.
Assess solvency
To do this, the seller needs your credit score, which they request from a credit agency such as SCHUFA. The score is a percentage value that enables the seller to estimate how likely it is that you can and will pay your invoice. The score value is based on your previous payment history. The more relevant information can be analyzed, the more accurate the score is and the more reliably your ability to pay can be assessed.
Buy Now Pay Later
Perhaps you also use the "Buy Now, Pay Later" payment method and then pay the outstanding invoice amount in installments? This is a combination of purchase on account and payment by installments, i.e. payment in installments over a certain period of time. Your credit score is usually checked here too. Even if this option seems very attractive at first glance because you don't have to pay the total amount of your order in one go, caution is advised! This payment method can quickly turn out to be a debt trap, especially for young people. One monthly installment may be manageable, but several of these small loans can quickly eat up your budget.
"...in addition to sneakers and bags, I will soon have to buy some furniture. I'm moving to Berlin to my first apartment of my own for my studies."
Are you also looking for an apartment? Then there are a few things you should pay close attention to. Finding an apartment, especially in big cities, is often not that easy.
This already applies when applying for a rental contract: Landlords also make an important decision when selecting their future tenants. Since there is an immense flood of people looking for accommodation, especially in large cities, there is usually a large selection of applications for rental offers. This means that it is all the more important for you to present yourself as trustworthy and reliable to the landlord. In this context , the SCHUFA credit report offers you the opportunity to provide credible and reputable proof of your financial reliability. The SCHUFA report serves as a safeguard for the landlord: it states whether your previous payment history has been reliable. From the very first moment , the SCHUFA credit report ensures trust between prospective tenants and landlords without violating your privacy.
The data copy is to be distinguished from the SCHUFA credit report. This is merely a compilation of the data stored about you. This means that it contains sensitive personal information that you should not pass on. Landlords do not need to know whether your car is financed, whether you have a loan or where you have a cell phone contract. The only thing that matters is whether you reliably meet your payments. The SCHUFA credit report, on the other hand, contains up-to-date official proof of your creditworthiness and is recognized by landlords . You can find out more about ordering a SCHUFA credit report online
Unfortunately, this is not the only challenge you face when looking for accommodation. Scammers also often take advantage of the housing shortage, especially among students in popular university cities such as Berlin, Munich, Hamburg or Münster. Fraudsters pose as fake landlords and advertise "dream apartments" - fishing for the personal data of those looking for accommodation. Why do they do this? Because they use your personal data to open bank accounts in a false name, for example, or to order high-priced goods online.
It can also happen that the fraudsters demand deposits or other sums of money before the alleged apartment has even been viewed. The fake landlords then often state that they are currently unable to work or are abroad and promise to send the keys and rental contract afterwards. Victims only become aware of the scam when their accounts are blocked, for example. But at the latest on the day they supposedly move in: Someone else lives in the actual apartment who has never advertised for it.
What can you do to prevent this from happening to you?
- If you find a potential home online, you should take a close look at the advertisement. If possible, go to the property in person to compare the outside of the house with the property description and get your own impression.
- You should also always be careful when passing on your data. Never send scanned ID documents or other documents with sensitive information.
- Never pay in advance. If you are pressured into paying money before a viewing, you are not dealing with a reputable provider.
In general, a healthy dose of skepticism and mistrust is never a bad thing. If, despite everything, you suspect that you have been the victim of identity fraud, contact the police immediately. SCHUFA also offers help in such cases to prevent further misuse of your personal data.