Obtain a Schufa report for free

As a consumer, you have the option to obtain a Schufa report for free. What Schufa does exactly, what this means for private individuals and when a Schufa report is really free, you will learn in this article.

The Schutzgemeinschaft für allgemeine Kreditsicherheit (SCHUFA) operates in the legal form of a holding AG as a private credit bureau in Germany. As a joint-stock company, Schufa Holding AG is supported by shareholders such as credit banks, savings banks, private banks, trading companies and other service providers as well as cooperative banks.

The company's purpose is to protect lending credit institutions and trading companies from payment defaults and to help borrowers avoid overindebtedness.

According to the Federal Data Protection Act (BDSG), every person is legally entitled to request a Schufa report free of charge about the data stored on them at Schufa and to have it corrected if necessary. A Schufa report can be requested free of charge in writing by any person once a year.

Schufa report for free - what does Schufa mean?

In 1927, Schufa was originally founded in Berlin as the Schutzgemeinschaft für Absatzfinanzierung by the brothers Kurt and Walter Meyer and Robert Kauffmann. Subsequently, 13 additional Schufa companies were established, which merged in 1952 to form the Bundes-Schufa e.V. Only in 2000 was Schufa restructured from the Bundes-Schufa e.V. into the legal form of a joint-stock company as Schufa Holding AG.

Schufa's contractual partners are divided into three classes A, B and F. A-business partners are credit card institutions, credit institutions and leasing companies; they receive both positive and negative attributes from Schufa.

B-business partners include trading companies, mail-order companies, e-commerce companies, telecommunications companies and other companies that provide deliveries and services on credit. They receive any existing negative attributes from Schufa.

F-business partners, such as debt collection agencies, obtain address data from Schufa, but only on the condition that the respective person has consented to the Schufa clause in the respective contract.

Since 1977, data processing has been subject to the Federal Data Protection Act. With the Schufa ruling of the Federal Court of Justice, the Schufa clause was issued in 1985. Since then, customer data may only be transmitted to Schufa with their consent.

The transfer of data has been regulated since 01.04.2010 in §28a of the Federal Data Protection Act. Personal data in connection with a claim may only be transmitted under certain conditions. In addition to data from the Schufa clause, Schufa collects and stores data from public directories and official publications.

Schufa includes external organizations such as the Zentralstelle für Kreditinformation (ZEK), as well as its business partners at credit institutions, leasing companies, telecommunications providers, mail-order and trading companies or energy suppliers and also public sources such as, for example, the debtor register of the local court in its data collection.

With consent, Schufa records contact details, positive attributes such as contractually complied business transactions, and negative attributes such as non-contractual payment behavior or court-enforced executions. Any person can request the Schufa report free of charge regarding the data recorded about them.

Schufa report free and chargeable

The Schufa report informs requesting persons and institutions which data has been collected depending on the respective interests. Schufa provides information to companies in the context of Business-to-Business (B2B) and Business-to-Consumer (B2C) as well as Schufa reports free of charge for private individuals, although costs can also arise here.

Credit institutions receive positive information and any existing negative attributes of a borrower this way. Schufa reports contain information about natural persons: the core data about the queried consumer, information from public directories, official announcements and information about any contractually non-compliant dealings.

Schufa report free for private individuals

In the area for private individuals, a Schufa report <strong>collects information free of charge</strong> about data that has been gathered on the respective person.

Included in the free Schufa report are contact details such as surname, given name, maiden name, date of birth, gender, place of birth as well as current and former addresses. Data provided by contractual partners is also listed. This concerns:

• Loan agreements and leasing contracts including amounts, terms and early repayment
• Opening of a checking account and protected account
• Issuance of credit cards
• Setup of a telecommunications account
• Customer accounts in retail and mail-order business.

Furthermore, the Schufa report also provides free information about negative payment behavior. This includes, in particular, claims that are due, dunned and undisputed as well as unpaid claims following a court decision and their enforcement. Misuse of a checking account or credit card account despite a usage ban is also recorded.

Data collected from public directories and official announcements that are included in the Schufa report free of charge include affidavits of insolvency from debtor registers, arrest warrants to provide affidavits, applications and openings of private insolvency proceedings as well as the rejection or discontinuation of private insolvency proceedings due to lack of funds.

In addition, a Schufa report can also contain free information about a requested identity check on the internet. For example, e-commerce companies or online auction houses check personal data such as correct names and addresses.

While Schufa reports such as the creditworthiness report, the Schufa report via the Internet or the Schufa report about companies are chargeable, the private Schufa report is free of charge.

Schufa report for end consumers

The Federal Data Protection Act (BDSG) stipulates that every citizen has the right to view the data recorded about them at Schufa and, if necessary, have it corrected. Paragraph 34 of the BDSG specifies the data overview that every person can request in writing once a year as the so-called Schufa report free of charge.

The correct forms are available on the internet. This Schufa report is free of charge and intended only for private inspection. It should not be passed on (e.g. to the landlord).

Alternatively, a self-written application for a Schufa report free of charge can also be submitted. Examples and sample applications for the Schufa report free of charge are made available on the internet.

How does the Schufa report remain free?

In order for a Schufa report to remain free, the alternative order of a creditworthiness report must not be ticked and filled in on the Schufa application form.

A creditworthiness report is, in contrast to the Schufa report intended for private inspection, not free of charge. The Schufa report online via the internet is also not free. Fees are also charged for the online report as well as registration in Schufa's internet portal.

The mandatory fields of the application form for a Schufa report free of charge are the personal details, such as full name, current address, date and place of birth, as well as the free order of the data overview according to §34 BSDG and, if desired, the current probability scores.

Schufa report: The content

The application for the Schufa report is free of charge; for the purpose of identity verification a copy of the identity card or passport as well as, if applicable, a registration certificate must be attached. German citizens do not require a registration certificate.

The current probability score is a statistical score value that provides information about the likelihood of a consumer default. This percentage base score value between 1 and 100 is an independent orientation value that is recalculated every three months.

The higher the score value, the lower the theoretical default risk. The indication of this value is also free of charge in the Schufa report.

While a 95 percent probability indicates a low risk, values below 80 percent are considered a high probability of default and below 50 percent very critical. The base score is based on the information stored about a person at Schufa and is calculated using statistical methods. The exact value can be obtained free of charge from the Schufa report.

Information such as past payment problems, previously concluded credit transactions including number, type, duration and scale, credit activities over the last 12 months as well as credit histories can be included in the calculation of the base score for consumers in the free Schufa report. This score is provided free of charge in the Schufa report.

Positive information, for example about contractually compliant payment behavior, is also taken into account in these categories. Normally, judgments about addresses are not included in the score calculation.

Schufa report free – a conclusion

A Schufa report can be obtained free of charge if you know how to request it. On Schufa's homepage you must absolutely select the “Datenübersicht nach § 34 BDSG”, otherwise the Schufa report is not free.