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Credit card and BKR registration: What about it?

Written on June 27, 2019 by Credit card and BKR registration: What about it?

Credit card: the pros and cons

In many countries today, you can simply use your debit card. Even when ordering from international online stores, a debit card is increasingly accepted or you can make the payment using an account where you can put a balance on it without a credit card. The need to purchase a credit card has thus decreased in recent years. However, many people still have a credit card so as not to be unexpectedly unable to make a payment. This is because with a credtit card, you can be almost certain that your payment will be accepted everywhere. Moreover, with a credit card you pay in arrears.

But is it wise to purchase a credit card? Do you always get registered with the BKR when you have a credit card? In this blog, we take you through:

The pros and cons of a credit card
The impact of a credit card on a BKR registration
When you become BKR-registered
How to get rid of a negative BKR registration

Is it wise to purchase a credit card?

Whether it is wise to purchase a credit card depends on your personal situation. Sometimes it can be convenient to have a credit card on hand. For example, when your favorite online store only accepts credit cards as a form of payment. And sometimes you want some extra safety and security when you go on vacation.

Imagine if your wallet with cash and debit card is rolled? Then you still have your credit card behind you. In other situations, a deposit must be reserved on your credit card so you can rent a car. Whatever the reason, it may be wise or necessary to purchase a credit card.

The benefits of a credit card:

Pay afterwards. The credit card bill comes once a month. So all purchases you make during the month will be charged at once, at the end of the month. There are no additional fees for this.
Flexible repayment. Of course, you prefer to pay your credit card bill in one lump sum. But if that is not possible, you can pay in instalments. Please note that the bank where you purchase your credit card will charge interest on the amount. Repaying in installments offers flexibility, but does affect the way BKR views your credit card. More on this later.
Great customer service. Do you have questions or problems? Then you can contact customer service 24 hours a day, including abroad.
Secure online shopping. By using a credit card, your online order is insured and you can cancel it if necessary.
Worldwide payments. Credit cards are accepted in all corners of the world. This eliminates the need to carry large amounts of cash.

Disadvantages of a credit card:

Withdrawing cash is expensive. Withdrawing with your credit card is more expensive than withdrawing with your debit card. Therefore, try to avoid credit card withdrawals.
The fixed cost of a credit card is high. Every year you pay for having the credit card in your possession, even if you don't use it. These fees are higher than the fees you pay for your debit card. Do you use the credit card only on major trips? Then "stop" the card when you return home.
Borrowing is expensive. When you don't pay your credit card bill on time, the amount is considered a loan. The interest rate on this loan is usually a lot higher than if you take out a personal loan from the bank. This loan can result in a BKR registration.

Will I always get a registration with the BKR if I have a credit card?

No, you can assume that you will not get an immediate BKR registration when you purchase a credit card. But there are exceptions to this rule. For example, do you have a credit card with a loan that you will repay in installments? Then you will have to deal with a BKR registration.

Have you forgotten to pay your credit card bill and it takes longer than 60 or 90 days? Even then you will face registration with the BKR. A credit card does not produce a registration if the amount is repaid within 30 days.

Is a BKR registration always negative?

First, it is good to realize that there are two types of BKR registrations. Namely, a registration with the BKR can be negative and positive.

A positive registration with the BKR means that you are flagged as having taken out credit. If you pay off on time and therefore do not miss any installments, this will also remain a positive registration.

A negative BKR registration means that you have missed installments and, according to your lender, you are not reliable. By paying off the total amount, whether in installments or not, you ensure that this negative registration gets an earlier end date. This causes the "retention period" of 5 years to start earlier. This is because the credit will then have been paid off. For the final BKR removal, of course, you engage Dynamite Netherlands.

Are there any credit cards that never involve the BKR?

Yes, there are. Consider prepaid credit cards, for example. You can then put money on your credit card before you go on vacation or make a major (online) purchase. You cannot withdraw or spend more than the money on it. This way you can be sure that you are sticking to your budget.

The difference with regular credit cards is that there can be no question of a loan by spending on your credit card and . Yet even these credit cards are not blissful, you should read the fine print carefully to avoid hidden charges.

How do I get rid of the BKR registration?

If you have paid your installments on time and you no longer have any outstanding debts, you may still have a BKR registration on your name. This can be detrimental when, for example, you want to buy a house and need a mortgage.

The BKR registration/negative codes remain visible on your BKR statement for 5 years. This applies even if you have already paid off the loan. However, you may therefore want to take out a mortgage before then. You can take steps yourself and ask your lender to have your registration removed from the BKR. But what if you cannot work it out with your lender? Then Dynamite Netherlands will be happy to help you remove a negative BKR registration.

Dynamite Netherlands is in fact specialized in the removal of BKR registrations. Based on an intake interview, we can quickly indicate whether your case has a chance of success. Dynamite Netherlands will, always in consultation with you, take the appropriate steps to remove a negative BK R registration. It could be that the BKR registration is removed within a few weeks and you can get on with your life.

In some cases, the fight will last longer, for example when it comes to a lawsuit. But even in those cases, Dynamite Netherlands is there for you. They have all the knowledge and know the right ways to remove your BKR registration. If you are wondering "do I have a BKR registration?" you can, for example, request a BKR statement from your bank branch.

Can I approach Dynamite Netherlands with no obligation?

You certainly can. In an initial, free consultation, Dynamite Netherlands will give you all the information you need about the possibilities of removing your registration with the BKR. In this consultation we will also explain the possible follow-up steps and provide information about the costs of engaging Dynamite Netherlands.

And it can be quick too: if you make an inquiry today, you can be heard and helped as early as tomorrow.

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