Are you struggling with a negative BKR record and urgently need a loan? You're not alone. Thousands of Dutch people face the same challenge. With a negative BKR code, doors to financial institutions often seem closed. Yet there are options to borrow money with negative BKR or to have your registration removed so that you become creditworthy again. In this article you will discover what options you have and how Dynamite Netherlands can help you do so.
Can I borrow money with a BKR registration?
What does a negative BKR registration mean for your borrowing options?
A negative BKR registration occurs when you are at least two months in arrears with financial obligations. This is registered with the Bureau of Credit Registration (BKR) and remains visible for five years by default, even if you have since repaid the debt in full.
For you as a consumer, a negative BKR code has far-reaching consequences. Regular banks and lenders are required by the Financial Supervision Act to perform a BKR test for loans over 250 euros with a term longer than one month. With a negative registration such as an A2, A3 or A4 code, they almost automatically refuse your application.
Even with a recovery code (code H), it remains difficult to get a loan. Lenders often see this as a signal that you've had trouble repaying in the past. This does not mean you have no options, but it does require a different approach than the standard loan application.
"Many people think a negative BKR registration means they are financially strapped. But that doesn't have to be the case. With the right legal approach, an unwarranted or disproportionate registration can often be removed, giving you back access to normal loan terms."
Deepak - Legal Specialist
What options do you have for borrowing money with negative BKR?
If you want to borrow money with a negative BKR registration, you have several options. We discuss the most common options below, including their pros and cons.
1. Social credit banks and municipal loans
Social credit banks such as the Kredietbank Nederland and Volkskredietbank offer loans to people with a negative BKR registration. These institutions have different underwriting policies than commercial banks and look more at your current financial situation than your past.
Requirements for a loan from a social credit bank are usually:
- You have a stable income (usually up to 130% of the minimum wage)
- You have a clear spending goal
- Your current financial situation is stable enough to repay
The advantage is that interest rates are usually lower than with commercial parties, often around 12% annually. A disadvantage is that the application process can take longer and there are often waiting lists.
2. Mini-loans and flash loans
For small amounts of up to 1,000 euros, there are providers of mini loans that do not perform a BKR test. However, these loans have significant drawbacks:
- Costs are extremely high, with sometimes effective annual interest rates as high as 900%
- The term is very short, often only 30 days
- When repayment is late, costs can add up quickly
- You risk falling into a debt spiral
We recommend this option only in absolute emergency situations and only if you are 100% sure you can repay within the time limit. It is important to note that many mini loan providers operate in gray areas of the law.
3. Borrowing from family or friends
An informal loan from family or friends can be an alternative if you need money with a negative BKR code. This has the advantage that there is no credit check and the terms are often more lenient.
With this option, always make clear agreements about repayment, possible interest and what happens in case of payment problems. It is wise to put these agreements in writing to avoid later misunderstandings and relational problems.
4. Mortgage or loan with a guarantor
Some lenders will accept an application for a mortgage or personal loan with a negative BKR record if you have a reliable guarantor. This person will guarantee repayment if you default.
Of course, this requires someone close to you who is not only willing to take this risk, but also has a good credit rating himself. Not all lenders offer this option.
The legal way: getting BKR registration removed
The most permanent solution to being able to borrow money again with a negative BKR is to have your registration removed. This is possible if your registration is unjustified or does not meet the proportionality principle from the Supreme Court's Santander ruling.
According to this ruling, BKR registrations must be proportionate. This means that there must be a reasonable relationship between:
- The severity and duration of your arrears
- The size of the debt
- The circumstances that led to the backlog
- The impact registration has on your life
For example, if you fell behind on payments due to temporary circumstances such as illness or job loss, have since paid everything off nicely, but now cannot get a mortgage for your family, a judge may rule that the registration is disproportionate.
Dynamite Netherlands specializes in legally challenging BKR registrations. We have already helped thousands of people get their registration removed, giving them access to normal loan terms again.
This process broadly follows these steps:
- Analysis of your specific situation and BKR registration
- Assessment of whether there are legal grounds for removal
- Negotiation with the lender who placed the registration
- Initiate legal proceedings if necessary
The advantage of this approach is that not only can you borrow now, but you will be fully creditworthy again in the future with normal terms and interest rates.
Mr. Frank Visser on deleting BKR registrations
Recent developments around BKR registrations and borrowing
The regulations surrounding BKR registrations are in flux. This offers new prospects for people who want to borrow money with a negative registration.
An important development is that 41 municipalities have now switched to a shorter registration period of six months for debt relief projects, instead of the standard five years. This gives people who have solved their problems through debt relief a new chance sooner.
There are also proposed legislative changes that may reduce the retention period for BKR registrations from five to three years. These changes are not yet final, but show a growing understanding of the disproportionate impact that lengthy registrations can have.
Another relevant development is the Supreme Court ruling that BKR registrations fall under legitimate interest and not legal duty. This strengthens your right to object to a registration under the AVG if you can show that your interests outweigh those of the lender.
These developments mean that the legal route to getting your BKR registration removed is becoming more promising, especially if you can prove that your financial situation is now stable and you are disproportionately limiting the registration.
What should you absolutely avoid if you want to borrow with BKR?
When looking for ways to borrow money with a negative BKR registration, there are several pitfalls to watch out for:
Illegal lenders
Stay away from providers who claim to provide "guaranteed" loans without any credit checks. These often operate outside the supervision of the AFM and can charge extremely high interest rates and hidden fees. At worst, you may have to deal with aggressive collection methods.
Borrowing to pay off other debts
Without a good plan, paying off debt with new debt often leads to a downward spiral. If you have existing debts, it is usually wiser to seek debt assistance through your municipality.
Unlicensed foreign lenders
Some foreign lenders advertise loans without a BKR test. If these are not licensed for the Dutch market, you are hardly protected by Dutch consumer laws.
Collateralized loans without good terms
Be careful with loans that require you to pledge valuable possessions such as your car or jewelry as collateral. The terms are often such that the slightest delay in payment will cause you to lose your possessions.
Instead of considering these risky options, it is wiser to seek professional help to improve your financial situation or challenge your BKR registration if it is disproportionate.
"Every day I see people who choose expensive loans with usurious interest rates out of desperation, while often not even knowing that their BKR registration might be legally questionable. Before you decide on risky loans, always have your registration examined to see if it is justified and commensurate with your current situation."
Deepak - Legal Specialist
Do I have a BKR registration?
Are you curious whether you are dealing with a positive or negative BKR registration? Request your free and simple BKR summary on. This organization keeps track of all closed credits, loans and mortgages. Details such as arrears and payment arrangements are also reported and registered with the BKR. See more about the BKR, BKR registrations and the different BKR codes.
Do you want to become creditworthy again? Find out what Dynamite Netherlands can do for you.
Request help directlyOur BKR registration specialists
Frequently asked questions about borrowing money with negative BKR
Which bank will lend money with negative BKR?
Can I borrow 5000 euros without BKR testing?
Which app allows you to borrow money with a negative balance?
How can I borrow money to pay my debts?
Are you stuck with a negative BKR registration and want to be financially free again? At Dynamite Netherlands, we understand your situation. We've already helped thousands of people get their registration removed so they could regain access to normal loan terms. Find out if your BKR registration is also legally contestable with a free consultation. Contact us today and take the first step to financial freedom.
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