Do you want to borrow money in a sensible way? Then preferably borrow from a bank or other financial institution that does use the BKR registration. Because although the BKR system is seen by more and more people as an obstacle (“if you are registered negatively, you will never get a loan again”), the BKR event can protect both borrower and lender from a pitfall.
First of all, a little more about the BKR. The abbreviation BKR stands for Bureau KredietRegistratie, an institution located in Tiel. This agency was founded by the financial industry at the time and acts as a 'watchdog' for banks and other financial institutions. At the BKR , data of consumers is stored, such as who has taken out a credit where and whether payment arrears have occurred (now or in the past). In this way it can be prevented that banks and credit institutions lend money to notorious defaulters, or to people for whom it is actually not (any longer) justified to take out a loan. You can take advantage of the latter if you want to borrow wisely.
Borrow wisely with a BKR registration
Borrowing sensibly starts with the purpose for which you want to borrow. We assume that you have a specific goal in mind with your loan, such as replacing broken goods or having a necessary repair carried out. After all, “borrowing wisely” and “wanting to go bracing for a few days” do not go together. Anyway, back to the loan. You can of course try to borrow money from family or friends , but also from an official lender . Even if you are already known at the BKR! However, it depends on how you are known, and your own attitude also makes a difference. If you apply for a credit, always be honest about an existing BKR registration. A possible check will reveal an already outstanding credit anyway, but disclosing things in advance inspires much more confidence than concealing.
Why is it wise to borrow with a BKR registration?
The BKR system is there so to speak. The purpose behind it is not only to protect financial institutions, but also to protect consumers who would otherwise take out irresponsible (high) loans. If you are allowed to borrow $ 15,000 on the basis of your income and you are known at the BKR with an existing credit of 5000 US dollars, an institution that performs a BKR check will never lend you more than $ 10,000. This prevents you from going overboard and borrowing more than you can pay back on the basis of your income.