Schufa Accelerates Creditworthiness Improvement

Schufa has announced a significant change in its creditworthiness assessment process, allowing blemishes on credit reports to be removed more swiftly. The duration for payment defaults has been reduced from 36 months to just 18 months, enabling consumers to enhance their creditworthiness through timely payments.

This new system includes a 100-day rule alongside other influencing factors such as debtor registers and insolvency announcements. Approximately 60,000 individuals stand to benefit from these updates, with Schufa managing data on 68 million people across Germany.

While the basic score reflects an individual's creditworthiness, there are concerns regarding the transparency of Schufa's calculation model. Consumers can now access their data through free copies and the Bonify app, which offers insights into their credit information.

Despite the advancements, critics are urging for clearer methodologies to ensure fairness and understanding in the credit assessment process. Chairwoman Tanja Birkholz believes these changes will yield advantages for both consumers and businesses, promoting a healthier financial environment.