Apply for a payday loan with BKR
If you are going to apply for a loan, this will be registered with the BKR. Through this BKR registration, other banks know that you have already taken out a loan and for what amount you have borrowed. There is nothing wrong with this, requesting a payday loan with BKR is therefore simply possible. And this does not only apply to applying for a payday loan, but you can also apply for a revolving credit while you are registered with the BKR (Credit Registration Office).
What is the BKR for?
The BKR is there to protect you as a consumer from the financial problems that borrowing can cause. Nowadays, borrowing money has become a whole lot cheaper than a few years ago. Due to the low interest rate, more and more people are taking out a payday loan, revolving credit or a mortgage, for example. Due to the credit registration, the interest rates in the Netherlands are lower than in the countries where no credit registration takes place.
When a BKR registration?
You will be registered with the BKR for every loan you request. If you are red at your bank or credit card company you will also be registered with the BKR. This allows other lenders to see that you can borrow responsibly.
Apply for a payday loan with BKR
Many people who know they are registered with the BKR do not apply for a payday loan because they think it will be rejected anyway. In many cases this is not the case at all and you can simply request a payday loan with BKR. If you have no payment arrears anywhere, then it is proof that you can handle a loan responsibly.
BKR coding and borrowing money
You can request a payday loan with BKR unless you have a code behind your name. With a BKR coding it will be harder to apply for a loan. If you have a BKR code and you are refused by various lenders, it is advisable to request a loan from the bank where you also have your bank account. This bank knows your financial household and may be more willing to provide you with a loan.
As we wrote, it will be harder to apply for a payday loan if you have a BKR code. A BKR code means that you have committed a financial misstep in the past so that you now have a code behind your name. Below we briefly explain what the different BKR codes mean.
- A1 coding: You have incurred payment arrears, but a payment arrangement has been made.
- A2 coding: You have incurred payment arrears but the amount is due. The person with whom you have a debt can claim the amount back at once or have it seized through the courts.
- A3 coding: You have payment arrears. Agreements have been made with the creditor.
- A4 coding: You have payment arrears and you are unreachable for the creditor.
- H coding: This is a positive BKR coding. The H means that you no longer have any debts. The H stands for “recovery”.
Borrow money with a BKR coding
Although you have a negative BKR coding, you can still take out a loan by searching properly. In that case you will have to compare the payday loans to see if there is a lender in between who, despite your negative BKR coding, wants to provide you with a loan. You will have to take into account that if you can apply for a loan with a negative BKR code you will usually pay a high interest rate. You will also receive a hefty fine for late or non-payment of a term. So if you want to apply for a payday loan with BKR you have to ask yourself whether you can repay the loan on time.