Credit and BKR review and coding

When you make a credit application with a registered lender or banking institution, this person will examine your creditworthiness by doing a BKR check. This gives the lender insight into current loans and your behavior regarding the fulfillment of your payment obligations regarding loans and credits. In addition, the lender will also determine your creditworthiness based on data such as your income, financial obligations and personal circumstances.

It is useful to apply for a loan from an accredited lender, even though it always carries out the so-called BKR check. People with certain negative BKR codes can also get a loan, provided they meet a number of other conditions. The safest and cheapest way to borrow is with an accredited registered lender or bank. We provide interesting information about borrowing with a BKR test and borrowing without a BKR test. The BKR, the Credit Registration Office, can provide information about the borrowing behavior and repayment behavior of people in the Netherlands. The personal and credit details of people who enter into credit on current account, revolving credit, mail order credit, credit card, personal loan or GSM subscription are registered by the BKR in the CKI, the Central Credit Information System. Registered banks and lenders and GSM providers request information from the BKR and this will determine your creditworthiness before they grant you a loan. Just to be honest: accredited lenders, lenders and banks do not lend you money without taking a BKR test. Of course there are possibilities to get money without your lender doing a check at the BKR. Then consider the following options.

Options for borrowing money without review at the BKR include:

Options for borrowing money without review at the BKR include:

  • There are loan lenders who want to lend you money without having to check with the BKR and then charge you interest that is two or even three times as high as normal. Perhaps the reason that you cannot go to a regular lender is that you have already had payment problems in the past. Please note that these practices with very high interest rates can cause you problems.
  • Online market places on the internet where individuals can borrow money from other individuals.
  • Borrowing collateral from pawnshops and the like. When you provide collateral at pawnshops you can borrow a certain amount. Please note that if you want the collateral to be returned, you must take out a loan with a repurchase guarantee. You can also borrow with securities or life insurance as collateral.
  • Borrow from family, employer or acquaintances; they will not perform a review at the BKR. Please note that if you are unable to meet your payment obligations, this may seriously disrupt the mutual relationship.

The Credit Registration Office (BKR), which is based in Tiel, can provide information about the borrowing behavior and repayment behavior of people in the Netherlands. The personal and credit details of people who enter into a mail order credit, credit on payment account, revolving credit, credit card, personal loan or GSM subscription are registered by the BKR in the CKI, the Central Credit Information System. Registered banks and lenders and GSM providers will always behave in accordance with the rules on informing and with the BKR, which means that they are obliged to provide credit between € 500 and € 125,000 with a minimum duration of three months, provide personal and credit data to the BKR. When payment arrears with regard to the repayment of a loan occur, when these arrears are solved, when loans are repaid in full and in the event of irregularities, these lenders also inform the BKR in accordance with the applicable guidelines.

When a registered lender or bank in the Netherlands receives a credit application, it will always consult the BKR register; this is called the BKR test. This assessment has a dual function. Firstly, this protects the lender so that he does not provide credit or lends money to a person who cannot meet the payment obligations. If there were no central registration, someone would be able to take out all kinds of loans with different banks and other lenders. Secondly, this also protects the borrower against himself. On the basis of the assessment based on the data registered with the BKR, it is determined whether someone can receive a credit and, if so, how high the amount can be responsibly borrowed.

Negative BKR codes

Negative BKR codes

There are some encodings at the BKR that are known as negative. A backlog notification concerns payment arrears and is visible as an A code, which remains in the register at the BKR for five years after the loan in question has been repaid. When the backlog is repaired, an H code is noted. In addition, there are four more specificity codes that can be added to the A code and give more information to a potential lender about the nature of the A code. In practice, a credit can also be obtained in the case of certain A codes, provided that the other conditions for obtaining a credit are met.

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