Questions about creditworthiness and creditworthiness
The credit rating also plays an important role in loans without Schufa. Lenders need to consider how likely it is that the borrower can repay the loan. Only then can they calculate the necessary interest and determine whether it is economically responsible to lend a loan despite Schufa.
How is the credit rating determined?
Two factors are crucial in terms of creditworthiness: Personal creditworthiness allows an assessment of how reliable and willing to pay the customer is. So, in principle, it indicates how likely it is that the customer wants to repay his loan. On the one hand, professional and vocational qualifications are included. On the other hand, this is also the point at which the Schufa information for banks becomes important. Since data on the willingness to pay is collected here and missing payments are noted, it is difficult to obtain a loan despite Schufa.
The second essential feature is the economic creditworthiness. It indicates the likelihood that the borrower can repay his loan. The most important data for the investigation are proof of income, financial security and already existing debits. Current fixed costs and the matrimonial property are included in the assessment of the creditworthiness.
For loans without Schufa, the economic creditworthiness is generally of much greater importance. For credit abroad, the lenders do not rely on the Schufa, but the credit rating is still checked.
How are credit ratings determined?
Basically, there are no uniform criteria because there are different suppliers in the market. What they all have in common is that the determined score should make it possible to read the probability of default directly from it.
Therefore, it is stated from the outset in percent, or the classifications are equipped with corresponding percent probabilities. A high score is usually good though. The probability of selecting the Schufa score is calculated, for example, by subtracting the score from 100.
Do multiple credit requests worsen the credit rating?
Every German lender submits a request to Schufa before granting the loan in order to check the creditworthiness of the customer. As credit inquiries are also noted in the Schufa, a debt-free loan has long been the only way to prevent the credit rating from deteriorating.
However, it is now more or less common for credit seekers to obtain more than just a loan offer. Previously, every credit request was noted in the Schufa, which led to the credit rating deteriorating. Higher interest rates and low chances of a loan by the Schufa were the result. In the meantime a distinction is made between credit conditions and hypocredit conditions. For non-specific inquiries, the Schufa score does not deteriorate and is also not visible to lenders. However, concrete credit offers still lead to a lower score and are stored over 10 years.
Therefore, before inquiring about offers, interested parties should ask how they are handled by the Schufa in order not to worsen their credit opportunities. By contrast, loans without Schufa are not included in the score at all, so that it is much easier to compare credit offers here.
Is the creditworthiness meaningful?
The credit rating is only conditionally meaningful. The classification usually includes subjective influences. The criteria used, as well as their weighting, vary from auditor to auditor, so that the credit rating does not give an objective picture.
Another excellent example is Schufa’s scores, which for the most part contain data from peer groups that can significantly worsen Schufa information without the borrower being guilty of anything wrong. Nevertheless, he receives because of bad Schufa information no credit at most banks or must expect higher numbers. Credit checks are therefore not only based on subjective characteristics, but are sometimes only partially influenced by impeccable behavior.