Follow-up financing rejected due to negative Schufa entry

To say that Sparkassen generally do not check or register with Schufa for financing is not correct. This was rather an individual case decision by the responsible advisor or the bank.

die Sparkasse prüft übrigens nicht bei der SCHUFA, zumindest unsere nicht.

In fact, not all Sparkassen are members of Schufa; but most of them are (at least in my area)

a deterioration in creditworthiness is not an important reason if every installment has been paid on time

Yes, if the bank has to worry that future installments may possibly no longer be paid.

However, this point is only theoretical in nature. I have not yet seen a termination of an ongoing contract where the installments were always paid on time.

Here, however, it is about the prolongation or follow-up financing. So no termination, since the financing is probably provided on demand and the property must be repaid at any time upon request.

Furthermore, it makes a difference whether a bank only makes an inquiry (information) or reports a loan in the portfolio.

is there a reason for the SCHUFA? Have you always serviced the loan?

Also, it makes a difference whether a bank only makes an inquiry (information) or reports a loan in its portfolio.

As I said, we have the loan running through the Sparkasse and even today there is nothing about our mortgage in the SCHUFA. We could easily finance another house with another bank ^^

Yes, if the bank has to worry that future installments might no longer be paid.

That is, to put it mildly, nonsense, or at least very hard to prove. It is absolutely impossible for a bank to terminate an ongoing loan for the important reason of "worsened creditworthiness" just because the borrower once did not pay a phone bill, while the mortgage was always paid on time. No court would allow that, since the bank cannot prove that the loan is really less likely to be serviced. Otherwise, every loan would already have been terminated at the first misstep, because a negative SCHUFA entry can also occur without fault and then you have to deal with the stress.
Of course, something completely different is a follow-up financing, because then everything is reassessed and the bank is also not obligated to offer follow-up financing (freedom of contract).

If such follow-up financing is not offered (even on worse terms) it must mean that something is really wrong. Unpaid phone bills or utility payments probably won’t be enough for that. There were likely already bigger problems during the previous contract period, making the effort no longer worthwhile.

To say that Sparkassen generally neither check nor record the SCHUFA in a financing is not correct. This was rather a special case decision by the attending advisor or the bank.

By the way, the Sparkasse does not check the SCHUFA, at least not ours.

You notice that yourself, don’t you?