Overview

• 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.