The Credit Registration Office (BKR) has been in the news quite often lately. This is mainly due to the fact that from 1 December new rules with regard to red will be applied to the payment account. That unrest has arisen because of this has consequences for applying for and receiving a mortgage. So for many Dutch people it doesn’t seem very relevant. Because they live in a rental house and do not intend to buy.
However, what is not so well known is that the rules that will change at the BKR do not only have consequences for a mortgage. It also means that many more people will be registered. As said when someone is standing in a red position or can stand (at least 250 euros). But a lot is also changing in the area of ordinary loans. Whoever borrows money is now not registered in all cases. However, the limit at which that registration is applied is adjusted downwards with the new rules.
Previously a credit registration
The rules will change, but what exactly will change? In fact, that is pretty clear. The possibility of being red without registration is limited. Who can be at least 250 euros in red will be registered. An important detail here is that it is not about whether you are actually in the red. It is only about the possibility. A number of changes also occur when registering credits. Credits of more than 500 euros that run for more than three months are currently being registered.
So this is about personal loans, revolving loans and those types of loans. A purchase or payment or the possession of a credit card is also registered. Under the new rules, both the loan amount and the term will be reduced so that a BKR registration takes place earlier. The duration runs from 1 December to a month. The amount of the loan amount is halved: those who borrow 250 euros or more will be listed in the BKR books.
Is a BKR registration a problem?
The chance that you will be registered with the BKR after taking out a loan naturally increases considerably thanks to the new rules. Is that bad? You would say yes. BKR registrations are not known positively. Whoever has a BKR registration can no longer borrow and the purchase of a credit card is impossible, the idea is. That is why so many loan providers advertise with the possibility of concluding a (flash) loan. A BKR registration is a disaster, is the general belief. In reality, however, this is not too bad. It depends on what type of BKR registration you get.
For example: almost every Dutch person (91%) is in possession of a BKR registration. It simply means that a loan is running at that time. That of course does not have to be problematic at all; most people meet the obligations neatly. Those who pay off properly receive a positive BKR registration. Once the loan has been repaid, this registration will be kept for another five years and then destroyed. A BKR registration only becomes a problem when it is a negative BKR registration. Then you have not met your payment obligations and this is noted. Lenders who encounter your negative registration in the system will not give you a loan so quickly. A negative registration also remains visible for five years.