If you want to borrow money and search and read about this, you will soon come across the word BKR registration. But what does that mean?
BKR stands for Bureau Krediet Registration and is an organization based in Tiel. The organization was founded in 1965 by banks and financial institutions that saw a social problem arise. They saw that more and more people are going to borrow without being able to pay it back. BKR provides information to financial institutions. Based on that information, they can determine whether they will offer someone a loan. If you borrow an amount, in whatever form, you will be registered with BKR. But this does not have to have any negative consequences.
If you do not pay off your loan on time, you will be faced with a negative BKR registration. A code is placed with your BKR registration, in which you can see that you have payment arrears, for example. If you then try to apply for a loan again, there is a good chance that the application will be rejected. The BKR itself does not reject applications, they will only provide information. The lender makes the choice based on that information.
Borrowing money from a provider, without having to do a BKR test, might be a solution. It is difficult, but not impossible. Borrowing private money without BKR testing takes the form of a mini loan. It is a loan of a few months and with a limited limit (often up to 1500 euros). Always check the interest rates charged on a mini loan. These are often higher than you would normally expect with a loan.
To receive a mini-loan, you must meet a number of conditions with which you can prove that you can repay the amount within the stipulated period.