Credit Score
Also known as: Bonität, Schufa score (DE), KSV rating (AT), creditworthiness
Your credit score is your financial reputation — it tells banks, landlords, and phone providers how reliably you pay your bills. The better your score, the easier you get loans, apartments, and contracts.
How do you improve your credit score?
Always pay bills on time — this is the most important factor. Avoid unnecessary credit inquiries. Close old, unused accounts. Avoid overdraft. And: regularly request a free self-disclosure (once per year) and check for errors. Incorrect entries can be removed.
How does it work?
In Germany, Schufa stores your payment history and calculates a score (0–100%, 95%+ is considered very good). In Austria, KSV1870 does this. Both collect data about your loans, accounts, phone contracts, and payment defaults. Positive behavior (paying on time) improves your score, negative behavior (reminders, collections) worsens it.
BudgetHeld says
A clean budget protects your credit score: when you know where your money goes, you pay bills on time, avoid overdraft, and live within your means. BudgetHeld makes exactly that visible.
Related tools
Budget Tool →Related Terms
Written by David El Dib — Financial expert & founder of MoneyTalk