Borrowing money and the Dutch Credit Registration Office
In the Netherlands, many people are registered with the Dutch Credit Registration Office (BKR), for example because they have a credit card or a mobile phone they are paying for in instalments. So just what is this BKR registration? And how does being registered affect an application for a loan? In this article I go into this a bit more fully.
Protection against excessive borrowing
The BKR was created to better protect Dutch people from borrowing excessively. This is done by means of a central register of loans and arrears. Any credit of €250 or more with a term longer than a month is registered with the BKR. Examples include a loan, a credit card, purchases made on instalment, overdrafts and a mobile-phone subscription that includes a phone.
Not registered
Student debt and loans from friends and family are not registered with the BKR. This is also true of arrears with the Tax and Customs Administration, health insurers, energy companies, and housing associations. Your mortgage will be registered only if you fall behind on payments.
Legal obligation
If you’d like to borrow, we always check beforehand whether you’re registered with the BKR. This is also required by law. If you see a lender online that promises not to do a BKR test, don’t fall for it.
Positive registration
Everyone who takes out a loan gets a positive BKR registration. And if you repay on time, there is nothing to worry about. In fact, if you apply for a loan with us and you have a positive registration, we will immediately see that you can borrow money responsibly. So in this case, registration works to your advantage.
Negative registration
It’s a different matter if you fail to repay your loan as agreed. The same is true if you get into arrears. This can pose a problem down the line if you would like to buy a house or take out a new loan. Good to know: you will get a negative registration only if you fail to pay two or more instalments. And you’ll always get a warning first.
Have you paid off your loan?
After it has been paid, each loan can still be seen on the BKR for five years. So when you apply for a new loan, we can see which loans you have had in the past five years. If you’d like to know whether you have a BKR registration, or would like to take a look at your details in the register, you can request your credit information. You can do this, at no charge, on the BKR website.