Schufa Score

 

This score will determine how much credit that individual gets and how favorable the terms are. Now let's understand how the new Bonitätsscore by Schufa is calculated.

### Schufa Process

1. **Data Collection**:

Various kinds of data must be collected by Schufa. This information relates to your bank, credit institution, and your financial transactions. Such data is related to credit history, payment dues, and other leadings of your financial behavior.

2. **Credit History**:

Your credit history includes the type of loan, the loan contract, and timely payment habit in defaulting such loans. Timely default repayment will boost your score and increase the internal rating of your creditworthiness.

3. **Consumer Information**:

Consumer info, like your age, the church you attend, and whether one family member is living with you, are also factored in. Such variables can strongly influence your financial behavior.

4. **Mathematical Modeling**:

A complex mathematical model is employed in Schufa, and some factors are considered in assessing creditworthiness. Such factors may or may not remain consistent, meaning and priority of those factors may vary.

5. **Parsing and Analysis**:

The Schufa analyzes and parses data that will give insights about what factors affect your score. Such factors may include: paying bills on time, total amount borrowed, derived equity for your current earnings, etc.

### Importance of Bonus Score

- **Credit Acceptance**:

Your Bonus Score measures how accepting or not any financial institution will be toward lending you money. An individual with a high score is likely to gain more credit.

- **Calculating the interest rate**:

Interest rates are set for you, determined by the Bonus Score. A person with a higher score receives lower interest rates on average.