Schufa: Why you need it and how to get it for free
When looking for an apartment to rent in Germany, most likely the landlord/ management company will request you to provide several documents, proving you’re a decent tenant and can (and will!) pay the rent on time. One of these documents is called Schufa, often also referred to as “Bonitätsauskunft”.
What is Schufa?
The German credit score. It’s a report indicating your creditworthiness, based on your historical financial behavior. A company called “Schufa Holding AG” is collecting data from different sources, such as banks, credit card companies, mobile phone providers and other contracting parties, and creates a report about your financial reliability.
Didn’t pay a loan on time? Your Schufa score will decrease. Are you late with paying bills? Likewise. Having too many credit cards? The same. You get it.
Why do you need a Schufa document?
As mentioned, you’ll most likely be requested to present your Schufa to your future landlord. The report ranks your financial stability and lets the landlord know if you’re a reliable payer or not. The final score you get represents the statistical probability with which you’ll meet your payment obligations and is calculated on the basis of past experience. Almost every financial step you’ll make in Germany will need to look at your Schufa: when signing a contract with a cell phone/ internet provider, asking for a loan, mortgage, etc.
What is a good Schufa score?
A score over 95 is considered to be very good.
How to get the Schufa for free?
You can get it for FREE once every year. You order it online and the report will be sent to you by post (the free version is only available once a year). Keep in mind that it can take up to four weeks until the document is delivered.
This is how you order your free Schufa online: Click on this link, and you’ll have 2 columns, one of them is for free: It’s called “Datenkopie”. Click on Jetzt bestellen (= order now) and you’ll be redirected to a page with a form to fill in.
Download your Schufa online
If you prefer to order your Schufa online and get it right away, you can simply order the “Bonitätsauskunft” on the Schufa website for 29,95 €.
You can also receive it for 29,95 € on the spot in different banks in Germany. In this link you can locate the closest branch and just go there and ask for a Schufa (the service is open for all, no need to be a customer in that specific bank).
Important to know
The Schufa score does not depend on your income, only on your behavior!
For foreigners, the issuance of a SCHUFA report is usually only possible if you have already lived in Germany for some time and have a German bank account. If this is the case, you will need some other proof of your financial reliability. This could be, for example, a reference letter from your current bank or a voluntary financial guarantee from a third person, e.g. a relative in Germany.
The Schufa will continue to collect information about you even after you leave Germany. So make sure you’re not leaving any open payments behind.
Always try to have a good Schufa score, otherwise, it can backfire.
Do you have further questions? Feel free to get in touch with us.