How can I improve my credit rating?

If you quickly want to improve your credit rating before taking a loan, you should submit a subject access request. Check that the data contained therein is correct. Errors may occur in data storage and will affect your credit rating negatively. The data stored with credit agencies form an important basis for the evaluation of your creditworthiness. In principle, German banks do not grant credits without first examining the applicant's credit rating by means of an enquiry. Besides the general decision about granting credit, the interest rate may be dependent on the credit rating.


Improve credit rating by correcting data

Credit agencies can make mistakes too. A credit report may thus contain outdated or incorrect data. It can happen that a long-since repaid loan has not yet been deleted. Banks, but also credit agencies, receive data from contract partners such as mail order companies, online shops, telecommunications providers, collection agencies and other institutions. An unjust default notice that is included in the credit report despite successful objection lowers a credit rating significantly. You can improve your credit rating by asking the credit agencies to delete the false data about you. Further information can be found on the website at


Improve credit rating with proper credit requests

If you wish to compare offers from several banks before borrowing, you should make sure that the credit institutions mark the credit request as a request for "credit terms". Banks and creditors themselves submit a non-binding credit request to credit agencies. You can improve your credit rating if your credit requests indicate that you are investigating credit terms.


Improve credit rating when applying for credit

There is opportunity to improve a credit rating within the credit application. Banks also assess creditworthiness based on income, available assets and payment obligations. You should thus take all your earnings into consideration, when stating your income. An income tax refund can also increase the annual income. Interest earned on capital investments or care allowance that you receive for caring for relatives also count as income. You can also improve your credit rating by specifying a second borrower and their own income. Married couples then have a better credit rating if both partners earn an income.


Improve credit rating - plan long-term

Many of the credit criteria cannot be influenced in the short term before borrowing. Therefore, it makes sense to improve a credit rating in the long term. The credit rating will be lowered by the accumulation of credits, for example the number of current accounts and credit cards or negative entries for unpaid invoices. Also avoid credit agency entries about cancelled mobile phone contracts, irregular loan repayments, or dunning procedures. Long-term employment has a positive effect on a credit rating.