How Does the Electricity Bill Loan Work?
If you're in debt and in urgent need of cash, this complete guide on borrowing money from your electricity bill is for you.
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The Credit Opportunity You Need, Even If You Have Bad Credit
Have you ever imagined getting credit even with a negative credit rating? Well, this opportunity exists, and it's more accessible than you think!
Electricity bill loans, also known as “Alternative Lending,” are a solution that has been gaining more and more followers in Brazil.
Since 2019, this modality has helped thousands of people overcome financial difficulties, even when they face restrictions on their credit.
In which regions is it available? Currently, this type of credit is available in states such as São Paulo, Rio de Janeiro, Ceará and Rio Grande do Sul, among others.
If you live in one of these regions, now might be the perfect time to consider this option.
Advantages of choosing this modality
- Access to credit even with a negative credit rating: Ideal for those with name restrictions.
- Automatic payments: Loan installments are debited directly from your electricity bill, making financial organization easier.
- Flexibility and speed: Simple and fast processes, with approval in just a few days.
What is a Loan on an Electricity Bill and How Does it Work?
Although not yet as popular, electricity bill loans have proven to be an excellent alternative for those who need quick and convenient credit. But how exactly does it work?
Debited from the electricity bill The main difference between this line of credit and traditional loans is that the installments are added to your electricity bill.
This means you pay the loan along with your monthly electricity bill.
The loan amount is clearly stated on the invoice, separating energy consumption from the financing amount.
Security for the creditor and consumer This modality offers security for both the creditor and the consumer.
For the creditor, the guarantee of payment is high, as non-payment can result in fines and even power outages.
For the consumer, the advantage is ease of payment and a lower chance of default.
How to Request a Loan on Your Electricity Bill
Now that you know how it works, let's take a step-by-step guide to quickly and easily requesting your loan.
1. Check availability in your region First of all, it's important to check whether your electricity company offers this type of credit.
As mentioned earlier, this option is only available in some regions of Brazil.
If the service is available in your area, you can proceed to the next steps.
2. Gather the necessary documentation To begin the application process, you will need the following documents:
- Work Permit: Proof of professional activity.
- ID and CPF: Personal identification documents.
- Bank receipt: Your current account details.
- Proof of residence: A recent energy bill, up to 2 months old.
3. Make the request online Most financial institutions allow the entire process to be done online, offering convenience and speed.
Simply access the website of the chosen institution, fill out the forms with the requested information and send the necessary documents.
In general, credit approval and release occurs within 48 hours.
Tip: Before completing your application, compare the interest rates and terms offered by different companies to ensure you are getting the best possible deal.
Can People with Bad Credit Request a Loan on Their Electricity Bill?
Yes! This option is particularly advantageous for those with a negative credit rating or a low credit score.
The reason is simple: the payment guarantee is high, as the installment amount is included directly in the electricity bill, which significantly reduces the risk for the financial institution.
Because of this, even those with a negative credit history can apply for credit.
Attention to interest rates While it's possible to get a loan even with credit restrictions, it's important to remember that interest rates may be slightly higher for those with a low credit score or negative credit history.
Therefore, it is always a good idea to compare several options before deciding.
Where to Find the Best Low-Interest Loan Options
Now that you understand how electricity bill loans work, let's see which companies and institutions offer the best terms for this type of loan:
1. Loan through EDP Electricity Bill EDP is one of the main energy suppliers in Brazil, especially in the states of São Paulo and Espírito Santo.
If you live in one of these regions, you can check with partner companies, such as Piki, to see what credit terms are available.
2. Loan for ENEL Electricity Bill ENEL is an energy distributor of Italian origin, with coverage in regions such as São Paulo, Rio de Janeiro, Ceará and Goiás.
The institution works with several financial institutions that offer loans on electricity bills.
3. Loan through Piki Electricity Bill Piki is a startup specializing in consumer account debit loans, operating in states such as Ceará, Goiás, São Paulo, and Rio de Janeiro.
Approval is quick, and the first installment is only charged after 30 days.
4. Loan for Crefaz Electricity Bill Crefaz, authorized by the Central Bank, offers values between R$200.00 and R$1,000.00, with the possibility of payment in up to 18 installments.
Ideal for those who need quick and practical credit.
5. Loan through Plancred Electricity Bill Plancred offers 100% online contracting, with amounts released ranging from R$200.00 to R$1,000.00.
It's an excellent option for those who can't prove their income, as it accepts savings accounts.
6. Loan through CPFL Electricity Bill CPFL Energia offers a loan option that debits electricity bills, ideal for those looking to pay off energy debts. The funds released go directly toward paying off outstanding bills.
7. Loan for Equatorial Electricity Bill Present in regions such as Alagoas, Maranhão, Pará, Piauí and Rio Grande do Sul, Equatorial offers this type of credit, available only to customers served by the company.
How to Choose the Best Loan Option for Your Electricity Bill?
Choosing the best option can be a challenge, but Consulta Cred is here to help!
Our platform allows you to compare different credit options, analyzing interest rates, terms, and conditions.
This way, you can make an informed decision and ensure you're choosing the best alternative for your profile.
Conclusion
A loan using your electricity bill is an affordable and practical solution, especially for those with bad credit who need quick credit.
Although it is still a relatively new modality, its popularity has grown rapidly, and it is likely that more regions of Brazil will offer this option in the coming years.
If your city already has this option, it's worth considering, especially if you have a low credit score or a bad credit history.
Remember to always evaluate the best options, and when it comes to finding advantageous lines of credit, Consulta Cred is your ideal partner.
