BKR often the bitten dog after loan rejection
Anyone who wants to borrow money will almost always come into contact with a BKR test in any way. BKR stands for Bureau Credit Registration. Lenders can use a check in the Central Credit Information System to see whether you have already taken out a loan and whether that loan has been repaid correctly. In fact, lenders with a banking license are even legally obliged to check your data at the BKR.
The BKR was created in 1965 on the initiative of the Dutch banks and other financial service providers. The fact that it is extremely busy in the location of Tiel is evident from the fact that about a hundred employees earn their living and that more than 850 institutions are affiliated with the BKR. The BKR assessment, feared by many people, is performed ten million times a year and that means cash register for BKR. They charge an amount per assessment to the affiliated institutions. The BKR is often blamed by rejected consumers. Nonsense, because the role of the people in Tiel is only an advisory one. Ultimately, the lender decides whether or not to offer a loan. Borrowing money without BKR is possible, but then it concerns small loans with a short term in which the borrowed amount must be repaid.
Request BKR registration
The BKR test contributes, as certainly the pro BKR people in unison, to the prevention of social problems and prevents large groups of people from getting into financial problems. They do this by protecting the consumer against the disease called 'borrowing too much', an age-old and apparently incurable disease. The group of people who think their financial pole is longer than it really is is still a very large group. In principle, mortgage loans are not registered in Tiel, provided the borrower decides not to meet the agreed payment obligations plus four months. Then the BKR will of course come - and rightly so - into the picture. From this year on, you can request your own BKR registration for free.
BKR only gives advice and certainly not
There are a lot of people in the information system in Tiel, because almost everyone (more than eight million people in the Netherlands) has borrowed or is still borrowing. That is not very surprising, because in 2018 even taking out a mobile telephone subscription - with a phone that is worth more than 250 US dollars, in concrete terms, that is almost every new mobile phone - already reported to the BKR. For example, for the purchase of a new car and for the renovation of your house, it is fairly normal and good practice to take out a loan. It is up to the lenders to ensure that there is not too much borrowing, the BKR is a useful tool. Ultimately, it is always the lender himself who decides whether or not to give you a loan. The BKR only has an advisory role and therefore does not make the final decision whether or not you can borrow. If the test yields a positive result, then the lenders are sometimes literally raring with impatience and are ready in rows of ten to do business with you. For this group, a positive registration equates to a customer who pays back properly and on time, and every provider would like to do business with that. Then any risk seems out of the question.
No negative registration? Then pay on time
Those who do not want a negative registration can achieve this simply by always paying on time. That's all it is, child can do the laundry. Not on time stands for a letterbox full of reminders and reminders. Before a provider submits a so-called arrears report in Tiel, the consumer always receives a very last warning. Then you are still able to prevent a negative registration. If you do not pay yet, the negative registration is a fact. People who have repaid a loan and have thus terminated the contract with the lender will still have the data in the system for five years. However, their name states that the loan no longer applies to that; In this way, the provider knows that there are no longer any financial obligations and nothing else stands in the way of offering a loan.
Remove BKR registration
People who have a negative registration are often encouraged and made nice on the internet to make that registration disappear - for a fee, of course. Be careful with that. The often expensive companies that claim to be able to do this very quickly, certainly do not always succeed in what they promise in advance with a lot of fanfare. Remove BKR because you mistakenly think you have a negative coding, then call the BKR yourself to discuss the problem. That is more likely to succeed. Removing your BKR registration is actually only possible through the Tiel company itself. Remove BKR via the internet without BKR intervention? Fairytales.
Assessment prevents excessive lending
BKR testing prevents so-called over-lending. Prevents you from borrowing too much money. Borrowing a lot of money often seems so attractive, in the longer term it often results in insurmountable financial problems. A negative registration does not immediately mean that you cannot take out a loan. Incidentally, you can also simply request your data from the BKR. After the application you will usually receive an overview at home after four weeks. The BKR nowadays does this for free for the consumer, the lenders still have to pay for a test.
You cannot reach the creditor
As stated, every loan is registered with the BKR, but there is only a negative coding if there is a payment arrears. There are different codes. The A1 code stands for payment arrears for which a payment arrangement has been made. If you have A2, you are also in arrears and the amount is due and payable. The person from whom you borrowed the money can request a full refund or can go to court with a request to have your money, your wages or even your belongings seized. Code A3 applies if there is a payment arrears and no further agreements have been made with the schudee, and in the case of A4, you are in arrears and the schudee is unable to reach you, despite hundreds of bells and dozens of letters. People who have code H are often very happy people. Code H is the most positive BKR code and means that you no longer have any debts. H stands for recovery.
