A BKR A4 code is one of several codes that may appear on your credit report. It is a heavy code, meaning it is often difficult to remove this BKR registration.
The A4 code is not only heavy, but also a bit different from the other BKR codes. Why that is, we will explain that to you in this article. We also show that a BKR registration A4 is not immediately a reason to despair.
In this article:
A BKR A4 code shows that a person has fallen behind on a loan or other credit. Thereby, the "4" indicates that the lender has been unable to contact the bearer of the registration.
Claims based on the debt could not be collected as a result. For this reason, a BKR A4 code is considered severe: it sends a very negative signal to any future lenders.
Want to know if we can help you get rid of your coding? Then request a no-obligation intake interview.
Requesting an intake interview
First, the BKR registration itself. When you take out a loan or debt, the agency providing you with that money is required to report it to the BKR. This abbreviation stands for Bureau Krediet Registratie: an organization that keeps a record of all debts, loans and credits that Dutch people take out.
Other lenders have access to this overview. For example, are you applying for a (new) loan or mortgage at a bank? Then that bank will first perform a BKR check. It will then check whether you already have loans registered with the BKR and whether they have any codes, such as an A4 code.
More on those codes later. For now, it's important to know that a BKR registration - and any codes on it - gives a lender insight into your creditworthiness. In other words, whether it is wise to grant you a new loan or mortgage.
The idea behind this system is to protect consumers from taking on irresponsible loans and debt. However, because a registration remains visible for five years after the loan is repaid, in practice it stands in the way of many people for a disproportionately long time.
Especially when that registration also has a coding, such as that BKR A4 coding.
In fact, a BKR registration in itself is not such a problem. As long as you have always paid your repayments on time, we speak of a positive BKR registration. At most, this will affect the amount of mortgage you can get when you are still making repayments. After all, this affects your disposable income.
However, when you fall behind on a loan payment , its registration is converted into a negative BKR registration.
This is identified on the BKR statement by a code "A," or Arrears Notification. When you catch up on the arrears, this is changed to an "H," or a Recovery Notification.
The problem is that this code also remains visible for a long time: even five years after the entire loan has been repaid. So when you try to apply for a new loan or mortgage, the bank (or other lender) will see that you have had trouble repaying in the past. This can make it difficult to get a mortgage or loan.
How difficult, that depends on the severity of the coding. Behind the letter, you will also see a number. This number gives more information about the nature of the arrears incurred, or what has been done with the arrears. An overview of the meanings can be found on our BKR codings page.
The "4" in a BKR A4 code is called a particularity code. This is a number that provides additional information about the nature of the registration. For banks and other lenders, it is an important indication of the severity of payment problems.
Thus, the particularity coding plays an important role in whether you can still get a loan. How difficult it is to get rid of the registration also depends largely on the particularity coding.
A particularity code 4 indicates that you were in arrears on the loan in question, and you were unreachable by the lender. Contact information and whereabouts were unknown, so receivables could not be collected.
You will understand that this is considered a particularly serious registration, which will be charged heavily to you by (future) lender. It is therefore virtually impossible to get a mortgage or loan with a BKR A4 code.
Getting a mortgage with a BKR registration in your name is often extremely difficult. That is, when it is a negative registration (with arrears or recovery notices, that is).
Banks and other lenders will be reluctant to grant you a (new) loan. After all, they can see in the BKR registry that you have been dealing with late payments.
Getting rid of an active A-Code (the payment arrears are still outstanding) is only possible by paying off the arrears. The A coding is then converted, as described above, to an "H" of recovery notification.
Therefore, the first step in removing a BKR A4 code is to pay off the arrears. But then you are often not there yet.
In addition to catching up on late payments, you can also choose to pay off the entire loan.
When you fully repay the loan to which a BKR registration relates, an actual end date is placed behind this registration. Thus, this indicates that the loan or debt has been repaid in full.
Whatever you choose: the registration remains visible to future lenders. Namely, for five years after the loan has been repaid in full and an actual end date has appeared on the registration.
This means that past payment arrears can still get in your way of getting a mortgage or other loan all these years later. In many cases a disproportionate course of action and the reason for our establishment.
What are your options?
As mentioned, the first step is always to make sure you are debt-free so that the A-Code can be converted into a Recovery Notice. After all, no bank will lend you money while you are still in current arrears.
However, due to the severity of an A4 code - and the fact that it remains visible for a long time even after repayment - it will then still be difficult to get a mortgage.
After all, the 4-code indicates that you were not reachable or locatable at the time of the arrears and the receivables could not be collected. For (new) lenders, this indicates a high risk that they do not wish to continue taking.
Five years after you repay the loan, the registration automatically disappears from BKR's register, but you may not have time to wait for that. Negotiating with the lender who placed the registration is then the only option.
This starts with a request for removal from the relevant provider. In it, you state why you think the record should be removed and how it interferes with your daily life.
Your chances of success are significantly increased by hiring a specialist lawyer from Dynamite Netherlands. Every day, our lawyers are committed to removing BKR registrations that are holding people like you back.
Want to know what we can do for you? Then schedule your personal, free, no-obligation consultation today. (That consultation is all about you and your situation: together, we'll map out your options).
Requesting an intake interviewWe conclude this article with two questions we regularly receive when it comes to BKR registrations and A4 codes.
