BKR registration and still borrow: it is possible

Many people are very afraid of getting into the books of the Credit Registration Office (BKR). They think that this means they will never be able to take out a loan or mortgage again. But that’s not right. Only people who are known as defaulters have to deal with this. How can you borrow if you have a BKR registration? And what is the influence of a BKR registration on the application for a loan?

Who is registered with the BKR?

Hardly anyone knows, but everyone with a mobile phone subscription, credit card or credit is registered with the BKR. So that’s a lot of people. Besides, it doesn’t mean anything. Only if someone pays their subscription late or does not pay off the interest on the loan on time, someone will receive a code. Such a negative BKR coding can be a reason for banks or other parties not to grant a loan or mortgage. But we always look at why the code was created and when it was created.

When a negative BKR code?

People who have payment arrears of approximately 3 months are given the code A after their name. This letter stands for arrears. Before this happens, the person in question will first receive a written warning with a payment term of 2 weeks. If the outstanding amount is then paid, an H will be placed behind the customer’s name. In that case, the H stands for Recovery. However, it will take a while before someone no longer has any codes at all. Only after a period of 5 years does the A for arrears disappear completely from the BKR files. The Consumers’ Association advocates shortening this period to 2 years.

What should you do if you do not get a loan based on BKR registration?

Someone who has applied for a loan and does not receive it based on the BKR registration is entitled to a written statement of reasons. If the information is incorrect, the person in question can contact the creditors. The BKR itself cannot change the data in its database, this is only possible if a creditor indicates that matters are different. If such a creditor no longer works, the case can be submitted to the dispute committee of the Credit Registration Office.

Giving a loan to someone with a BKR registration is allowed

By law, banks and other lenders must inquire with the BKR about the details of the person who applies for a loan or credit from them. It is not stated anywhere what they do with that data. They are therefore not obliged to reject a loan if someone has a negative BKR code. Lenders are not allowed to lend money to someone who is not creditworthy (which can mean something completely different). But someone with a large salary who can meet his obligations every month may also have a BKR code or one that dates back 4 years.

Parties that ask for a lot of money for a loan from the BKR code

Because granting a loan is allowed, there are always parties that want to respond to this. The disadvantage, however, is that they often charge enormous interest rates, because they also run a much higher risk that the borrowed money will not be repaid. People with a negative BKR code would also be wise to check whether the party that wants to lend them money is reliable. The website of the Netherlands Authority for the Financial Markets (AFM) contains a list of lenders that are at least questionable.

Not everything is known to the BKR

Although people always hesitate with the BKR, there is also a lot that the Credit Registration Office in Tiel does not know. Rent arrears and student debts, for example, are not registered there. And a mortgage that is not paid is only identified there after 120 days.

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