Borrow money with BKR
The Credit Registration Office (BKR) registers every loan and credit in excess of 500 euros in the Netherlands. There are therefore more than 9 million names in the BKR database.
If someone no longer pays on time and gets a backlog of at least two months, a negative listing can be entered in the database with the loan. The lender must first contact the borrower that there is a backlog. If there is still no payment, a negative BKR listing follows. One option that remains is borrowing money with BKR. These are mini loans that can be requested without much hassle. A high disadvantage of borrowing money with BKR is the high service costs.
Creditors can therefore see through the BKR that there is a problem with this borrower.
Do you have an income from work and no negative BKR? Then do not look at a mini loan but go for a revolving credit. This is cheaper and you can borrow continuously.
Code A and code H
After a delay in the payment of the credit, the lender can place an ‘A’. This ‘A’ stands for Arrears. If the payments are resumed and the backlog has been made up, an ‘H’ is placed for Recovery. The coding will remain in the system for 5 years after the loan has been paid off. Borrowing money with BKR can then become a major problem. Lenders may doubt whether the borrower is a reliable payer and refrain from new loans.
BKR special codes
In addition to the ‘A’ and ‘H’ codes, there are also special codes. These codes already indicate that something special is going on with a loan. A code 1 means that there is a backlog in payments and that a repayment or debt settlement has been arranged. With code 2, the bank made the credit immediately due and payable. With code 3, a minimum of 250 euros has been debited from the credit. If the borrower has become unreachable, a code 4 will appear. With code 5, a temporary preventive payment arrangement has been made. The particularity codes can be placed directly as a negative BKR listing without warning the borrower in advance. It goes without saying that if you get one of these special codes, borrowing money with BKR becomes very difficult.
Which credit is registered with the BKR?
Any credit that exceeds 500 euros is stated at the BKR. These are a personal loan, revolving credit, credit card debts, standing in red with the bank and debts with mail order companies and customer cards. The subscription with ‘free’ mobile has also recently been registered as a loan. Rent arrears, study debt and telephone bills are not (yet) included in the BKR. Mortgages are also not mentioned unless there is a delay of 120 days on a mortgage contract.