Our work makes it convenient and quick for people to perform transactions and for companies to trust them without knowing them personally. For providers of consumer credits, goods and services, it reduces the risk of default, which helps them do more business and offer customers better terms.
This is how we support growth and prosperity in Germany. Our solutions accompany business transactions all the way from identification and credit rating, to fraud prevention, to regulatory compliance. We do a lot to prevent money laundering, which helps to limit its economic damage.
We are there to ensure that credit requests can be processed safely, quickly and smoothly. This might be for:
The idea of setting up SCHUFA in 1927 originated with an employee at “Berliner Elektrizitätswerke” (Berlin electricity company). Because its electricity meter readers knew who paid their electricity bills regularly and on time and who didn’t, he came up with the idea of offering “good payers” electrical appliances such as refrigerators on instalments. Those people, after all, were known to fulfil their payment obligations.
This meant that significantly more people were able to enjoy modern electrical appliances. Other companies became interested in the principle of enabling credit transactions on the basis of existing payment records. This is how the Schutzgemeinschaft für allgemeine Kreditsicherung – the General Credit Protection Association, or SCHUFA for short – was eventually founded, where companies could report and query information on their customers’ payment behaviour.
Businesses need to be able to assess risk reliably if they are to offer credit. SCHUFA can provide this information, based on the principle of mutual benefit. SCHUFA provides a platform with which to record and store payment records provided by participating companies – referred to as contractual partners – and to exchange these records within the network. SCHUFA uses its database for credit ratings and identity checks. This information is an important decision-making basis for companies and helps them to minimise payment defaults in retail and corporate business.
If SCHUFA holds information about you, it is usually easier to buy goods on account or on instalments.
They can sell more goods if they are able to offer them on instalments and similar.
As Germany’s leading solution provider of credit and information services for consumers and businesses, SCHUFA holds more than a billion details relating to six million companies and 68 million individuals. We supply an average of 490,000 reports every day to companies, which facilitates quick and uncomplicated business transactions.
For more than 90 percent of the persons, we have stored exclusively positive information. Our work has a stabilising effect on the credit business in Germany. The unchanged high rate of 97.9 percent of consumer credits repaid without a problem indicates the sustained effect of our work.