What is a no deposit electricity plan?

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Are there no deposit electricity plans?

Having less-than-perfect credit often means you must pay a deposit to sign up for electricity service. But ChooseEnergy.com’s providers offer a variety of no deposit plans to help you establish service.

Make no mistake: Credit checks can be scary. But there are two reasons you shouldn’t worry when ChooseEnergy.com asks to run a credit check before signing you up for service:

  • Our unique Universal Credit Check: When ChooseEnergy runs a credit check, it checks on behalf of all our providers, not just one. That means we know immediately which retail electricity providers will require you to pay a deposit – and which won’t.
  • No deposit electricity plans: Many providers we work with have no deposit options; we’ll be happy to find them and help you sign up.

Why do you run a credit check?

Let’s back up a little to answer the question of why ChooseEnergy.com runs a credit check for energy customers.  It’s to determine whether you’ll have to put up a deposit to get service – and how large that deposit will be. Energy customers with good credit get more favorable terms than those who don’t.

Choose Energy works with a number of providers in deregulated states, and each has its own standards for deposits. That’s why we run soft credit checks – ones that won’t hurt your credit – on all providers whenever we run one for any provider.

One thing to remember: Deposits aren’t forever. They are refundable and should be returned with interest – if your account is in good standing – when you end your service with a provider or, in some cases, once you’ve established a good payment record.

What if I don’t want to pay a deposit?

First off, know that you aren’t alone. By some estimates, at least half of electricity customers in deregulated states are told they must pay a deposit up front before receiving service. But don’t worry – there can be alternatives.

The most common forms no deposit electricity plans are pre-paid plans. In these plans, customers pay a monthly fee up front for service – but not a deposit. The payment is put toward the customer’s service for that month.

The customer then receives regular updates about his or her electricity usage, and if the usage approaches the amount already paid for, the customer is asked to pay in advance for more electricity.

One thing you should know: Rates for pre-paid plans generally are a bit higher than those for standard plans.

What’s the next step?

Enter your ZIP above to see plans available in your area and shop for one that appeals for you. Choose Energy will tell you whether a deposit is required and outline your options if you don’t want to pay it.