From the age of 18 you are legally mature. From that moment on, you can do all sorts of things without your parents’ permission. That way you can get your driver’s license and you can vote in the elections. You are allowed to do much more, and it is of the utmost importance that you consider whether you actually want to.
We are talking about taking out telephone subscriptions and taking out loans. If you buy on installment you can do on your own from your 18th. It looks like Valhalla at first. You can buy and do anything without having to ask for permission. One of the things that we called you, taking out a loan, is something that you shouldn’t do without limit.
What is being checked?
Before you take out a loan you probably have to enter information about yourself and your income. You do need an income if you want to take out a loan. After all, you will have to repay the money that you borrow to the creditor. At first, people are often very diligent when it comes to taking out loans. You have to start small if you are going to live independently, but you want nice things in your first house. Many people therefore take out a loan.
The Dutch government has a supervisory function when it comes to the rights and duties of you as a resident. That is why the government protects you from having too many debts. The Credit Registration Office has been created for this purpose. That BKR has a protective function towards you when you want to take out a loan, but also towards the lender. After all, they would like to know whether you have payment obligations elsewhere.
Once you have already taken out a number of loans, it can easily be concluded that you cannot meet your payment obligations. In that case, the BKR will issue a negative recommendation to the institution where you want to apply for a loan. If you just pay off your loans, only the loan will be listed. If you have finished paying off the debt at some point, the lender will cancel the loan, which means that you will be able to repay a debt on paper.
What happens if you do not pay on time
However, the moment you do not pay your repayments on time it might just go wrong. At that moment you will receive a so-called negative BKR listing. As a result, a warning will appear next to your name. You are not creditworthy for a lender. This means that you cannot apply for a loan, but that, for example, you cannot take out a mortgage when you want to buy a house.
Now it can of course be that you do not want to take out a mortgage at all and that you have not taken out any loans. In that case you should look carefully at your telephone subscriptions. This also applies as a contract with a monthly payment obligation. A telephone subscription is therefore listed at the Credit Registration Office. You have incurred a delay in the payment of your telephone subscription faster than you might think. Missed a direct debit a few times; in that case you have a negative rating.
When that happened to you, you have a problem if you want to take out a different subscription for your telephone. The telephone provider always checks you at the BKR and will then find out that you have a problem with your creditworthiness.
What is over-credit?
A negative rating is therefore something that should be prevented against everything. You just have to keep up with payments on subscriptions and with entering into and paying off loans. Only in this way will you remain registered as a creditworthy person. Apply for a loan from a bank that does not perform a BKR check; in that case, the bank or company providing the loan runs an unnecessary risk. You may be faced with over-credit. This actually means that you pay too high a monthly amount for the repayment of credits and subscriptions and therefore not enough money for other things that are also important, such as daily shopping.
Those who have a negative rating usually know that themselves. You may have heard it the moment you wanted to take out a subscription for your cell phone. In that case you can request a printout from the Credit Registration Office. It states the amount involved and the credit provider that applied to it.
If it concerns a debt that has been repaid for a long time, you can ask the creditor to remove the report. If it is a debt that you are still paying, you will have to deal with it. In that case you can only go to an organization that offers you to delete your registration.
Have your BKR listing removed
Such an organization mediates for a fee between you and the creditor and takes on the accounting activities that go with it. Of course you pay for those services. These types of organizations do not apply any no cure no pay rates, so you will lose an amount in any case. It is therefore up to you how much you want to get rid of your over-credit rating.
Depending on the complexity of your situation, you have lost an amount between 420 and 750 euros to have your negative listing reversed. An organization that has your over-credit listing removed does so in a legal manner. So there are lawyers who know all the ins and outs of the law and know exactly how they can have your payment arrears and debts legally removed from this register.
The moment your over-credit has been removed from the system, it is of course important that you keep it that way. You can do this by thinking carefully before you borrow money or, for example, request financing for an expensive utensil such as a car. Putting money aside every month sounds old-fashioned, but is still the best method to stay out of debt.