In addition to the above codes, it is also stated what kind of loans are involved. AK stands for maturing credit agreement in this context, RK on the other hand means revolving credit agreement and RO is Other Obligos, often a business credit. Mortgage Loan is listed as HY and often represents a payment arrears on the Lewis Carl. UK? That is mailing house credit, a credit that is provided by a home work organization. The designation SR is not the best description, as it stands for Debt Mediation. You are then in debt restructuring. Then applying for a loan is - to say the least - a waste of time. You are not going to succeed. The only option left is to ask your mother for money.
Own bank sometimes wants to go a little further
BKR is not a negative thing. A lot of people think so, but that is nonsense. If you have a registration but no payment arrears, the registration shows that you are financially sound and that you are properly meeting your obligations. With just one registration it is often very well possible to borrow. The lender calculates whether you can pay the total amount of loans. With just a registration you often get a loan, with a coding the chance is rather small. What you can still try in that case is to get a loan from your own bank. Your own bank knows you and your financial situation (or the chaos) best and who knows, they may be able to take a hand over their hearts and you will still receive a loan. Will soon be that Mercedes in the driveway. Sometimes your own bank is willing to go a little further than the average lender. With which money you then have to refuel, you will see that again.
Huge interest and fine
There you are. With a code and urgently in need of a loan. You could already see yourself driving that Audi Cabrio. Anyone who is looking really hard will find a party that is willing to lend you some money in the gigantic range of providers. After all, the needle in the haystack is sometimes found. Realize that the coding is not behind your name because people want to bully you and that you cannot remove a negative BKR registration. The coding says that you have not (or not always) been able to pay. Lenders who do want to do business with you often only do so at a gigantic interest rate. And if you do not pay once, a hefty fine will follow. These providers often lack much compassion. Borrowing money is great, but do realize the consequences, be honest and, looking in the mirror, ask yourself the question: can I actually afford it all?
Borrowing is not weak
Borrowing has been done for centuries, by the way. Borrowing is therefore not weak or a matter of laziness. Borrowing is sometimes inevitable and, moreover, the economy is benefiting. There will be very few Dutch people who just pay for a house (certainly not the so-called starters) or a middle class car with their own money. On the contrary. It is not without reason that about nine million people are in one way or another in the system in Tiel. There is nothing wrong with that either.
A matter of self-knowledge and reality
The fact that Tiel has to work so hard may well have to do with the impressive range of lenders, each with their own way of dealing. Variables such as the interest rate, conditions and obligations fluctuate continuously. The consumer can then just completely lose the financial overview, as many borrowers still do not properly read the so-called fine print in the contract of the agreed loan. This can cause confusion and problems, as people also have a lot of trouble finding the best provider, preferably a company that is known as reliable and solid and you do not - as happens - despite significant signals, - you nevertheless tries to find a loan. Consumers should also undergo a change of mentality when it comes to money. When money is involved, consumers tend to think only of the short term. And well, those problems, we'll all see that later. We are now out of the fire first. A negative advice from Tiel should therefore never come as a real surprise to people with self-knowledge and a sense of reality.
Term, repayment term and penalties
And so it is good that the BKR is there, even if they reject your loan request and you can whistle at that glitzy sports car or that gigantic kitchen island. Then just do it in a smaller, cheaper shopping cart, a car that you can also afford. That feels, but beware, also much better than that fat bowl that actually isn't even your own. Also know that the companies working within the so-called financial services do not always only want to provide you with a service, but rather want to fill your own treasury. Above all, the financial world is an opaque world, which fortunately is still somewhat monitored by the AFM. Nevertheless, consumers are often fooled and actually only pay attention to the level of interest, and that is simply stupid. Because in addition to the rate of the interest, matters such as term, repayment period and any sanctions are certainly very important when entering into a loan agreement. This certainly also applies to the 'early repayment' option. Because as said before, apart from the fact that providers do you a favor by lending you money, they mainly want to earn money themselves and run the least possible risk. Always remember that when you are comparing the different providers on the internet.
