The SCHUFA (Schutzgemeinschaft für allgemeine Kreditsicherung) is a German commercial information agency, also known as a credit agency.
Simply put, Schufa collects data on your payment history and also provides this information when requested. This may come from banks, electricity suppliers or mail order companies. Schufa evaluates your data and assigns a so-called Schufa score. This score indicates how likely you will fully pay off your loan on time.
As a rule of thumb: the higher your Schufa score, the lower the risk for the bank and the higher the probability for a loan and an attractive interest rate.
Our partner banks also work with other credit agencies besides Schufa, e.g. Creditreform or Infoscore.