A-code BKR: meaning, consequences and possibilities

An A rating with the BKR can have a big impact on your financial future. Such a registration means that you have been in arrears on a loan or credit for two months or more. In this article, we'll explain exactly what an a coding bkr means, the different types and how it can affect your mortgage options and other financial plans.

We understand that a BKR code can limit your life considerably. Maybe you want to buy a house, finance a car or buy a new phone with a subscription, but keep getting rejected. This is not only frustrating, but can also feel like you're stuck in your life. At Dynamite Netherlands, we'd love to help you understand your options and possible solutions for your a coding bkr.

How does removing a BKR code work?

The different types of A codes at the BKR

There are five different types of A codes (A1 through A5), each with its own meaning and impact. It's important to know which coding you have, because it affects your options and the seriousness with which lenders look at it.

A1 coding: payment arrangement

An A1 code means that a repayment or payment arrangement was made with the lender after the arrears occurred. Of all the codes bkr in the A category, this one is often considered the least problematic. Some mortgage lenders are even willing to give people with one A1 code a mortgage anyway under specific conditions.

A2 coding: due claim

With an A2 coding, the entire debt is due from the lender. This means that the lender has lost confidence in you as a customer and is demanding the full outstanding amount at once. This coding is considered a serious problem by almost all mainstream banks and almost always leads to rejection of loan applications.

A3 coding: write-off or remission

An A3 code indicates that the lender has written off an amount of €250 or more. This means that the lender has decided that (part of) the debt is probably no longer collectible. This coding is seen by mortgage lenders as a very negative signal because it shows that you have not been able to repay the debt in full.
Read more about what debts the BKR registers here.

A4 coding: inaccessibility

You get an A4 code when you have been unreachable by the lender. This indicates that you were actively trying to evade payment obligations and is seen by all mortgage lenders as an absolute red flag leading to rejection.

A5 coding: preventive payment scheme

An A5 coding is specific to mortgages and indicates a preventive payment arrangement that has been made to avoid problems. This coding is temporary and disappears once the payment arrangement is successfully completed. Of all the a coding bkr variants, this one is often seen as the least problematic, because it actually shows responsible action where you have proactively entered into discussions in case of temporary financial problems.

The impact of an A code on your financial options

A coding bkr has far-reaching implications for your financial options. It not only limits your access to new credit, but can also impact everyday items such as taking out a phone plan with an appliance.

Mortgage with an A code

Most mainstream banks and mortgage lenders will reject a mortgage application if you have an active A-coding, especially if it is an A2, A3 or A4 coding. With an A1 coding with H-repair coding, there are sometimes still options, but you must meet strict conditions.

There are specialized mortgage brokers who work with alternative lenders who are willing to finance under certain conditions. However, these mortgages usually have higher interest rates, ranging from one-half to one-and-a-half percent above market rates, and they often require a higher deductible.

Other financial products

Not only mortgage applications are affected by an A code. You may also encounter problems with these financial products:

• Private lease and car loans almost always rejected
• Phone subscriptions with handset often rejected
• Personal loans and revolving loans are very difficult to obtain
• Credit cards are usually declined

Even for things like taking out a new energy contract or opening a new bank account, you may face difficulties with an active A code. In fact, some companies operate their own "blacklists" or use commercial credit reporting services that go beyond just BKR registration.

If you have an A rating and still have a mortgage want to apply for a mortgage, it is wise to first investigate whether removal of the coding is possible. At Dynamite Netherlands, we are happy to help you with a personal analysis of your situation.