What debts does the BKR register?

You've heard of a BKR registration. And you know that such a registration can get in the way of your life goals ugly. But which debts does BKR register? And what does it mean for you when you have such a registration?

No worries. In this article, you will read not only what debts the BKR registers, but also how to get rid of them if you indeed face such a registration.

Content:

• This is a BKR registration
• So exactly what credits and debts does the BKR register?
• Personal loan or revolving credit
• Purchasing with a credit card
• Being in the red on your bank account
• Private lease contracts
• Subscriptions with "free" cell phone
• The significance of a BKR registration
•  Positive
•  Negative
• What does it mean for you?
• Resolving registration of a debt with the BKR

Would you like to know exactly when you will receive a registration? Then read when you will receive a BKR registration.

This is a BKR registration

The Bureau Krediet Registratie ( BKR) keeps track of loans taken out and debts incurred by everyone in the Netherlands. Such a registered loan or debt is called a BKR registration. Any payment arrears are also tracked.

Lenders use these registrations to determine whether it is responsible to grant you a (new) loan.

First of all, below you can read what kind of credits and debts the BKR registers. This will give you a first idea if you might be dealing with such a registration.

Then we will go into more detail about what a BKR registration means for you. And what you can do if the registration would interfere with your life goals.

How does removing a BKR registration work?

So exactly what credits and debts does the BKR register?

The BKR registers all loans, credits and debts over €250 that you take out. Exceptions are student debt and a mortgage. However, the latter does cause a (negative) registration when you fall behind in payments by at least three installments.

Yet many people are not aware of all the things, loans and debts that the BKR records. Therefore, we list the most important ones for you.

1. Personal loan or revolving credit

When you take out a personal loan or a revolving credit of more than €250, the lender is obliged to report this loan to the BKR.

With a revolving credit, you have agreed with the lender a limit to which you can withdraw money. You pay interest and repayments on the amount withdrawn and you can withdraw the amount again. If the agreed limit is higher than €250, a revolving credit is registered with the BKR.

2. Spending limit of your credit card

Your credit card spending limit is registered with the BKR.

With an installment credit card, you pay back a portion of what you have purchased each month. You have agreed with the credit card company an amount up to which you may make purchases. Is that amount higher than €250? Then this is known at the BKR.

3. Being in the red on your bank account

A similar situation is standing in the red on your bank account. Again, if you are allowed to be in the red for more than €250, this is known to the BKR.

4. Private lease contracts

When you have entered into a private lease contract for your car, you pay monthly fees on this. This consists of:

• A financial component. This refers to spring and depreciation.
• A service component. These are taxes, maintenance, repairs and insurance.

The financial component is 65% registered by the BKR.

5. Subscriptions with "free" cell phone

Many people don't realize it, but when you take out a phone plan with a "free" cell phone, you are actually buying the phone on credit. Is that phone worth more than €250 (which applies to almost all phones nowadays)? Then this phone is registered with the BKR.

6. Mortgage arrears

As mentioned, a mortgage is not registered as debt by the BKR. However, this will happen if you are 90 days (three installments) or more behind on your mortgage payments.

Unsure if you have a BKR registration? You can easily see for yourself if you have a BKR registration.

Credit registration with the BKR need not be a problem in itself. In most cases, it only becomes a problem when you fall behind on repayments.

These debts are registered by the BKR as a so-called negative BKR registration. Below, we explain the difference between a positive and a negative registration and what this means for you in practice.

The significance of a BKR registration

As mentioned, lenders use the overview of BKR registrations to determine whether it is responsible to grant a (new) loan. Such a registration remains for up to five years after the debt or loan has been repaid, so lenders can see as far back as which loans you have had.

Read more about how long a BKR registration remains in place.

In doing so, it is good to know the difference between a positive BKR registration and a negative BKR registration. And - of course - what it means for you.

A positive BKR registration

Basically, there is no immediate problem when you have a BKR registration. After all, the BKR registers debts and loans you have taken out. If you have always paid on time for their repayment, we are talking about a positive BKR registration.

If it is a loan or credit that is still outstanding, such a positive BKR registration may well affect the amount you can borrow, for example for a mortgage. This is because the lender deduces that you already have monthly payment obligations and therefore less disposable income available for repayment of the new loan or mortgage.

A negative BKR registration

If you fall behind on repaying a loan or debt, the BKR will record this as a negative registration. This is also known as a arrears report or A code. See our overview of all BKR codes for more information. For lenders, this is a sign that you have had problems in the past with repaying loans or credits (on time).

A negative BKR registration will also remain for five years, even after you have repaid the full amount.

What does a BKR registration mean for you in practice?

A BKR registration can have far-reaching consequences if, for example, you are planning to take out a mortgage or (business) loan.

In particular, these are negative BKR registrations, which can throw a spanner in the works even after the debt or loan has been fully repaid. This is because for a (new) lender it can be a reason to be reluctant to promise a new loan or lease agreement.

This means that a negative BKR registration from years ago can still stand in your way today when leasing your dream car or taking out a mortgage for your dream home. This is very annoying, of course, especially since your financial situation may now be completely different from what it was a few years ago.

Resolving registration of a debt with the BKR

It takes five years for a BKR record—after the debt has been repaid—to be automatically removed by the BKR. However, that doesn’t mean you have to wait until then to get rid of your BKR record.

For example, you can object yourself to the lender to which the registration relates:

• State why you think the BKR registration should be removed
• Describe the adverse effects you are experiencing from the registration (for example, that it is hindering you from obtaining a mortgage)
• Substantiate the objection with documents where possible

Of course, you have a better chance of success with a partner who deals with the removal of BKR registrations on a daily basis. At Dynamiet Netherlands, we are happy to take the time to work with you to determine your chances of increasing your credit rating by having your registration removed.

Wondering what we can do for you? Then schedule your free, no-obligation intake today. We will contact you and explore the possibilities with you.

Watch our introductory video with Mr. Frank Visser