Anyone who wants to borrow and therefore comes into contact with the Credit Registration Office and is checked for creditworthiness, has quite a few options. There are many different ways to borrow money, but in essence every loan is the same: you borrow a sum of money, you pay interest on it and you have to repay periodically - per month. One of the most common loans is a consumer loan. The borrowed money is used for, for example, the wedding party or buying a car. Within this consumer loan we know two different types: the revolving credit, this loan, which is the most common, and the personal loan, not often referred to as 'expiring credit'. The difference? That is certainly the degree of flexibility and the type of interest.
Credit Card and Mail Order Company
If you have a revolving credit, you can simply withdraw the repaid amounts again up to the amount that you have borrowed. This is impossible with a personal loan. Borrow more or again, then you simply have to take out a loan again. Revolving credit has interest rates that are variable and can, in principle, change percentages every other day. With a PL there is a fixed interest during the term. Quite pleasant because then you constantly know where you stand. By the way, you can also consider using a credit card and buying on installment as forms of revolving credit and this can also result in a notification and coding at the BKR. Even then, there is a limit in terms of credit - for example, you may only buy up to an amount of a maximum of one thousand US dollars from a mail order company, depending on the personal details entered - but the repaid can still be used for new purchases. The most special form of a revolving credit is a WOZ credit, only intended for people with an owner-occupied home. In addition, there are providers who impose an extra requirement on this loan form: there must be equity on the house.
Thus, Personal Loans are also popularly called. Need money? Just arrange a péé-elletje. These personal loans are loans that you pay off monthly and of which you know when the loan ends. Usually a PL is used to buy products that are not really stable in value and thus become worth less money more quickly. A car is indeed a good example. Not infrequently, a car loan is also called a PL, and vice versa of course. But: a personal loan is also often used to go on vacation or to buy a huge kitchen, despite the fact that you have no pans and can do nothing more than fry an egg. The borrowers often see it this way: if the car or the kitchen needs to be replaced, you are also about to get rid of the loan. You can submit an application for a new loan again. Each - and more - of the aforementioned loans is known to the BKR, which knows exactly what your payment arrears are, if you have incurred them because the holiday turned out to be slightly more expensive.
Estimation of the risk
Applying for a loan is no easy task. The provider first wants to gain insight into your personal situation and therefore a number of questions need to be answered. Important data are the net income and the amount of the housing costs. Family composition is also important. People with children usually lose more money than people who do not have children. On the basis of the data, the provider already makes an estimate of their risk and, of course, an assessment is done at the BKR. Then the lights will turn green. Or red.
Borrow money with BKR
You can take out a loan on the internet without BKR testing, borrowing money with BKR is - if you have to believe the websites - so an option. These so-called flash loans, or mini loans, often involve small amounts up to 1500 US dollars. The BKR is not requested and is completely out of harm's way. Flash loans are characterized by the very short term, the loan amount often has to be repaid within three months and these loans work with amounts between 100 and 1500 US dollars. If you relinquish too late, a penalty clause will come into effect and the costs sometimes increase enormously and you are much further away from home.
Borrow money without BKR testing
On the internet you will find more providers who say they can offer a loan without BKR testing. For example, if after BKR request it appears that you have a negative coding. Mountains of gold are promised, but only rarely do these pseudo crooks prove to be able to live up to their words. Moreover, you have to ask yourself, switch off the dollar signs in your eyes and use common sense, whether you want to work with a provider that does not test. How reliable is it all? Admittedly, a negative advice from the BKR is annoying, in any case you know exactly where you stand and it may be better that you cannot borrow. Trying to obtain a substantial loan without BKR testing is unwise. And often a waste of time. Borrowing money without BKR testing therefore means either a mini loan or you will be cheated. Just as you are by companies that state that negative BKR registration can be easily removed.
The BKR does not plague, but mainly wants to prevent social problems. Want to protect people from the urge for a sports car or useless and silly big kitchen. And borrowing money without BKR is not possible, you cannot just go to another body and although the BKR only advises, most of the providers take that advice one on one. Many people see it differently and are furious at the people in Tiel when it turns out that a loan is not available. Completely unjustified, because usually they are right in Tiel and they prevent you from getting even more financial problems. Not infrequently people think they can knit it all together. Not infrequently, a loan also ends in a three-year debt restructuring. Shouldn't you want to. The BKR is there for a reason, the people who work there just do their job and give independent advice. And the golden tip is of course to request your data in Tiel before you take out a loan. Costs you nothing, except four weeks of tension and gray hair. It takes that period before you have the data in the letterbox. Finally, BKR or not, realize that the well-known slogan used when it comes to borrowing, 'borrowing money costs money', is right like a swearing finger.