How could banks be improved?

How to improve your credit rating

The Duden defines creditworthiness as the "impeccable reputation of a person or company with regard to their solvency or creditworthiness". It is therefore always important if, for example, you want to take out a loan, rent an apartment or conclude a smartphone contract.

There will be few business partners who enter into a contract with someone who is obviously unable or unwilling to pay. In addition, the corresponding creditworthiness can mean better conditions, i.e. lower loan interest.

So before you take out or apply for a loan, you should check your creditworthiness. Because even if you have had impeccable payment history and are debt-free, you may still be able to get something out of it and further improve your creditworthiness.

Request self-assessment

For the first self-assessment, anyone can request a free self-assessment from a credit agency such as Schufa. According to Paragraph 34 of the Federal Data Protection Act (BDSG), the credit bureaus must provide the consumer with a free self-disclosure at his request. This contains financially relevant entries with positive or negative information.

As a rule, the credit bureaus give the value as a numerical score (for example, the Schufa score is between zero and one hundred). This value describes the creditworthiness. Consumers or potential business partners and lenders can use it to get an idea of ​​financial obligations and payment behavior.

Which credit agencies are there?

Credit reporting agency


Request for self-disclosure


Holding AG

Private customer service center
P.O. Box 10 34 41
50474 Cologne

Request a copy of the data

Free copy of data, credit report € 29.95

Infoscore Consumer Data GmbH

Rheinstrasse 99
76532 Baden-Baden

Contact form Post

Contact form online

Information free of charge

Creditreform Boniversum GmbH

Hellersbergstrasse 11
41460 Neuss

Contact form online

Information free of charge

Crif Bürgel GmbH

Friesenweg 4
House 12
22763 Hamburg

Contact form online

One free self-assessment per year; each additional 7.80 euros

With these nine tips you can improve your credit rating

  1. Correct self-disclosure:

    If the self-assessment contains incorrect or no longer up-to-date data, consumers can and should have them corrected promptly. Incorrect records could be claims that have been paid or loans that have been repaid that have not been deleted. Such data worsen the so-called score value and thus the creditworthiness. The credit agency should preferably receive incorrect data and the request for correction in writing. If there are discrepancies or if the credit agency refuses to delete a data record, the consumer has the option of engaging the ombudsman.

  2. Make payments on time:

    Right at the top of the "How to improve my credit rating" list is your own payment behavior. Reminders, debt collection and affidavits deteriorate the credit rating extremely and damage the reputation. In order not to get into trouble in the first place, everyone should get used to paying bills immediately or at least within the specified payment period. By the way: if a customer pays on time, they can often reduce the invoice amount with a so-called discount. A reminder fee, on the other hand, only makes the final amount more expensive.

  3. Fewer accounts and cards:

    For many, a wallet full of credit cards is the epitome of wealth. The credit bureaus see it differently. They rate having many accounts and credit cards as negative. Business partners may ask themselves the question: "Does he want to cover them all? Can he afford that in the long term? Does he keep track of things?" It is better to cancel little-used credit cards and keep accounts to a minimum.

    Note: This is about payment accounts that can sometimes be in the red. Depots, fixed-term deposit and overnight accounts have no negative effects.

    Biallo tip: Our current account test will help you to find the best and cheapest account in your area.

  4. Loyalty pays off: No question about it:

    If you have a bank with which you are dissatisfied, change the credit institution. But choose wisely. For example, Schufa rates a frequent change rather negatively. Pick a bank, compare, and stick. This has a positive effect on the score.

  5. High overdraft facility is good, overdrawing is bad:

    The higher the credit line, the better the bank and credit agency assess the customer's creditworthiness. However, the bank customer should not overdraw the overdraft facility. Because some credit institutions deposit overdrafts with the Schufa. It is very bad for the creditworthiness if the bank cancels the overdraft facility.

  6. Avoid many small loans:

    The zero percent financing at the electronics store or the small loan at the furniture store: It is easy to take out a small consumer loan and pay off. But: Taking out many small installment loans has a negative effect on the credit score. It is better to take out a larger loan that can be used to finance several purchases.

  7. Pay off debt:

    If you are in debt, you should get rid of it if possible. Those who are debt-free get a loan and good terms more easily. Also, it is not advisable for consumers to pile up too much debt anyway. There is a great risk of losing track of things. And at some point the debt trap snaps shut.

  8. Income higher than expenses:

    In the case of a loan request, the bank compares the regular incoming payments with the regular obligations. Anyone who always has more expenses than income can definitely not take additional payments. If, on the other hand, there is enough financial leeway after deducting the expenses, it is likely that the applicant will repay the loan on time.

  9. Geoscoring:

    A thorn in the side of consumer advocates, but there is: the so-called geoscoring. Here credit bureaus (only the Schufa, according to its own statement, does not use it in 99.7 percent of all score calculations) include information about the residential area of ​​an applicant in their calculation of creditworthiness. Means: If a customer lives in a socially disadvantaged part of the city, this can affect his creditworthiness - regardless of whether he has always paid his bills up to now.

FAQ: The most important questions and answers

Who can query creditworthiness information?
According to the Federal Data Protection Act (BDSG), companies with a so-called legitimate interest are allowed to query. This includes companies that could have a financial risk of default. For example, shops that deliver consumer goods on account, check cell phone or credit applications.
Why are inquiries in my information?
These requests are visible to consumers for twelve months so that they can see which companies have requested information.
Should I forego credit cards altogether?
No. But the following applies: only one good is better than many.
My bank refuses my loan application, what can I do?
Check creditworthiness, inquire about the reason, inquire at another institute.
What data is stored at Schufa?
  • General information such as name, address, date of birth

  • General data about finances such as smartphone contracts, leasing contracts, credit and condition inquiries, checking accounts

  • Payment disruptions such as private bankruptcy, affidavits, dunning procedures
Are only negative characteristics stored?
No. Depending on the credit agency, only negative, only positive or negative and positive data are included in the score calculation. The Schufa evaluates negative and positive.

* Advertisement: Links marked with an asterisk (*) are advertising links. If you click on such a link, buy or complete something, we receive a commission. There are no additional costs for you and you support our work.