What is a no-deposit electricity plan?

For business

Are there no-deposit electricity plans?

Having bad credit often means you’re required to pay a deposit to sign up for electricity service. But Choose Energy’s marketplace includes cheap no-deposit plans for those whose credit score has room for improvement.

Choose Energy partners with trusted and reliable energy providers in deregulated areas. Many of these providers offer no-deposit plans. For example, Payless Power provides a zero-deposit electricity plan option for customers with a poor credit score.

Here’s why it matters: Reports indicate residential electricity use is soaring since Texans have been under stay-at-home orders. Bills likely will soar as well. That means it could be a great time to shop for new energy plans with lower Texas electricity rates. Enter your ZIP code to see what’s available in your area. Remember, most Texans can switch electricity plans without a visit from a technician.

Looking for the best energy deals? Some providers may offer electricity promotions, but the plan itself may not be the best fit for you. If you’re searching for the cheapest option, we suggest considering a no-deposit plan.

The bottom line: We always have no-deposit electricity plans available.

Interested in learning more? Enter your ZIP code above to find cheap no-deposit energy plans available in your area!

Why does Choose Energy run a credit check?

To find the right plan for you, Choose Energy runs a soft credit check. This is to determine whether you’ll have to provide 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 many providers, and each provider has its own standards for deposits. This is why we run soft credit checks – the kind that won’t hurt your credit – for all providers whenever we run one for a single 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.

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

  • Our unique Universal Credit Check:When Choose Energy runs a credit check, it checks on behalf of all our providers, not just one. This means we know immediately which retail electricity providers will require a deposit – and which won’t.
  • No deposit electricity plans: Many providers we work with have no-deposit options; we’ll find them for you and help you sign up for the plan that fits your energy needs.

Cheap no-deposit electricity plans

If you’re trying to avoid a deposit, you aren’t alone. By some estimates, at least half of electricity customers in deregulated states are required to pay a deposit before receiving service. But don’t worry – you have other options.

The most common form of no-deposit electricity plans are pre-paid plans. With these plans, customers pay a monthly fee upfront 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 can be a bit higher than those for standard plans.

So, what’s the next step?

Enter your ZIP code above to see available plans in your area. Once you find a plan that you like, Choose Energy will tell you whether a deposit is required and outline your options if you don’t want to pay it.