When applying for a loan or other type of credit, lenders often ask for proof of income and a copy of your most recent utility bills. But what exactly constitutes a ‘utility bill? To know more about utility bills, find more information here.
Considered as Utility Bills
Generally speaking, it includes any type of expense related to the upkeep and use of your home or place of business, including:
Electricity
This is probably the most common type of utility bill. It covers the cost of electricity used in the building. In the UK, electricity bills are usually issued quarterly.
Gas and oil bills
These cover the cost of gas or oil used for heating, lighting and cooking in your home.
Water and sewerage
This covers the cost of water and sewage services. In many countries, water is billed on a monthly basis.
Telephone/internet bill
This includes any charges for phone lines and internet access. Some providers combine both into one bill.
TV license fees
These are fees paid for access to television services, such as cable or satellite TV. They are typically paid annually or bi-annually.
Not Considered Utility Bills
Now that you know which bills count, there are also some that do not. Some examples include:
Vehicle tax and insurance
This covers the cost of your car tax and any vehicle insurance you may have. These are not considered utility bills as they are for personal expenses rather than household costs.
Mortgage payments or rent
These cover the cost of buying or renting a property, which is considered a form of investment rather than a utility bill.
Council tax
This is a local tax levied by councils on residential properties. It can be used to pay for services such as rubbish collection, street cleaning and libraries in your area but it isn’t considered an essential household expense so it doesn’t count as a utility bill.
Insurance Premiums
These typically include home insurance premiums and other insurance policies. They are not considered utility bills as they do not cover essential household costs.
When is a Utility Bill Needed?
Utility bills also have other purposes aside from letting you know your dues. It can also be used as proof of address when opening a bank account or applying for benefits. Lenders and utility companies may also require you to provide a copy of your bill if you need to register with them or have applied for a loan.
It’s important to remember that not all bills are considered utility bills, so make sure you know what counts and what doesn’t before submitting any documents. With this knowledge, you’ll be able to correctly identify the types of bills that count as valid evidence when needed.
FAQs About Utility Bills
Q: What is an example of a utility bill?
A: Examples of utility bills include electricity, gas, water, sewage and telephone/internet charges.
Q: Is rent considered a utility bill?
A: No, rent is not considered a utility bill as it does not cover essential household costs.
Q: Do insurance premiums count as a utility bill?
A: No, insurance premiums are not considered utility bills as they do not cover essential household costs.
Q: When would I need to provide proof of my most recent utility bill?
A: You may be asked to provide proof of your most recent utility bill when applying for credit or registering with a lender or utility company. It can also be used as proof of address when opening a bank account or applying for benefits.
Q: What counts as a valid utility bill?
A: A valid utility bill must be an invoice issued by the provider, such as electricity, gas, water and sewage companies. It should include your name and address as well as the amount due for each service.
Q: Can I use a screenshot of my utility bill instead of submitting the original document?
A: Generally speaking, screenshots or printed copies are not accepted as valid proof of your utility bills. You will need to submit the official invoice from your provider in order to have it count.
Conclusion
In summary, utility bills are any type of expenses related to the upkeep and use of your home or place of business including electricity, gas and oil bills, water and sewerage, telephone/internet bill, TV license fees etc.
Other expenses such as vehicle tax and insurance payments, mortgage payments or rent, council tax or insurance premiums are not classified as utility bills. It is important to keep this in mind when applying for a loan or other type of credit so that you can provide the lender with adequate proof of income.
