A Brief Guide To No Deposit Electricity In Texas

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As the name suggests, no deposit electricity is an energy plan feature that allows clients not to pay the traditional upfront fee – a cost that could be several hundred dollars – to get service.

No deposit electricity plans are often a prepaid electricity component where customers pay up an initial amount for energy and use it until they have exhausted the limit of the initial payment. And while most electricity providers in Texas offer these services, some will need that a customer meets a certain threshold to get no deposit electricity. Requirements may include the duration that an individual has signed up for service, the ability of the customer to keep up with needed payments and the frequency of late payments made – if any.


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In Texas, there are several options when it comes to no deposit companies, and most of them even offer incentives to attract clients into signing up for plans.

Credit checks for electric service

A majority of electricity companies need new clients to take part in a credit check or pay a certain amount as deposit before starting service. It’s more or less the same approach as what the cable, phone, and other utility services use to sign up new clients. There are numerous reasons why utility companies perform credit checks, but the two main ones include switching providers and moving to a new residence. When a person moves to a deregulated area, like Texas, they’ll need to set up their electricity with a new electricity supplier – so they have to apply for the services. As part of the process, the service provider will need to gauge the client’s credit history. If the client lacks a credit history or has a poor one, they may have a hard time getting electric services.

No deposit electricity

As stated earlier, the no deposit plan lets a client sign up for electricity services without deposit. This option also allows one to get the services without a binding contract and credit check. What this means for those with bad credit is that they won’t have to pay hundreds of dollars beforehand to get electricity services. When one qualifies for no deposit (and even when they don’t), they are needed to sign up for a prepaid electricity plan.

Benefits of a no deposit electric plan

No initial fee: with this plan, consumers get to pick what they pay – that’s flexibility. It also negates the need for one having to pay a substantial amount at the end of the month.

No credit check: many providers don’t perform credit checks to approve consumers for these services. The no deposit option takes away any possible obstruction to getting electricity and ensures clients, irrespective of their credit history, qualifies for instant access to power.

No deposit necessary: the no deposit option allows clients to forgo the expense of paying an upfront fee that’s usually a high cost. This means more money in consumers’ pockets, giving them a chance to pay only for the services they get.

Options for getting no deposit electricity

A while back, bad credit meant paying a considerable amount of initial fee to receive electricity services. Consumers had no other way around this – the deposits were big. It was a whole lot of stress until one changed providers or moved houses. But that’s not the case anymore. Today, even consumers with bad credits can still have access to electricity – without breaking the bank – with these three options for no deposit electricity:

Pick a traditional power plan from any electric provider: This is where one picks and enrolls to any electricity plan, to try to determine whether they will be accepted without the need to pay a deposit.

Enrolling with a provider with lower credit requirements: When the first option fails, then consumers can try finding a traditional plan from an electricity service with lower credit requirements, like TXU. Such providers have a large client base that diminishes their overall customer credit risk, so they have no issue accepting lower credit scores.

Prepaid electricity plan: the third and last option is for one to settle with a prepaid plan – where they pay for the services they need. Prepaid services, as explained above, work as utility services, or debit card – no deposit, no credit checks required. All one has to do is create an account and deposit money to it. But in this case, they get to use the money to pay for the electric services in real-time.

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