The abbreviation BKR stands for Bureau Krediet Registration. The BKR was established in 1965 to provide the Central Credit Information System (CKI). In this system all payment obligations of all Dutch consumers who have or had a credit in the last 5 years are recorded.
Why is the BKR there?
BKR ensures that the consumer does not take on too much hay financially. They do this by informing all connected participants / companies (such as banks, lenders, mail order companies, telecom providers, etc.) about loans / credits or mobile phone subscriptions from consumers.
This BKR information from the CKI helps participants / companies to consider whether it is justified to grant a loan or mobile phone subscription to a consumer. This is wise for both parties. As a result, the BKR helps prevent consumers from borrowing too much money. Borrowing money with BKR is therefore often possible to a limited extent. This means that many people want to borrow money without BKR, this is not always possible.
So the BKR decides?
No, the BKR does not decide whether a credit / mobile subscription is provided. The participant with whom the consumer requests a product ultimately decides whether it is justified. This decision-making is not only based on your possible BKR coding, but is combined with data such as income, family situation and housing costs to arrive at a responsible decision. So borrowing 2000 euros quickly depends on your BKR listing. Perhaps a loan with a negative BKR registration is a solution for you.
Disadvantages testing of negative BKR coding
There are different forms of negative BKR coding. It is possible that you only have a very low code because of the non-payment of a telephone bill. In this case you have no real problems but you cannot take out a new loan. This is one of the disadvantages of a too strict negative BKR. There are, however, possibilities nowadays to purchase a credit card without BKR verification, despite a negative BKR coding.