The score indicates how the risk of default is estimated for the individual. Jump to What’s a good credit bureau score? The question of what a good credit bureau base note is and how high it must be in order for a bank to lend a loan for a lease contract or to complete a mortgage can not be answered in its entirety. The lower score, the more risk companies take when doing business with you. Therefore, it is in your best interest to have a good credit bureau score.
Credit bureau score and credit bureau entry
As a business information agency, the credit bureau is able to store a lot of information about almost all German citizens. The company evaluates the information and endeavors to determine the creditworthiness of consumers. The credit bureau passes this information on to companies and credit institutions: With information provided by credit bureau on your person and on the basis of further information, they can judge your creditworthiness as a customer.
credit bureau contributions are not per se rejection, but can even give the consumer an advantage, for example, better credit conditions and faster business. The credit bureau and the credit bureau entries – what does that mean? credit bureau – short for: protection company for general credit insurance – is an information agency that collects and processes consumer data. Based on this information, credit bureau contractual partners, such as credit institutions and retailers, can better assess the creditworthiness of potential customers.
Whether you are applying for credit, signing a mobile phone contract, swapping your electricity supplier or renting a vehicle – the appropriate provider will usually first find out about you at credit bureau. Increasingly, the landlords also call the so-called credit bureau self-information from potential tenants. Thus, the credit bureau has influence on different areas of consumer life.
In the credit bureau there are 813 million statements on 5.3 million companies and 67.2 million people (as of 2017). One can therefore assume that there is probably also a credit bureau entry for your personality – every adult German would have to be included in this number of sentences. However, a credit bureau registration per se is not a cause for concern – problems, such as borrowing, usually only arise if the credit bureau registration is detrimental.
However, over 90% of all credit bureau entries contain no disadvantages. credit bureau itself does not collect information, but only collects information that it receives from its approx. 9,000 contractual partners. Above all, if you set up a customer account or rent a vehicle, the lease usually includes the so-called “credit bureau clause”.
By signing the contract, you agree to the transfer of data to credit bureau. For mail order companies, the credit bureau clause is usually included in the General Conditions of Sale. The credit bureau also collects information from state debt register and other statements. At credit bureau, for example, a corresponding note is created on request: Loan conditions (information is deposited as a receipt for the person concerned, but not forwarded to third parties).
Change of electricity supplier (new utility request is kept as evidence for the party concerned, but not shared with third parties). In addition to personal information such as name, birthday and address, credit bureau also receives information on the repayment term and possible payment defaults. Once the entire claim of the loan has been settled, this can have a favorable effect on your result.
In addition, credit bureau is informed by its partners about mobile phone contracts (mobile phone accounts) as well as lease and installment agreements (contract periods, possible payment defaults or premature cancellations). If your card is picked up or your account is deleted from the house bank, it will also be included in your credit bureau entry. The credit bureau is known for how timely and secure you pay your bill – the credit agency has also information about reminder claims.
If you undertake a guarantee, it will also be registered with the credit bureau. The credit bureau also records information in the context of foreclosure proceedings, for example, the submission of a sworn statement or the application for a consumer insolvency proceedings (private bankruptcy). According to 34 Federal Data Protection Act, you have the right to know which personal information is available to credit bureau.
Once a year, you are entitled to a so-called free overview, which lists all credit bureau data about you. These can be requested via the credit bureau website and receive your information after about 3 weeks. The credit bureau credit check is quick and easy.
for open questions at the end of the fourth calendar year. In the case of titled claims, the information may be retained for a longer period. Information from the debtor registers of the district court3 years. The credit bureau database can be faulty or obsolete entries were not restored correctly.
If you find incorrect information in your credit bureau information, you can correct, delete or block the relevant entries. The credit bureau clarifies the facts as far as possible in direct agreement with the reporting institute. Throughout the duration of the investigation, your opposition will be recorded in the database and third parties will not be informed of your personal information collected during this period.
If the credit bureau refuses to correct or correct incorrect entries, you can contact an agency, the so-called Ombudsman for the credit bureau: The credit bureau is the only information point in the Federal Republic of Germany with an Ombudsman procedure for consumers: only the credit bureau is required to make incorrect entries to remove. A complete deletion from the credit bureau is therefore not possible and would also have a disadvantage.
Companies like For example, ABA checks your personal details through a credit bureau query before you can set up a user account. The information offered by the credit bureau also enables quick and easy identification and registration, especially on the intranet. Therefore, you may not be able to log in as a user without entering your personal credit bureau data.
