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BKR Registration Explained. The Basic Guide from Dynamite Netherlands

BKR registration: it is a subject that concerns many Dutch people. Often it feels like an impenetrable jungle to get the right information. Annoying, especially when a BKR registration gets in the way of a mortgage or other (business) loan.

What is a BKR registration? When will you be registered and how can you check if you already have a registration to your name? What consequences does it have for you?

And how can you get rid of a BKR registration? We've been showing for years that it can be done. (Little time to read, but just quick to get rid of your registration? Then click here for a free consultation).

How does removing a BKR registration work?

Wondering what we can do for you?

Requesting an intake interview

Contents of this BKR registration basic guide:

What is a BKR registration?
When do you get a BKR registration?
The consequences of a BKR registration
- Positive
- Negative
- Mortgages
Accessing my BKR registration(s)
Removing a BKR registration according to Dynamite Netherlands' approach

Dynamite Netherlands guide regarding BKR registrations

Dynamite Netherlands has been the champion of a clearer and fairer policy around BKR registrations since 2012. In this guide, we tell you everything you need to know so you know exactly where you stand and what your rights and options are.

Read more about the impact we already made for people like yourself.

Or watch the video in which Mr. Frank Visser (known as the driving judge) talks about how Dynamite Netherlands is working for more clarity around BKR registration.

Requesting an intake interview

What is a BKR code?

A BKR code is a loan or credit registered with the Bureau of Credit Registration. These registrations together provide a record of a person's creditworthiness, which can be viewed by lenders.

It also shows whether someone is in arrears on the loan. This could be an outstanding arrearage, or a past arrearage that has since been repaid.

The BKR keeps such a record of loans and credits taken out on all Dutch people. So everyone gets a BKR code when he or she takes out a loan.

First, this is to give lenders an overview of your creditworthiness. This helps them assess whether it is responsible to grant you a (new) loan or credit. After all, they can see whether you have any outstanding payment obligations or have (had) arrears.

In addition, it is designed to protect individuals from financial hardship by preventing them from taking out irresponsible new loans.

In practice, however, a BKR registration often stands in the way of individuals being able to shape his or her life for a disproportionately long time. This is because a registration remains for five years, even after the loan or credit has long since been repaid.

Dynamite Netherlands' mission: more clarity for consumers

Dynamite Netherlands was created in early 2012 out of a desire to help people move forward when a BKR registration gets in the way of their life goals. From the beginning, we have worked for fairer policies and more clarity for consumers

Precisely because one often faces the consequences of a BKR registration in uncertain times.

From the beginning we have been fighting for this - through the courts where necessary - with the BKR and lenders. An overview of the impact we have made can be found here.

Before we delve further into the consequence and removal of BKR registrations, it is important to understand the difference between a positive and a negative BKR registration.

Positive BKR registration

A positive BKR registration is a loan or credit registered with the BKR on which you are not in arrears.

Such a registration is nothing to worry about: most Dutch people have one or more positive BKR registrations. This is because every loan or credit over €250 is registered. What many people do not realize is that this also applies, for example, to a mobile subscription with a "free" phone of at least €250.

Banks and lenders are required to report new credit above 250 euros to the BKR. Therefore, if you take out such a credit, you will automatically get a registration with the BKR. A positive registration means that there are no details to mention, such as the presence of arrears.

So for lenders, it is just a sign that you are reliable to lend to.

Impact of a positive registration on your mortgage

Have you not yet repaid the loan in full? Then a positive BKR registration does affect the amount of mortgage you can get. After all, because you must make monthly repayments, an outstanding loan affects your monthly disposable income and thus your borrowing capacity.

A positive BKR code:

Show that you have always paid repayments neatly on time
Indicates that you are registered as a "good payer" with the BKR
Affects the amount of a (new) mortgage you can get
Disappears automatically five years after loan repayment and cannot be actively removed

Thus, a positive BKR coding only affects you when you have not yet repaid the loan (in full). This is in line with the purpose of such registrations, to keep consumers from taking out irresponsible (additional) loans.

Negative BKR registration

A negative BKR registration points to a registered loan or credit on which you are (or have been) in arrears. Unlike positive registrations, they can have far-reaching consequences for consumers for a long time to come.

