About no deposit plans
No deposit electricity plans are just that – they do not require a deposit upfront. Consumers with bad credit are frequently required to pay a deposit when they sign up for an electricity plan. Some experts estimate nearly half of all consumers in deregulated areas are required to pay a deposit before receiving service.
Choose Texas Power works with Texas retail electricity providers (REPs), some of which offer no deposit options. No deposit plans can be helpful for consumers who wish to avoid a credit check or who don’t have the funds to pay a deposit upfront.
To see available plans in your area, enter your ZIP code above. From there, you can filter your options to see only plans that interest you. If you are interested in learning more about the types of plans and no deposit plans specifically, continue reading below or see our Plan Guide.
Types of no deposit plans
Prepaid plans: The most common form of no deposit plan is a prepaid electricity plan. With prepaid plans, customers will pay for their electricity upfront. This money goes directly towards providing electricity to your home – making it different from a deposit.
With a prepaid energy plan, consumers will receive notifications about their electricity usage. When a customer’s usage nears the amount they have paid for, they will be required to pay upfront for more electricity. These are also called pay-as-you-go electricity plans.
High credit scores: There is also the potential for customers with high credit scores to be exempt from deposits. While this will require a credit check, these customers will be able to avoid paying a deposit. We will take you through this process when you enter your ZIP code above and let you know if you qualify.
Is a no deposit plan right for me?
It depends on your financial situation and the type of no deposit plan you are interested in. Before signing up for a no deposit plan, consider the following pros and cons.
Pros of no deposit plans
- No deposits. The money you pay goes directly towards providing electric service to your home.
- No credit checks. Prepaid no deposit plans do not require credit checks, making them a good option for customers with bad credit or those who wish to avoid a credit check.
- Bill control. The most common type of no deposit plan is a prepaid plan, which gives you the ultimate control over how much you spend on your bills. Pay-as-you-go plans are ideal for consumers who wish to maintain control over how much they pay.
- No contracts. No deposit plans that are paid upfront (prepaid or pay-as-you-go) do not require contracts and can be cancelled on short notice without early termination fees.
Cons of no deposit plans
- Upfront costs. Although it is not considered a deposit, customers will likely need to pay for their electricity upfront if they choose a prepaid no deposit plan. If you fall into a high-credit no deposit bucket for a postpaid plan, this does not apply to you.
- Automatic shutoffs. Many no deposit plans are prepaid or require frequent payments throughout the month. This means if you reach the threshold of electricity you paid for, your service will automatically be disconnected. Service will be reconnected when you add more money to your account.
- Higher rates. Some no deposit plans may have higher rates than other plans. While a no deposit plan is a good option for immediate service, it may mean paying more in the long run.
No deposit electric companies
Not all retail electricity providers (REPs) offer no deposit plans. In the Choose Texas Power marketplace, customers interested in no deposit options should see First Choice Power and Payless Power, both of which offer pay-as-you-go and prepaid plans. Or, if you know you have good credit, select the provider of your choice and we’ll let you know if they require a deposit.
If you are interested in a no deposit electricity plan, enter your ZIP code above to see plans available in your area. You can filter for prepaid and pay-as-you-go options. If you aren’t sure what type of plan is best for you, call one of our energy experts for more guidance.