Credit bureau entry: How long do debts remain visible there?

The credit bureau stores the data on debts and loans, but also on early repayments. How long data will last and how you can use the directory for yourself.

If you hear the word credit bureau in Germany, some people get nervous palpitations. 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.

In fact, however, the credit agency is an important organ of the economy. If you have debts, your data is stored. If you want to take out a loan, banks get security and an overview of the financial situation of potential customers via the credit bureau. However, the entries do not last forever and can even be used to your own advantage.

Debted: Who is the credit bureau and why does it have my data?

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 whether you are repaying on time – minimizing the risks of losing money and non-paying customers.

First of all, every person who owns a current account is registered with the credit bureau, because according to the consumer advice center, the opening of an account is already reported there. Even when taking out a loan, the credit bureau gets a message and an entry, but that's not bad. Only if the debtor pays his installments too late or not at all, the loan is terminated or even legal action has to be taken, there are so-called negative entries in the credit bureau.

Credit bureau stores data on debts. That's how long they stay there. (Symbolic image) © Imago

However, the credit bureau can not only get negative entries from banks. Also unpaid bills from retail and online trading, lack of rent from commercial housing companies, unpaid electricity or telephone bills, etc. can be reported there. However, creditors from the private environment, i.e. landlords or other private individuals, cannot report anyone to the credit bureau.

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Credit bureau entries: This is how long debts remain noted

Anyone who takes out a loan or otherwise gets into debt gets an entry at the credit bureau. But that doesn't mean that this data is set in stone forever. When loans have been paid off or debts have been repaid, the entries are also removed.

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Negative entries, i.e. unpaid invoices or reminders from financial institutions, are noted and remain there for as long as the debts exist. Once these have been settled, the data is normally kept for another three years and then deleted. Private insolvencies are to be stored for only six months. In the case of loans or guarantees, the entry is removed immediately as soon as the term has ended and all debts have been settled.

One advantage: Incidentally, this also applies if, for example, you pay off a loan earlier than planned. Then the respective financial institution must send the credit bureau a notification that the debts have been settled early. The early repayment entry is also stored for three years, which can be advantageous for future loans because it makes the customer more attractive to banks.

Obligations and rights: What is the credit bureau allowed to do and what rights do I have?

First of all, the credit bureau is allowed to store what is reported to it by the contractual partners, i.e. banks, credit institutions, energy suppliers, telephone providers, etc. However, as a debtor, you also have rights, including the accuracy of the data. If you want to get an overview of your entries at the credit bureau, you can obtain a self-disclosure. This is possible, for example, with an online order from the credit bureau. There, interested parties can make a copy of the data in accordance with the GDPR Art. 15.

If there are errors in this data, for example because the entries are incorrect, outdated or incomplete, debtors have the right to rectification. To do this, you turn to both the credit bureau and the creditor who reported the debts. As long as the entry is corrected, it will be locked. Whether the data is correct can be checked by ordering another free copy of the data.