What is a credit bureau information?

The Credit bureau today

The Credit bureau today

Today, the Credit bureau has its headquarters in Wiesbaden. Their business purpose is still to provide lenders with data on payment of persons, which allow conclusions on the creditworthiness and payment behavior of these persons and thus to provide the lenders with optimal protection against possible defaults. In order to be able to conduct its business, Credit bureau has collected and archived data from almost 70 million natural persons as well as from more than 4 million companies.

Every year, Credit bureau employees are confronted with over 100 million requests for credit from people they have to answer. Requesting companies are, for example, mobile service providers, mail order companies or property management companies. However, private individuals also ask, because they want to know what the Credit bureau has stored about their person to data.

The content of a Credit bureau statement

The content of a Credit bureau statement

If the Credit bureau receives a request for the creditworthiness of a person, it will be processed and answered. Credit bureau answers such requests on the basis of the following data:

  • Contact details of persons (name, gender, date of birth, place of birth, maiden name),
  • Address data (current and former home addresses),
  • Terms of payment (current loans, current leases, existing accounts, existing seizure protection account, existing credit cards, telecommunications accounts, customer accounts with mail-order companies),
  • Payment behavior (reminders of creditors, open claims of creditors, litigation concerning open claims of creditors),
  • misuse of accounts or credit cards,
  • Submission of the affidavit, bankruptcy proceedings applied for or opened, consumer insolvency proceedings),
  • Industry conditions,
  • Terms and conditions for entering into business relationships.

Recommendations

Anyone who wants to apply for a loan should inquire in advance with the Credit bureau, if and if so, what data about his person are there and stored. In general, it is advisable to regularly ask the Credit bureau for his data in order to check their timeliness and not, for example, when experiencing a loan request to experience a nasty surprise, because the stored at the Credit bureau personal data is incorrect or not up to date.

Scoring

The Credit bureau then provides a statement to the inquirer as to what the statistical probability is that the potential business partner will settle his debts on money or credit on time.

Who already knows that there is a negative Credit bureau information about him,

Who already knows that there is a negative Credit bureau information about him,

but still requires a loan or would like to conclude a mobile phone contract, should research the Internet for banks or Mobilfunkprovidern, the loans and mobile phone contracts even in the presence of a negative Credit bureau information or completely without Credit bureau information sufficient.

More and more companies recognize the danger posed by the Credit bureau in terms of a possible restriction of business relations. For a long time was namely a negative Credit bureau information as an absolute hindrance to credit inquiries, installment loan agreements or mobile phone contracts.
However, since telecommunications or borrowing are legal transactions of daily life, many providers have since renounced the Credit bureau information.

In order to be able to complete the desired transaction despite the negative information provided by Credit bureau, it may also be that the person concerned offers cash or deposits corresponding securities. For example, many mobile service providers today also provide mobile subscribers with negative Credit bureau information, even in conjunction with a new smartphone. 

However, it is not uncommon that the smartphone then not in monthly installments, but in cash has to be paid in full upon signing the contract.

Even loans and loans can sometimes be applied for and granted despite negative information from Credit bureau, provided that the applicant can, for example, provide sufficient collateral security or a solvent guarantor.

Legitimation and prevention of Credit bureau requests

Legitimation and prevention of Credit bureau requests

Unfortunately, Credit bureau inquiries in business dealings today are absolutely normal. Every consumer and every company has the right in principle to make a Credit bureau request with regard to historical data. Also for data protection reasons and considerations out, this can not be effectively prevented, since the Credit bureau request serves the credit protection. The police, the enforcement authorities and the tax investigation have long been using the Credit bureau data to fulfill their official duties. Credit bureau justifies this by pointing out that its activity effectively protects every lender in the Federal Republic of Germany and also helps, for example, to protect the consumer from over-indebtedness.

Error rates and abuse

Research has shown that the data of Credit bureau are generally subject to a very high error rate.
Many companies, such as telecommunications companies, are also putting their customers under pressure with the threat of a negative Credit bureau entry, if these customers are affected by insolvency or personal bankruptcy.
There have also been cases where telecoms companies have offered their customers negative Credit bureau registrations if they have announced their intention to terminate their telecom contract.

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