Credit card, DebitCard and BKR assessment

Long gone are the days when only business people and high-income earners had credit cards. Credit cards are now a common means of payment for everyone, even if only to use when the regular bank account has a shortage or as a deposit for the rental of a car, for example.

Features of a credit card

Another name for a credit card is also called a credit card. The credit card provider gives you credit, because you can pay with the credit card and only then do you have to pay this amount to the credit card provider again. In fact, nowadays anyone with a fixed income can get a credit card, although the various organizations that issue credit cards each have their own requirements regarding the amount and source of income. Using a credit card does cost money in almost all cases, because an annual contribution must be paid to the credit card issuer.

A credit card is a credit

As mentioned, you can simply pay for purchased goods and services with the credit card and the seller will then immediately have the amount paid. However, how a particular credit card organization settles this with the credit card holder varies. The following methods are common:

  • Every month at the end of the month, the total amount spent with the credit card in that period is automatically debited from a bank account linked to the credit card. Normally no interest is charged over the period during which the money has been advanced by the credit card organization, as it were.
  • Some credit card organizations work with payments in installments. The installment amounts are based on the outstanding amount. In these situations, you normally have to pay interest on the outstanding amount.

BKR assessment when applying for a credit card

A credit card is in fact just a credit facility that you can use or not and for which the maximum outstanding amount of credit is agreed in advance. Because a credit card is normally issued by organizations affiliated with the BKR, an assessment is also carried out at the BKR to determine whether you will receive a credit card.

What is a BKR assessment?

The Credit Registration Office (BKR) works with the Central Credit Information System (CKI). This system records the credit and personal data of all Dutch people who take out a revolving credit, personal loan, mail order credit, credit on a current account, credit card or mobile phone subscription. Even if problems arise with the payment of these credits, they are reported to the BKR and registered. All credit providers affiliated with the BKR are obliged to report loans granted and problems with their payment to the BKR. In addition, when someone applies for credit, they are obliged to do a BKR assessment, which means that they request information about outstanding credits and the repayment of credits and decide on this basis whether they will grant the credit applicant this credit. This also applies to a credit card.

Options for a credit card with a negative BKR

If you have a BKR code, or a negative BKR, most credit card providers will not provide you with a credit card with associated credit facilities. At that time you can also opt for a DebitCard, with which you can pay for products or services and for deposits in the same way as with a credit card. The big difference, however, is that you have to fill the DebitCard yourself with a balance, as is the case with prepaid cards. So you do not receive credit from a lender, but you arrange your credit space on a payment card yourself with the financial resources you already have. Because you do not borrow money with the DebitCard, no BKR assessment is required. DebitCard providers include MasterCard and Visa.