A move may cause credit bureau to suddenly downgrade its creditworthiness and bank loans. Above all, unfulfilled credit lines are threatened by a downgrading of the sector scores. The base score, however, could be a “duck” of Germany’s largest credit bureau.

Payment history

Payment history

Time and again, consumers report that their credit rating has deteriorated after a move. This is because credit bureaus consider the place of residence and the number of transfers as a statistical feature of creditworthiness. Geo-scoring analyzes the payment history of the environment down to five households.

Flexible credit lines such. Framework loans are particularly affected by the problem. Banks can often cancel the unused portion without notice. If you learn about the lowered score, you seem to be taking advantage of this opportunity. Loans already paid out, however, are usually not terminated simply because of a lower score.

Consumers should not be misled by the credit bureau base score. This value is intended to indicate the statistical probability with which a person fulfills his obligations. The base score has only been around for a few years and, of course, information about its properties is spreading slowly. Nevertheless, doubts about the purpose of the base score are appropriate.

Credit score

Credit score

For one thing, the score itself seems difficult to understand. True statistical surveys are difficult to realize. However, reports in Internet forums suggest that there is a correlation between the base score and the creditworthiness. The connection does not seem to be really plausible. On the Internet a lot is discussed about the scores probably also because most people are reluctant to talk about their score in the circle of friends.

On the other hand – and this is even more important – there is no plausible connection between a person’s base score and their industry scores. Person A may have a higher base score than Person B, but worse on industry scores. According to credit bureau, the base score is based on the data stored on a person. It may be questioned what the base score actually serves vor and especially to whom.

The credit rating of credit bureau can have a big impact on contracts. More transparency would therefore be desirable. With its online access (www.meinecredit bureau.de), credit bureau offers a portal in which consumers can see all their data after having registered for a fee. The base score is also visible the industry scores are not. Users can also be notified by SMS about changes in their dataset.

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