The Schutzgemeinschaft für allgemeine Kreditsicherung (Schufa) is known in the minds of many Germans as the evil company that knows all our data and debts. The credit bureau is a credit agency that collects creditworthiness-relevant data on private individuals and commercial enterprises.
If you get into debt, you get an entry in the file. This allows future lenders to determine whether you are already in debt and if you are repaying on time.