A-coding

Negative BKR registrations can be recognized by the so-called A code attached to the registration. This is also referred to as a arrears report and it indicates that a repayment arrears has arisen on the loan in question.

H-coding

When the backlog is cleared again, the A is converted to an H code. This is a recovery notification, showing that there was a backlog but it has been recovered.

In addition, there are several other numbers you may encounter in the negative BKR coding. The main ones are:

Code 1 indicates that a payment or repayment arrangement has been made to clear the arrears.
A 2 code indicates that the lender has demanded that the entire loan be repaid in one lump sum. This often involves the use of a collection agency.
A 3 coding indicates that there has been a write-off or waiver on the outstanding debt of at least €250.
Code 4 indicates that it was not possible to reach the debtor for an extended period of time, making collection of repayments impossible.
For a small mortgage arrears with a preventive payment plan (i.e., to avoid serious arrears), code 5 is placed.

The codes vary in severity and in how difficult they make it for you to find a new mortgage or loan. Want quick insight into your situation and options? Then schedule your free, no-obligation consultation with one of our specialists today.

Note: For this, it is important that you know what (negative) BKR registrations you are dealing with. Not sure (yet)? Later in this guide we discuss how you can retrieve these registrations.

In summary; a negative BKR

Is identified by an A code (backlog notification) on registration
Indicates via numerical coding how serious the situation is
Remains visible even after catching up with an H code (recovery notification)

The annoying thing is that even a negative BKR remains for five years. So even after the entire loan has been paid off, it will still be seen for years that you have fallen behind on payments in the past.

Fortunately, in many cases there is the possibility of removing a negative BKR registration. You can read about that in the last chapter of this basic guide.

First, we will elaborate on when you get a registration and what exactly the consequences are.

When do you get a BKR registration?

You now have a better idea of exactly what a BKR registration is. But when exactly will you be registered with the BKR? Below we list the main things that can lead to a registration.

You get a BKR registration when you:

Have a revolving credit or loan of more than €250
Have more than €250 in your bank account in the red (even if you have not actually been in the red)
Driving a private lease car(learn more)
Uses payment in arrears when buying things
Possess a credit card with installment payments
Have chosen a phone plan with free handset
Have missed more than three payment installments on your mortgage

This involves amounts above €250, so in principle you do not have to fear a BKR registration because you once bought a pair of pants of €50 with payment in arrears.

Want to make sure you are free of BKR registrations? You can easily request a summary of your registrations yourself. Later in this guide, we'll show you how.

It is also good to know, for example, that a student debt or mortgage is not registered with BKR. Nevertheless, such a debt does have consequences for a (new) mortgage or loan, because it affects how much you have available each month for repayment.

As mentioned above, a mortgage does result in a (negative) BKR registration when you fail to pay more than three payment terms (sufficiently).

Want to know more? Read all the details in our article when do you get a registration?

Consequences of such a registration

The consequences of a BKR registration depend entirely on the type of registration. A registration can affect the maximum mortgage or loan you can get, or can even cause a lender to not want to lend you money at all.

Another important factor is that a BKR registration remains for five years, even after the loan or credit has been repaid.

The consequences of positive registration

The consequences of a positive BKR registration are usually limited. After all, it is a signal to lenders that you have always paid your repayments neatly on time.

However, it will - if the loan or credit is not yet fully repaid - affect how much you can borrow.

After all, you already have a monthly repayment obligation. That means you will have less money left over each month to repay the new loan or mortgage, which will lower the calculation of the maximum amount you can borrow.

Negative registration due to late payments

A negative BKR registration soon has more serious consequences. After all, such a negative registration - as you could read earlier in this guide - is a sign that you have fallen behind on payments(s) in the past.

Lenders will therefore be reluctant to grant a new loan or mortgage.

Obviously, an outstanding negative registration (the payment arrears have not yet been cleared) makes a new loan impossible anyway. The annoying thing is, however, that a negative registration can keep you in the way for years even after the debt is paid off.

As we have seen, a registration remains visible for five years after the loan in question is paid off. In practice, this means that you may feel the ill effects of a past debt for years to come, even if you are now perfectly financially sound.

