Tip: How to improve your credit rating

You were rejected as a borrower by a bank for lack of creditworthiness? This is of course unpleasant, but no reason to head in the sand. 

Creditworthiness is not equal to creditworthiness

Creditworthiness is not equal to creditworthiness

First of all, the good news: even if your loan application was rejected by a bank because it was not sufficiently creditworthy, that does not mean that you basically have no chance of getting a loan.

Although credit institutions are likely to rely on credit ratings from credit bureaus such as the Schufa, this is usually just one of the factors that affect your credit rating.

The individual institutions apply quite different criteria, so it may be that your loan application with another bank easily granted.

Check recorded data of the credit bureaus regularly


Request a data overview regularly. This is available to you once a year according to §34 Federal Data Protection Act free of charge. It lists all the information that the credit bureau has collected about you and of course the rating of your creditworthiness.

Check the entries thoroughly. If any long-term obligations are listed, apply for their correction. Faulty entries that worsen the credit rating, namely, quite, for example, if a bank fails to notify the credit agency of a proper repayment.

Many accounts and cards worsen creditworthiness

Many accounts and cards worsen creditworthiness

You can also actively improve your credit rating. How exactly the credit scores of the credit bureaus are calculated is a trade secret. Therefore nobody knows exactly which factors are considered with which weighting. However, it is very likely that many parallel accounts and credit cards will degrade creditworthiness. If you have accounts and cards that you barely use, you may be able to improve your credit rating by canceling them.

Avoid installment purchases as much as possible

Also installment purchases and your payment behavior, for example, in the mobile bill are included in the calculation. Do not worry, once you’re sweating to settle an invoice on time, it will not affect your credit rating right away. However, you should avoid avoiding late payment.

You should also avoid installment purchases if possible. Even if it is the zero-percent financing of small amounts: Behind it is a tangible loan, which is usually included in your Schufa score. And not for the benefit of your creditworthiness. If you need a higher loan, you may be less welcome as a borrower if you need to finance small amounts of money.