The Schufa for real estate financing

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You have certainly heard it before: Schufa. But what is actually behind it? Why is it important and how does it influence your real estate financing? In this article, we will take a closer look at Schufa and its role in the world of real estate financing.

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What is Schufa?

Schufa, or Schutzgemeinschaft für allgemeine Kreditsicherung, is not a governmental institution, as one might initially assume. Rather, it is a credit reporting agency utilized by thousands of contractual partners to obtain information about the creditworthiness of applicants. Banks, landlords, and other institutions use Schufa to assess risks and make decisions regarding loans or contracts.

What is the Schufa Score?

The Schufa Score is a central component of Schufa's evaluation. This score ranges from zero to one hundred and indicates the likelihood of you meeting your financial obligations. The higher the score, the better your creditworthiness. A score above 97.5% signifies a very low risk of default, while a score below 90% is considered critical, especially in the context of real estate financing.

What does Schufa know about me?

Schufa collects a wealth of information about you. This includes not only payment data but also personal information such as age and gender. Typical entries include the opening of checking accounts, application for credit cards, leasing contracts, mobile phone contracts, and much more. In Germany, there are estimated to be around 70 million user profiles.

How do I obtain a Schufa report?

As an individual, you can request a Schufa report about yourself at any time. This is free of charge and can be requested every three months. You can also obtain a paid credit report that provides more details. Schufa also offers the option of online access to monitor activities in your Schufa report.

What can I do to maintain a high Schufa Score?

Maintaining your Schufa Score requires attention and responsibility:

  1. Review your Schufa entries: Ensure that all entries in your Schufa report are correct and genuinely belong to you. Errors can negatively impact your creditworthiness.

  2. Cancel unnecessary contracts: Old credit cards, unused checking accounts, or outdated contracts can burden your Schufa report. Terminate such contracts when they are no longer needed.

  3. Avoid too many credit inquiries: Each credit inquiry is recorded in your Schufa report. Multiple inquiries in a short period can lower your score. Instead, use conditional inquiries with banks to avoid affecting your score.

  4. Pay your installments on time: The most crucial aspect is to pay your financial obligations on time and in the agreed-upon amounts. This demonstrates your reliability and strengthens your Schufa Score.


Schufa plays a crucial role in real estate financing. A good Schufa Score can secure better terms for you, while a poor score can hinder your chances of obtaining financing. Although Schufa is not infallible, it is in your best interest to monitor your creditworthiness and take the necessary steps to improve your Schufa Score. This lays the foundation for a successful real estate financing and a better financial future.