Anyone who has ever taken out a loan is known to the BKR and may have also been granted a certain code.
But what exactly is the function of the BKR, and perhaps even more important: who can use the BKR?
Who can call on the BKR?
Anyone who is affiliated with the BKR can appeal to the data from the BKR. These are almost all financial institutions in the Netherlands. For Dutch banks it is even mandatory to cooperate with the BKR. For banks, it is important to be able to carry out a review at the BKR in order to get an idea of the lending history of the potential borrower. If, for example, there have already been problems with paying off loans in the past, it will become less attractive to provide this person with loan. If the person in question still has a large outstanding debt somewhere, then the risk that this person can no longer repay the loan is of course quite large. All these different questions (and especially the corresponding answers) ensure that a bank can get a clear insight into the financial situation of the person who has applied for a loan and that is very important to be able to make a good judgment. regarding a possible new loan.
Can my loan be refused by a negative BKR coding?
As mentioned earlier in this article, banks and all other companies or bodies affiliated to the BKR can carry out a so-called review. This is when a potential customer wants to receive a loan with BKR. During this review, the possibility is also examined whether the potential borrower has a certain encryption at the BKR or not. If this is the case, the bank in question will become very suspicious as regards the approval of a new loan. Only in case of arrears is it impossible for banks to approve another loan since this code is only given to people who were unable to meet their financial obligations.
Loan with BKR
A loan with BKR is nothing more than a loan from a BKR-affiliated company. Each loan with a bank is a loan with BKR. With a loan with BKR, it can therefore be determined fairly accurately whether it is justified to lend you more money. If you can no longer meet your payment obligations, which means that you can no longer pay off the loans, you may end up in debt repayment. Nobody benefits from that. Banks will therefore carry out a BKR review with every new loan application (this is mandatory for every loan with BKR). In fact, they look at the customer’s loan history.
Is such a BKR review then only for banks?
When a loan is requested with BKR, the bank knows exactly what the borrowing history of the potential borrower is by means of a check at the BKR, so that the bank in question can make a good estimate of the danger of granting a loan. . However, what we sometimes overlook is the fact that a review can also be beneficial for the borrower in question. If, for example, it becomes even deeper in debt when entering into a new loan, it is good that this is prevented. In this way, the BKR protects not only the banks and other financial institutions that are affiliated with it, but also the potential borrowers. The BKR system protects consumers against themselves, you could also say. The BKR is more important than everyone thinks. You can think about a loan without BKR registration, but afterwards you can only have yourself with it (if you can not repay the money).