Direct Consumer Credit – Find out what CDC is and how it works

What is CDC and how does it work?

In fact, the CDC is one of the ways to have quick money in your hands and solve once and for all the problem of financial difficulties or the desire to consume.

Certainly, at this initial moment you must have many doubts about this term. After all, the credit modality is a personal loan? How exactly does this feature work? This is what we will see in the following lines.

What is CDC?

At first, CDC or Direct Consumer Credit is nothing more than a type of financing to acquire certain products or services, as well as purchases paid in installments on a credit card or a personal loan, for example.

Therefore, the amount released from client to client may vary, as everything depends on income and credit analysis of each particular consumer.

How does direct consumer credit work?

Direct Consumer Credit aims to pay for purchases in installments. In other words, if you are interested in a consumer product but do not have the money to pay for it all at once, the solution is to apply for Direct Consumer Credit and pay for the product in installments.

Money can be borrowed in a variety of ways, including: installment plan, credit card limit, account limit and pre-approved credit available to the consumer.

However, credit lines are not available to everyone, as each institution carries out a specific analysis. In addition, interest rates and monetary corrections regulated by the Central Bank are always set on the credit.

What is the maximum term for payment of Direct Consumer Credit?

As we have seen, both banks and stores can offer this installment option with interest. Therefore, the longer the payment term, the higher the interest rate.

In general, financial institutions release Direct Credit to Consumers in the form of a pre-approved loan and payment can be made in up to 60 months.

This amount is automatically debited from the customer's current account on the agreed date. In the case of store credit, payment is usually made by means of payment slips and meat.

What is the difference between personal credit and CDC?

In advance, personal credit and CDC are practically the same thing – a type of loan offered by banks in which the customer can use the money as they wish without the need for justification.

However, when we talk about payroll loan There is a notable difference, as the installments are debited directly from the borrower's payroll.

In this case, the debt payment is in the hands of the person responsible for paying the consumer's income. Furthermore, the interest rates charged on CDC or personal credit are much higher when compared to payroll loans.

How to declare Direct Consumer Credit on Income Tax?

How to declare Direct Consumer Credit on Income Tax? | Reproduction: Canva

At first glance, declaring the CDC on your Income Tax is no secret, and it is a very easy procedure. First of all, it is important to mention that loans (without alienation) above R$1,4,500.00 must be declared.

Therefore, when making the declaration, look for the option “Debts and Real Burdens” and select the code 11 – Commercial Banking Establishment.

Then, in the breakdown area, inform the full amount of the loan requested, where the resource was used, what was the payment method (with the number of installments and amounts), nature of the debt with the creditor's details (Name and CNPJ).

Is it worth taking out this type of credit?

Before you start applying for credit in different places, it is important to be aware of the advantages and disadvantages and align them with your consumption goals. Only then will you know whether it is really worth taking out a CDC or not. Okay?

Advantages

With the CDC, the consumer takes possession of the goods immediately, without having to pay the full amount to the store;
The money is credited quickly and automatically, without bureaucracy;
The interest on installments is usually much lower when compared to overdrafts and credit card installments.

Disadvantages

Interest rates are generally higher when compared to savings yields;
IOF (Tax on Financial Transactions) charges apply;
In some cases, the financed asset can be used as collateral for the loan and be taken by the institution if payment is not made.

How to hire CDC?

According to the information presented in the previous topics, we saw that the CDC is granted by banks, financial institutions and department stores.

Therefore, you need to contact one of these intermediaries. Furthermore, in any case, the consumer first undergoes a credit analysis with variations from institution to institution.

On the other hand, Direct Consumer Credit when granted by Banks is offered as pre-approved loan for account holders. If you have been a bank customer for some time, you have probably already seen a pre-approved limit on your account, right?

This, in turn, is the famous CDC of Banks and you can request it at any time. You just need to inform the desired amount, the number of installments to pay off the debt and accept the terms of the contract. The amount is released and debited from your checking account automatically.

The best Direct Consumer Credit options in the Credit Market

The best direct-to-consumer credit options

Well, now that you know exactly what CDB is and how it works, we will present the best options in the Credit Market, with all the information you need to join.

CDC CAIXA

First of all, at Caixa you will find two types of CDC: direct credit and automatic credit.

Initially, Caixa Direct Credit or CDC Salary is only available to customers who receive their salary directly into an account at the institution.

Automatic Credit is the famous pre-approved limit on personal credit available at any time.

CDC Cashier Salary

Amount released	R$300.00 to R$50,000.00
Payment Term	Up to 60 months
Interest Rates	Specials, informed at the time of hiring

CDC Automatic Box

Amount released	R$150.00 to R$30,000.00
Payment Term	Up to 48 months
Interest Rates	Provided at the time of hiring

Bradesco CDC

Bradesco has several types of credit with different purposes, whether it's to buy a good or even to finance plastic surgery!

In this content, we will present one of the bank's main products. CDC Other Goods, ideal for buying a car, furnishing a house or purchasing other consumer goods.

CDC Other Assets

Amount released	Up to 70% of the value of the property
Payment Term	Up to 48 months
Interest Rates	Provided at the time of hiring

Conclusion

Direct Consumer Credit, when used responsibly, is an excellent way to finance consumer goods in easy installments. As we have seen, the procedure is nothing more than the famous personal credit or installment plan on credit.

However, to have the amount released, customers first go through a credit analysis, with different policies and criteria from institution to institution. Therefore, if you want to have access to these payment conditions, you also It is important to have a clean name and a good credit score.

Did you enjoy learning about how the CDC works? To boost your approval, take the opportunity to read this too ➡️Serasa Score: does the Positive Registration help? ⬅️. Click the button below and find out more!

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Consultacred Content Team

By: Consultacred Content Team updated ago 10 months back