General information about mobile phones without Schufa

Nowadays everyone uses a mobile phone or smartphone. These devices have become indispensable in everyday life: they are used not only for calls and messages but also as navigation devices, cameras or MP3 players. Many people therefore turn to offers for mobile phones without Schufa.

Before concluding a mobile contract, however, the applicant’s Schufa is checked regardless of the tariff. Those with negative or too many entries may have difficulty getting a mobile contract approved. There are, however, options to obtain contracts despite a negative Schufa or to get a mobile phone without a Schufa entry.

Mobile contracts & Schufa

Schufa provides banks and contractual partners such as mobile contract providers with information about which monthly liabilities potential customers have already entered into. This includes loans but also other contracts that involve monthly payments. This allows an estimate of how much of the monthly income is already tied up and of the applicant’s creditworthiness. For this reason, a request to Schufa is also referred to as a credit check. Consumers often only think of negative entries in connection with creditworthiness and the Schufa report. But too many contracts can also reduce the chances of obtaining new contracts and loans. It is true that warnings and other negative entries reduce the terms and chances of attractive mobile tariffs.

For future contracts it can therefore be sensible to take out a mobile contract without Schufa. For customers with negative entries there are also explicit mobile contracts despite Schufa. Since the risk for mobile providers is higher with negative entries, slightly worse tariff conditions are to be expected.

Alternatives to a mobile contract

Nobody today can really do without a mobile phone or smartphone. If someone cannot get a contract for the reasons mentioned above, they can opt for a mobile contract without Schufa. In contrast to a contract phone, in this variant the phone must first be loaded with credit. Only then can the phone be used. Even with these prepaid contracts, all-net flat rates are now possible.

A few years ago prepaid minute prices were very high. That has since changed and users can now make calls, surf or text for just a few cents per minute.

A smartphone without Schufa also has the advantage that no report is made to Schufa in the first place and it is neither queried nor taken into account in advance. For many people a mobile phone without Schufa is the only option.

Contrary to what many films show, however, an identity must also be provided for a prepaid contract in Germany. In England, by contrast, one can obtain prepaid SIM cards from vending machines and use them without complications.

Schufa check before concluding a mobile contract?

Mobile contracts incur costs. These costs can sometimes reach triple-digit amounts. With negative Schufa entries, mobile operators fear they may be left with the costs if the bill is not paid.

For this reason they refuse to conclude a mobile contract with the affected persons. With a mobile phone without Schufa this risk does not exist, since the costs for calls, SMS or mobile internet must be paid in advance. A Schufa query is therefore not necessary for prepaid offers.

Mobile phone without Schufa from a mobile discounter

For a few years now there have been mobile discounters on the market. They advertise uniform prices for calls to all networks, for texting or for surfing the internet. This has revolutionised the mobile market. Offers in which not only contracts but also smartphones are sold without a Schufa check should, however, be examined closely. An expensive smartphone such as a Samsung Galaxy or the latest iPhone will not be provided by reputable providers at a low price and high risk.

If you need a smartphone, have a negative credit rating and do not have the necessary financial means, it is safer to finance it with a loan despite Schufa. You can request such a loan free of charge at MAXDA.

With prepaid contracts – the alternative to contracts with a Schufa entry – there are no contract terms and the user can change at any time. Those who choose a mobile contract without Schufa sometimes have the choice between just the SIM card or a package consisting of a phone with the corresponding SIM card. With reputable offers there are, however, costs for the phone.

In the latter case the phone without Schufa is in some instances tied to the corresponding SIM card. A lock ensures that the phone cannot be used with another provider’s SIM card. To avoid this, many buy an unlocked phone (simlock-free), which can be used with any card.

Further advantages of a mobile phone without Schufa

Many mobile users are teenagers or children. They may run the risk of making long calls, surfing, downloading videos or buying games for the phone. To avoid falling into a debt trap in the first place, a prepaid contract is advisable.

Once the credit is used up, it can only be used again after a top-up. Until then the phone is only available for incoming calls and SMS.

Mobile contracts without a credit check

With these mobile contracts Schufa is not queried. However, there are not many network operators that offer such contracts because the risk is very high. Anyone who wants to take out such a contract must expect that either a deposit will be due before conclusion or that a cost limit is built in to protect against over-indebtedness.

A mobile phone without Schufa protects against high costs

With a mobile phone without Schufa you are on the safe side. Since fees must be paid in advance, there is no risk of getting into debt because of a high bill. That can happen faster than you think.

There are plenty of mobile providers across the different networks whose per-minute prices are moderate. What used to be reserved only for contract phones is now also possible for a mobile contract without Schufa – the all-net flat. Instead of a per-minute price, some mobile providers also offer a fixed monthly price in the prepaid sector for calls, texting or surfing with the phone.

This monthly price is immediately deducted from the credit (if available) after booking and the user can use the phone unlimitedly for one month according to the booked tariff. With such a choice it is no longer strictly necessary to conclude a mobile contract.

Even with a positive Schufa, a prepaid phone is worth considering if you pay attention to the right provider. Your own phone usage behaviour also plays an important role in the choice of provider.

What is Schufa anyway?

Schufa (Schutzgemeinschaft für allgemeine Kreditsicherung) is based in Wiesbaden and is a credit information company. The purpose of Schufa is to store certain data about every citizen concerning their finances. Every current account, every loan, every mobile contract or instalment purchase is stored there.

If there are difficulties repaying a loan or a bill is not paid on time and a dunning process is initiated, this is reported by the contractual partners to Schufa and results in an entry. This is intended to protect affiliated business partners from financial losses and customers from over-indebtedness.

When a mobile contract is applied for, the mobile operator first checks the data reported to Schufa.