Borrowing money with a BKR registration: these are the advantages and disadvantages

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Borrowing money with a BKR registration,

Do you want to apply for a loan in the Netherlands? Then there is a good chance that this will be registered with the BKR. For many people, such a BKR registration sounds like something negative and suspicious. But is this really the case? Not necessarily. It can also work to your advantage.

This article was written by Independer.

Apply for a loan

If you apply for a loan of at least 250 euros for more than a month, the provider is obliged to pass this on to the BKR (Credit Registration Office). If you want to borrow money again at a later time, financial institutions can see how much money you already borrow on the basis of your BKR registration, and whether you pay off that loan properly. This way they can properly assess whether a new loan is justified.

In that sense, a BKR registration is not necessarily something annoying. If you invariably make your payments on time, lenders can easily check this through the registration. This way you take out a new loan without hassle or effort.

After all, the BKR registration shows that you do not pose a risk in the field of paying off. Of course, this also depends on how much money you borrow. There is a maximum on this. So you’re probably wondering: ‘How much can I borrow?’; there are all kinds of useful tools for calculating this.

Borrow money with a BKR code (Borrowing money with a BKR registration)

But this also works the other way around. If you have at least two months of payment arrears, this will be included in your BKR registration in the form of a code. It can be difficult to get a new loan if you have a coding. Such a code signals to lenders that you have not always repaid your loan on time.

Whether you can borrow money with a coding also depends on which coding you have. One weighs heavier than the other. An overview, in order of severity:

• H: This means that you were previously in debt, but have since recovered from it.
• A1: You are in arrears, but agreements have been made to pay it off.
• A2: The amount of your payment arrears is due and payable, so the provider can immediately request the money back or possibly seize it.
• A3: You have a payment arrears for which very specific agreements have been made with the creditor.
• A4: When you have been unreachable for the lender for a long time to solve the payment arrears.

Borrow money without BKR

Do you want to borrow money without BKR registration? Then there are some conditions that you must meet:

• You borrow less than 250 euros.
• The loan does not continue for more than one month.

But there are also special types of credit that have been postponed from BKR registration. For example, your student debt is not reported to the BKR, just like your mortgage of your house. You can also borrow money from family or friends without indicating this to the BKR.

Borrowing money with a BKR registration: these are the advantages and disadvantages

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