Credit rating is an economic information agency that collects information about almost everyone in the country. It communicates with its contractual partners such as dealers, banks and companies to provide information about the creditworthiness of the individual. For this, the so-called credit rating score is determined. It is used to assess your creditworthiness in the future. The higher your score, the better your credit rating.
An internal credit rating procedure was developed for the calculation, which determines risk probabilities. The credit rating score is determined based on a person’s stored data, such as the number of payment defaults or credit activities. This will be given to the contractual partners on request. The score serves as a basis for decision-making and determines the outcome of a credit request.
The different industries have different requirements for their borrowers. credit rating recognized this and published a sector score. This score is tailored to the requesting industry, so the score is individually adapted to the industry. This gives telecommunications companies a different score than retail companies.
The secret calculation bases of the credit rating Score
credit rating is not prepared to publish the basis for calculating the score because it fears that criminals could influence the score in their favor. For example, the following aspects are probably the basis for the calculation of your credit rating score:
- Registered negative characteristics
- change of residence
- Many loan requests
- bank accounts
- Borrowing like frequent small loans from mail order companies
Our tip: Avoid frequent loan requests
You can also influence the credit rating Score yourself. For example, if you are looking for an installment loan, you should make sure that the bank only makes an “inquiry loan terms”. The reason: Direct credit inquiries are noted at credit rating and, if used frequently, have a negative impact on the score result. Our specialists for installment loans therefore pay close attention when making a comparison of the various installment loans, just to make a condition request.
Data protection at credit rating
credit rating and its contractual partners are subject to the Federal Data Protection Act (BDSG) when it comes to the transmission and storage of personal data. credit rating has coordinated its working methods with the supervisory authorities for data protection, thereby ensuring that your interests and the interests of the citizens are safeguarded. As a private customer, your bank will inform you about which data about you is stored by credit rating and for what purpose. Your bank will also give you the address of the credit rating office responsible for you.
The credit rating clause when applying for a loan
As a customer of a bank, you are asked to sign the so-called credit rating clause. By signing, you agree that your data may be transmitted to credit rating and passed on to other contractual partners. With the clause, you consent to your data being passed on to credit rating partners. Specifically, this means: credit rating receives information from its contractual partners and from credit rating about you.
If you apply for a loan, be it an installment loan or a construction loan, you will be informed, among other things, that data about non-contractual processing and information from public directories and official announcements about you may be stored. Special consent according to the Data Protection Act is not required to store such information.
Query data regularly from credit rating
Data protection at credit rating is regulated by legal requirements and coordinated with official authorities. That means your data is safe. Nevertheless, you should be aware of the data that credit rating stores about you. You can quickly determine this with credit rating information. You can correct incorrect data immediately and thus increase your chance of a cheap installment loan.