Can I borrow money with a BKR registration?
Can you still borrow money with a BKR registration? And if so, where then? The good news is that the answer is “Yes.” Yes, you can simply borrow money with a BKR registration. We immediately mention that there is a difference between a positive and negative BKR registration. And that affects the types of loans you can choose from.
What is a BKR registration?
A BKR registration, what exactly does that mean and when will you receive such a BKR registration. When you take out a loan with a loan amount of more than 250 euros, a lender is required to report this to the Stichting Krediet Registration (BKR). They collect this data in the Central Credit Information System (CKI). The reason that every loan from € 250 is quoted in the Netherlands is to protect ourselves against taking out loans that we cannot pay off and which puts us in debt.
In addition to the fact that every lender in the Netherlands is required to pass on every loan that you take out to the BKR, they are also required to request your details before they grant you a new loan. In this way they can see how many loans you currently have and whether you manage to pay them off on time.
For example, you get a BKR registration in the following cases:
- You can be red on your loan.
- You have a credit card with payment in installments.
- You have a revolving credit or personal loan.
- You choose a deferred payment.
- You have a lease contract.
- You have an installment smartphone.
Difference between positive and negative BKR registration
As you can see there are quite a few cases in which you receive a BKR registration in your name. Now it is true that this is absolutely not bad or can have negative consequences for the application for a mortgage, for example. There is a difference between positive and negative BKR registration. We explain the difference to you.
Positive BKR registration
BKR registration is not a problem, these are the majority of Dutch people. Around 8.5 million people are registered with the BKR Foundation with one or more loans. And as long as this is a positive registration, there is nothing wrong with that. Through this registration, lenders can see that you are able to repay the loan that you are taking out on time. With this knowledge they will offer you a new loan with more confidence.
Negative BKR registration
When is it a problem to have a BKR registration, where does that negative association come from? This is due to the fact that a positive registration can be converted into a negative registration. This happens when you do not comply with payment agreements and have payment arrears. Fortunately you don’t just have a negative registration. You will first be warned by the lender that payment arrears will build up. You will also receive reminders and an official warning. Are you ignoring all this? Then your positive registration will be converted into a negative registration.
And that naturally has consequences for a possible new loan that you want to apply for. Since lenders are required to request your information before they offer you a loan, they will also see that you do not honor your commitments and do not pay on time. To protect yourself and your financial situation, they will most likely tell you that you cannot take out a new loan at this time.
Borrow money with a positive BKR registration
With a positive BKR registration you are not limited in the number of loans you can choose from. The most chosen loans are the personal loan and the revolving credit.
A revolving credit can simply be requested with a BKR registration, as long as it is not negative. It is a form of credit that offers you extra financial room for an indefinite period of time. You take out a revolving credit at a set limit, or the maximum amount that you can borrow. When and how large the amount you want to withdraw is entirely up to you. Does it appear that you still need the money that you have repaid? Then you can just record it again. If you opt for a revolving credit, you are dealing with variable interest. The interest rate may fall and rise during the repayment period. The nice thing about this form of credit is that you only pay interest on that part of the loan that you actually took out. Do you want to pay extra? Then that is possible, without extra costs.
Maybe you do not need all that freedom in withdrawing and paying off and you prefer to have the entire loan amount in one go. This is also possible in the form of a personal loan. This loan offers the most stable form of borrowing. You take out the personal loan for a fixed term, a fixed interest rate and a fixed monthly term. Because of this you know exactly before you take out the loan how much you will lose per month and when you have fully repaid the loan. Do you choose to use the money that you borrow for a renovation or improvement of your owner-occupied home? Then it is deductible for income tax.
Borrow money with a negative BKR registration
Do you have a negative BKR registration as a result of a long-term payment delay? Then it becomes more difficult to take out a loan or credit. Fewer options remain open to choose from. Yet there is a loan, the mini loan, that you can now also apply for, because it will not be checked whether you have a BKR registration at all.
What exactly is a mini loan? It is a loan up to 1500 euros that you take out in order to be able to bridge a short period of time. The fact is that you often have to pay off a mini-loan within 62 days. Are you requesting a mini-loan and is this request approved? Then you will receive the amount in your account the same day.
There are three conditions that you will have to meet or to be able to request a mini loan. For example, you must be 21 years of age or older, live in the Netherlands and have no benefits. As you can see, there is no request for a payslip, a permanent contract or a BKR assessment. Mini loan providers are not affiliated with the BKR. This is the reason that they cannot and cannot request data on it. In addition, they are therefore not obliged to pass on your mini-loan to the BKR.
Before you take out a mini loan, you will first have to compare different providers. Request quotes and compare them with each other. This way you will see that the conditions can indeed differ from each other. Continue searching until you have found the provider whose conditions you find most suitable for your situation. We want to warn you that there are also parties active in the Netherlands that cannot be trusted. It seems as if they offer mini-loans at interesting interest rates. But once you have taken out the loan, you will discover that there was still something in the fine print that makes the loan not so cheap at all. Our advice is to take out your mini loan with Ferratum or Saldodipje. We know that they can be trusted because they have been active for a long time and we do not hear any negative messages.
How do I get rid of my BKR registration?
Once you have taken out a loan or credit, the details are stated in the Central Credit Information System. If you do not agree with this statement, we can well imagine that you want to have this statement removed. Unfortunately, this is not easy. The BKR Foundation is not authorized to change or delete data that a lender provided at the time. We explain to you which steps you must take to have your data changed / deleted.
First of all it is important that you have requested and viewed your data yourself and that you are sure that they are incorrect. The first step you take in the event of an incorrect statement is to contact the lender with whom you took out the loan. If the information is indeed incorrect or unjustified, the lender will adjust this at Stichting BKR.
Do you find it hard to get along with the lender and do you remain convinced of your own right? Then you can appeal to the Disputes Committee. This Disputes Committee consists of independent judges from the Amsterdam court. They will look at the case and then make a binding decision. That means that everyone (lender, BKR and you) will have to stick to it.
Do you not have the time and energy to go through this entire process with the lender or a disputes committee? Then you can also choose to hire an independent company that specializes in the removal of BKR registration. Remember that such a company can only achieve this if it appears that a registration is actually unjustified. If you already know that the registration is actually justified, it makes no sense to go into the entire process.
Finding an independent and reliable company that can have your BKR registration removed is not easy. There are plenty who present themselves as a specialized company, but in reality they are not at all. They ask you to pay money in advance and then you hear nothing from them. A company that is specialized and trustworthy is Dynamiet Nederland.
Avoid a negative BKR registration
‘Prevention is better than cure’. Preventing a negative BKR registration is easier than trying to get rid of it afterwards. In addition to having less choice of loans, you may also experience discomfort when you want to apply for a mortgage. How do you prevent a negative BKR registration? This is not very complicated, because you do not have a negative registration just like that.
If you are unable to pay on time, contact the bank or lender immediately. When you present your situation fairly to them, you can look together for a way in which you will succeed in fulfilling the payment agreements. Do you decide to pay late without contacting us? Then you will receive a reminder and reminders from the lender. If you also ignore this, an official pre-notification will follow. This gives you the last chance to pay and prevent a negative BKR registration. If this pre-announcement is also ignored, the lender will be obliged to report this to Stichting BKR, who will then place an A of notification of arrears behind your name. This means that the negative BKR registration is a fact.
Do you find it difficult to handle money, or are you currently in debt? Don’t be ashamed of this, because you are not the only one. On the Nibud website you can read a lot of important information about the topics money and debt.