The SCHUFA is revolutionizing its scoring model with a new credit score aimed at creating full transparency for consumers. This innovative score allows users to understand the value describing their creditworthiness without needing statistical knowledge, based on twelve clearly defined criteria weighted in a point system.
The new SCHUFA-Score replaces six branch-specific scores that previously utilized around 100 evaluation criteria. This shift not only simplifies the scoring process but also results in a unified score applicable to both consumers and companies. The new model focuses on the most meaningful twelve factors, reducing complexity while maintaining a high forecast quality of over 60 Gini points, a standard measure of the reliability of creditworthiness predictions.
In pursuit of better transparency and fair evaluation, the SCHUFA aims to reduce payment risks, avoid over-indebtedness, and facilitate credit allocation. The organization has committed to four guiding principles: explainability, transparency, influenceability, and fairness. For instance, multiple inquiries within 28 days will now be counted as a single inquiry, and contract conclusions and inquiries in the same context will also only count as one process.
A key feature of the new approach is the planned SCHUFA account, which will provide consumers with free access to their stored data starting in the fourth quarter of 2025. An integrated tool will transparently explain the personal score, including the point system and influencing factors. Companies participating in pilot projects have confirmed the quality and value of the new model, which has also been developed with early input from the data protection supervisory authority.
The decision to renew the scoring system came in 2022 as part of a broader transparency initiative. The new score aligns with the requirements of a recent European Court of Justice ruling from February 2025, which called for greater traceability in scoring procedures. This reform is expected to enhance consumer trust and understanding of credit assessments.
As the SCHUFA has announced, the new score is set to launch alongside the existing scores in late 2025. Tanja Birkholz, the chairperson of SCHUFA, emphasized in a media briefing that the new score would reflect a creditworthiness forecast that consumers can recalculate using their own data. Previously, the SCHUFA operated with a complex system involving various branch scores, which often left consumers confused about how their creditworthiness was assessed.
Now, the SCHUFA will consolidate these scores into a single score based on twelve criteria deemed the most understandable and significant for forecasting accuracy. This includes factors such as payment defaults, the number of inquiries for current accounts, credit cards, telecommunications contracts, longer-term loans, and the age of the oldest credit card.
Furthermore, the new scoring system will eliminate positive and negative point values, adopting a maximum score of 999 points. This scoring will be derived from points awarded in each category, making it easier for consumers to see how their actions influence their scores. The SCHUFA aims to ensure that the new scoring model is not only accurate but also fair, allowing consumers to understand how they can positively influence their scores.
In a significant shift, the SCHUFA will also address previous criticisms regarding the opacity of its scoring criteria. Consumers will now have a clearer understanding of how their creditworthiness is calculated and what specific actions can affect their scores. The organization has faced scrutiny for its monopoly-like position in the market, leading to calls for greater transparency in its operations.
In response to regulatory pressures, the SCHUFA has already implemented changes to its scoring procedure, including the automatic deletion of information about completed payment disruptions after 18 months. This change, which took effect in December 2024, impacted around 60,000 individuals in its first month.
Moreover, the SCHUFA has announced that it is testing the new score with 17 banks and companies, aiming for a large-scale rollout by the fourth quarter of 2025. This new score is expected to replace the existing scores gradually, providing a more straightforward and consumer-friendly approach to credit assessments.
As the SCHUFA prepares for this significant transition, it is also working on educational campaigns and tools to help consumers understand the new scoring system. This includes an app that will allow users to view their personal scores and understand the criteria that contribute to their creditworthiness.
In summary, the SCHUFA's new scoring model represents a major step toward transparency in credit assessments. By simplifying the scoring process and providing consumers with the tools to understand and influence their scores, the SCHUFA aims to foster a more equitable financial environment. As the launch date approaches, consumers and industry stakeholders alike will be watching closely to see how these changes impact credit assessments in Germany.
