The A3 coding at BKR explained
An A3 code is one of several types of codes you may encounter in your credit report from the BKR. This code indicates that you are (or have been) in arrears and that this has been charged off or forgiven by the lender.
This means an A3 coding from BKR
Thus, the meaning of an A3 coding is that the credit is (or has been) in arrears, and then a charge-off or waiver has been made on the credit.
To better understand this, it is worth remembering that A3 coding consists of two parts.
- The code A on a credit, means that a payment default has occurred on this credit. We also speak of a
- Code 3 is a particularity code indicating what is going on with the backlog. In this case, that is, a write-off or waiver has occurred.
Other particularity codes are 1 (a settlement was made), 2 (the claim was made due), 4 (the debtor could not be reached) and 5 (a preventive arrangement was made to avoid a debt or other coding). These codes are combined with an A (i.e. A1, A2, A4, etc.) or H code.
In addition, the code H ("Recovery Notification") may also occur. This indicates that there was an A code, but the arrears have been paid off.
Of all these codes, an A3 code is considered quite serious. This has to do with the fact that it is a sign that the lender has chosen to waive a portion in order to get at least some of the money back.