The credit bureau calculates the so-called credit bureau score from all available inputs – both positive and negative – according to a mathematical-statistical procedure. The credit rating of a personality is the better, the better it is. However, a score of 100 or more is not possible because the death of one individual always creates a risk of default for all.
Which positive and negative contributions are there at the credit bureau? credit bureau rates the contract behavior of the customers with a positive result. Bookings via a current account, mobile phone contracts with terms, leases, loans or shipping accounts are generally considered as positive bookings. It should be noted that credit institutions and companies have trusted the person concerned and consider him creditworthy.
Negative bookings include loans or accounts terminated by the house bank, late payments, dunning procedures or entries in public debt directories. The credit bureau differentiates between the general base note, which is updated every three months, and industry-specific notes, for example for banks or distance selling. Unfortunately, the credit bureau does not disclose how the credit bureau score is calculated.
The scoring procedure is only familiar to the responsible data protection authorities and the representatives of the federal states and the state. Accordingly, there are several assumptions about what is included in the score value. It is often argued that an allegedly poor neighborhood would be detrimental to credit bureau values. Although the credit bureau may use geographic information: credit bureau explains, however, that it only contains geo-information if no other information was available to a consumer.
However, the extent to which they are included in the score is controversial. Consumer advocates fear that a frequent change of residence will adversely affect the credit bureau values. The current account accounts also have an impact on the credit bureau score. If you have no current account, credit bureau lacks important information. For this reason, the credit bureau puts the score on the safe side. However, some current accounts and regular account changes seem to be rated unfavorably by the credit bureau.
The same applies to the credit card: One or two cards prove that the providers consider you creditworthy. The installment payment by credit card can also reduce the credit bureau score. The credit bureau points also play a particularly important role in discussions with financial advisors before buying a house.
Contrary to the rumor, the contractual use of the disposition has neither an adverse nor a detrimental effect on the credit bureau score. In this case, the house bank carries out a credit bureau request, which is then also recorded in your credit bureau data. Check your credit bureau data regularly and arrange a troubleshooting.
Consumer advocates criticize the validity of the credit bureau points. Many aspects relevant to the creditworthiness of a personality are not taken into account. These include, for example, the salary of a natural or legal person and the assets available. The credit bureau does not have this information at hand. If the credit bureau receives a credit report from you before concluding the contract, the respective industry score will generally be sent along with it.
Unless you have the credit bureau expressly block the transfer of the score value. In such situations, the parties receive credit information without a score. Blocking score adoption can be detrimental in some situations because counterparties can score less than the actual score. For example, the grade may affect the terms on which a loan is granted to you or prevent insurance companies from entering into a contract with you.
If your result is bad, you can pay more interest or you can not even get a credit at all.
Mail order and online retailers often use the score to determine which payment options they provide to their customers. Consumers with a poor credit bureau score often do not have the option of shopping at their own expense. In the credit reports of the credit bureau, which you can present eg to your landlord, no score value is deposited.
This avoids that tenants allocate living space exclusively on the basis of score values. The credit bureau rating is only one of many other credit quality features that companies use to make their decisions. A decision of the Federal Court of Justice (BGH) encourages consumers and affirms that companies are not allowed to threaten defaulting payers with just one credit bureau entry. According to the BGH ruling, Wodafone had wrongly acted with the threat of an entry in the credit bureau file on the clients who had defaulted in the past.
Otherwise, the customer could issue an invoice for fear of the unjustified consequences of a credit bureau entry. If you mark the field in the registration form (“Current Probability Values”), you will also find your credit bureau store in the data information. In the following credit bureau basic evaluation you can read what this means:
For example, if you are denied a mobile contract because of a low rating, you generally have little chance of convincing the provider to change your mind. In addition to the scores in percentages, the credit bureau also holds various scores with a score for different industries. As part of the credit bureau self-assessment you will also receive a form with probabilities.
In addition to a score value and a rating level, you can also understand the probability of fulfillment here. In the credit bureau the risk from ++ to – is given, which means the numbers mean: If a bank does not grant you a loan because of your credit bureau score, there are special providers that can do without credit bureau. Even a personal loan is possible despite the negative credit bureau.
A negative credit bureau not only leads to a strong limitation of lending, but can lead to a refusal even at the conclusion of the contract or the request for a current account. However, that does not mean that humans have to do without them altogether. Despite the negative credit bureau there is an alternative to the current accounts.