The BKR stands for the Credit Registration Office, the organization that keeps track of the loans that we take out in the Netherlands. You automatically enter the register when you decide to take out a loan.
What is the BKR?
The BKR is an institution that works for the various banks in the Netherlands. It is an independent institution that looks purely at the loans that we take out in the Netherlands. The great thing about this is that people don’t actually judge it, but only look at the objective situation. It is then the banks and other lenders who, for example, indicate that a certain code means that you cannot just take out a new credit. Consider, for example, the A-codes of the BKR, which usually result in you not being able to take out a new credit.
What does the BKR do?
The Credit Registration Office will receive a notification from the banks when you decide to take out a regular credit. A report is made, as it were, on the basis of which the BKR subsequently records this in the administration. Suppose, for example, that you want to borrow $ 5,000, the BKR will note that and thus ensure that other banks can check this. The BKR can receive a notification from the banks that you are lagging behind, in order to subsequently issue an A code and, as it were, to provide a warning for the banks.
Borrow money without BKR
Do you want to borrow money without the Credit Registration Office discovering it or being able to report it? Then it is wise to take a good look at the possibilities of a mini loan, or another loan of a few hundred USD at most. In that case, most lenders do not report this to the Credit Registration Office, which means that you can borrow the money fairly anonymously. Have you repaid the credit? Then there is in any case nothing to be found at the BKR and therefore has no consequences for other loans.
Borrow money with BKR
On the other hand, you can also deliberately borrow money with BKR, since the Credit Registration Office will ensure that you do not borrow too much via the banks. The BKR keeps track of the loan and informs the banks whether you are currently in debt. Are you making a new application and are you unable to pay that loan? The banks will then use the data from the Credit Registration Office to check this and then indicate that you do not just have the option of taking out a new loan.