SCHUFAs

Schufa, officially Schufa Holding AG, is Germany's largest private credit bureau. It collects and stores information about individuals' credit histories and supplies this data to lenders, landlords, and other service providers to help assess credit risk. It operates under German and EU data protection law and is not a public authority.

Data sources include banks, credit-card issuers, telecoms, and other creditors, as well as public records. Recorded information typically covers outstanding debts, repayment history, defaults, contract status, and basic personal identifiers; inquiries about credit can appear on a consumer's record for a limited time.

Schufa-Score: The data is condensed into a numerical score that is used to gauge creditworthiness. Scores are used by banks and other providers to decide on loan approvals, rental contracts, and service terms. The exact scoring algorithm is proprietary.

Access and rights: Consumers can request access to their Schufa data and obtain a report under data-protection law. Inaccurate items can be disputed and corrected; individuals have rights under GDPR to access, rectify, and limit processing where applicable.

Impact and criticisms: The system can affect housing, financing, and utilities. Critics point to opacity, potential inaccuracies, and consequences of negative entries. Regulators monitor compliance with data-protection rules to balance risk assessment with consumer rights.