With its new credit score, SCHUFA—the first credit bureau in the world to do so—is committed to complete transparency and makes the score understandable and easy to follow for consumers.

The new SCHUFA Score assesses consumers’ creditworthiness. It applies across the banking, savings banks, cooperative banks, telecommunications, retail, and mail-order/e-commerce sectors. With the new score, consumers and businesses will see the same score for the first time. A transition period applies to businesses until the end of 2028.

To help users understand the new score, SCHUFA has developed an explanatory tool within the new SCHUFA Account that reveals the formula behind the new score. The score is based on twelve criteria. Each criterion that is factored into the new score is assigned points that can be easily calculated—without any specialized statistical knowledge.

Consumers also have the option, through their SCHUFA account, to view the data stored about them by SCHUFA at any time, free of charge and online.

What do the score categories mean?

To help you better understand your credit score, SCHUFA has categorized consumer scores into the following tiers: Excellent, Good, Acceptable, Fair, and Poor. This makes it easier for you to assess how your score reflects your creditworthiness. That’s why it’s also important to understand that SCHUFA does not make the final decision on whether to enter into a contract. Banks, retailers, and other companies make these decisions themselves—based on internal guidelines and additional data.

The assessment of the likelihood of a contract being signed, as outlined below, applies to the banking industry. Banks have particularly strict requirements when it comes to creditworthiness checks. Here are the five SCHUFA score categories in detail:

Excellent (776 to 999 points)

Based on the data stored with SCHUFA, individuals with a score in this category pose a low risk of default—compared to the general population. Their SCHUFA score reflects excellent creditworthiness, and they have the best chances of obtaining a loan from a bank. In addition to the SCHUFA score, banks also consider other factors when making credit decisions, such as a household’s disposable income.

About 62 percent of people currently have a score in this range.

Good (709 to 775 points)

Individuals with a score in this category have an average risk of default—based on the data stored about them at SCHUFA—compared to the general population. Their SCHUFA score reflects good creditworthiness, and they have a good chance of obtaining a loan from a bank. In addition to the SCHUFA score, banks also consider other factors when making credit decisions, such as a household’s disposable income.

About 20 percent of people currently have a score in this range.

Acceptable (642 to 708 points)

Individuals with a score in this category have a slightly higher risk of default—based on the data stored about them at SCHUFA—compared to the general population. Their SCHUFA score reflects an acceptable creditworthiness, and they therefore have a good chance of obtaining a loan from a bank. In addition to the SCHUFA score, banks also consider other factors when making credit decisions, such as a household’s disposable income.

About 8 percent of people currently have a score in this range.

Satisfactory (100 to 641 points)

Based on the data stored by SCHUFA, individuals with a score in this category have an elevated to significantly elevated risk of default—compared to the general population. Your SCHUFA score reflects a low creditworthiness, and as a result, it may be more difficult to obtain a loan from a bank. In addition to the SCHUFA score, banks consider other factors when making credit decisions, such as a household’s disposable income.

About 2 percent of people currently have a score in this range.

Insufficient (no score)

Individuals in this category have failed to meet their payment obligations (e.g., outstanding invoices or loan installments) despite multiple reminders. In accordance with legal requirements, banks and other companies may report such outstanding payment defaults to SCHUFA. Additionally, this category may also include information from the debtors’ or insolvency registry. In all these cases, SCHUFA does not calculate a score. A score is only determined again once the outstanding debts have been settled.

About 8 percent of people in Germany currently have outstanding payment issues.