BKR offers room for concealment - what is and what is not registered?
Consumers with payment arrears will receive a cross after their name at the BKR. But the Credit Registration Office has no overview of all debts, so that existing debts may be concealed.
BKR registrations remain a distant show for many people, while negative registrations can have a major influence on, for example, mortgage applications. A number of loans have also been added recently.
Time to put it together:
- what is actually registered positively ,
- which payment obligations are not recorded
- which debts lead to a negative registration
- why you want to avoid a negative registration.
Which payment obligations are positively registered in the BKR?
The BKR registers the following matters:
- Overdraft on the current account, above 250 us dollar
- Consumer credit (personal loan, revolving credit)
- Telephone (subscriptions) above 250 us dollar
- Since February 2020: mortgages for homes intended for rental or recreational homes
- Since 2020: business loans above 1000 us dollar and with a personal liability of the entrepreneur
- Credit cards
- Installment purchase
- Private lease
Positive registrations 'only' have the consequence that the monthly obligations of these registrations are taken into account in determining the responsible borrowing capacity.
What is not registered?
Payment arrears and debts that do not end up with the BKR:
- Student loans (these are registered at DUO)
- Lease contracts from companies that are not affiliated with the Private Lease Quality Mark
- Arrears with the tax authorities (tax liabilities)
- Arrears with health insurers (health insurance premiums)
- Backlogs with energy companies
- Rent arrears with housing corporations
- Private loans: loans from friends or family
- Collection agencies
The fact that the BKR does not have these debts in the picture does not mean that they are not there; they can indeed be a signal for (possible) financial problems for consumers. For example, DUO reports that 17 percent of former students have problems with the timely repayment of their student debt.
Which debts lead to a negative registration?
A negative BKR registration starts with payment arrears of three months of:
- Consumer credit
- Private lease
Anyone who is more than 60 days in arrears with the bank, lender or lease company will receive a code.
But you should actually be careful about coding with a first reminder, for example 10 days after reversal of a direct debit.
Consequences of negative BKR registration
Every bank that lends money for a mortgage first goes to the BKR for advice. Are there other debts? Are there any payment problems, now or in the recent past (5 years)? With a negative BKR registration, or payment arrears of (more than) 3 months, it becomes almost impossible to take out a mortgage. Only 5 years after paying off the debts, you will start with a clean slate.
Fortunately, not all negative registrations have the same weight: there are different codes and variants.
If someone has properly caught up in payment arrears and there have been no more problems afterwards, that is the green light for the bank to provide a mortgage. But a bank will always keep financial security in mind and by no means all banks show leniency when payment arrears have been made up. Past events are no guarantee for the future.
Concluding a private lease contract with a negative BKR registration is - in the same line - usually not possible.
The same applies to taking out a consumer credit such as a personal loan.
How do you prevent a negative BKR registration?
Are you considering taking out a loan? Then it is good to know which types of loans actually lead to a BKR registration and how you can (in some cases) prevent registration. The BKR itself gives the following tips to prevent a negative BKR registration:
- Pay on time, for example with direct debit
- Also when moving, leave your correct contact details with a lender (address, e-mail, telephone number)
- Respond to alerts and payment reminders
- Discuss a payment arrangement with your lender
- Resolve the payment arrears as soon as possible and show that you take financial problems seriously and solve them
- If necessary, seek help from municipal debt counseling
Also read this previous blog with our tips for borrowing responsibly . Borrowing money is absolutely no shame, as long as you can bear the burden and do not get into financial trouble. Because even if the BKR does not (yet) have an overview of all debts, borrowing money always comes with financial obligations and the responsibility lies with you: borrowing money starts with yourself .