In the latter case, removing the BKR registration will provide relief so that you do not suffer from five more years of past arrears.

Applying for mortgages with a BKR:

BKR registrations and mortgages are inextricably linked. So much so, that we would like to briefly highlight this topic separately.

Many people first encounter the concept of BKR registration during a mortgage counseling session.

The mortgage broker asks if there are any BKR registrations and recommends checking. Perhaps you found yourself on this page after such a conversation. Below is how to retrieve your the registration.

Often after such a conversation, people find out for the first time that they do indeed have a BKR registration. For example, they are often unaware that a phone plan with a free device is also already registered with BKR.

The effect of a positive registration on a mortgage

With a positive BKR registration, there is often not much to worry about for a mortgage. At most, this can affect the amount of mortgage you can get. It may be advisable, for example, to (temporarily) turn off the option of being in the red on your bank account. Your mortgage advisor can advise you on this.

More annoying is when a negative BKR registration suddenly surfaces. Especially when this is an old payment arrears, it can come as a surprise. This is because many people are unaware that the registration remains visible for up to five years after repayment.

Removing a negative registration

Are you in danger of getting into trouble when applying for your mortgage because of such a negative registration? Not to worry, we can help you remove it. By initiating an emergency procedure, we can often even prevent a requested mortgage from not going through. So don't waste any time and schedule your intake today.

Learn more about taking out a mortgage with BKR registration.

Accessing my BKR registration(s)

Perhaps you were told in a mortgage counseling session that it would be wise to check if you have a BKR registration. Or you are just curious if you are dealing with such a registration.

Whatever your reason: fortunately, you can very easily request an overview of your BKR registrations.

Viewing your BKR registration does not work - as often thought - via DigiD. Instead, BKR uses iDIN. This is an identification method that runs through your bank.

You can request your BKR registration summary from this page.

Removing a BKR registration according to Dynamite Netherlands' approach

By now you know all you need to know about:

The BKR registration
Different encodings
How registrations come about
What impact they can have on you
Where to request BKR registrations.

Active BKR registration removal

It remains for us to conclude this BKR registration basics guide with what we at Dynamite Netherlands deal with every day. Namely, the removal of negative BKR registrations.

This specifically involves negative BKR registrations, because - as you have read - they can have a disproportionate impact on you as a consumer.

Active BKR registration removal is relevant when:

You are dealing with a negative BKR registration
Payment arrears have been cleared
This has a demonstrable, disproportionate impact on your life

A request for removal has no chance of success if there is still a backlog, or if it is an (outstanding) positive registration.

For example, with a positive registration that affects amount of your mortgage, you can consider repaying the outstanding amount in full.

Roadmap for removal of BKR codes

Do you want to remove or challenge a negative BKR registration? This is the roadmap Dynamite Netherlands goes through for this.

1. Intake

We always start with an intake (free and without obligation). One of our specialists will assess your situation and discuss your opportunities and possibilities.

It benefits the speed of the process if you already have an overview of your BKR registrations yourself. How to request this, you found out in the previous chapter of this basic guide.

2. Assessment of success rate

After meeting with the specialist, our underwriters assess whether your request is likely to succeed.

We always communicate this opportunity honestly to you, so as not to create false expectations and not to cost you unnecessarily.

Do we expect to successfully remove the BKR registration? Then we will send you an offer. Please note: this is not a guarantee of success.

3. Lawyer goes to work for you

After you accept the offer, you will be assigned a regular BKR registration lawyer to work for you.

This means drafting an objection or complaint regarding the BKR registration on your behalf towards the lender, requesting that the registration be removed. The lawyer will substantiate why the registration is unjustified and disproportionately interfering with your life.

Is there urgency, such as because of a mortgage application that is in jeopardy? Then the lawyer will make every effort to get the request processed quickly enough.

Of course, we will actively keep you informed about the progress of the process.

4. Final Report

You will receive a final report from us with the result achieved. In many cases, after this you will be able to take out a loan or mortgage again.

After reading this guide, do you still have questions, or would you like to receive tailored advice directly with your BKR registration or its removal? Then don't hesitate to contact us. We are happy to help you, as we have helped thousands of people like you.

Request a consultation with a specialist