Schufa to Launch Transparent Credit Scoring System in 2025

The new system will enable consumers to understand and simulate the impact of financial decisions on their credit scores, addressing longstanding criticisms of opacity.

Schufa has announced a new credit scoring system set to debut later in 2025, promising greater transparency for consumers.
The new system will include tools allowing individuals to simulate how changes in financial behavior, such as taking out loans or canceling credit cards, affect their credit scores.
This move follows a European Court of Justice ruling in February 2025 that called for increased transparency in credit scoring processes.
Schufa's current scoring system, used by banks and companies to assess creditworthiness, has faced criticism for being a 'black box' due to its lack of clarity.
Schufa collects data on 68 million individuals in Germany, with over 90% of the stored information being positive, and provides 320,000 credit reports daily.