About no-deposit plans

When signing up for a new electricity provider, it’s common for many Texas companies to require an upfront security deposit. However, for those who don’t want to pay a deposit, there are no-deposit electric plans available to sign up for instead, where you can start your service immediately. 

Providers will typically run a soft credit check in order to determine whether you owe a deposit based on your consumer credit score or utility payment history. These deposits are typically returned after 12 months of on-time payments, but some customers may prefer to avoid the process of a credit check and making a security deposit altogether with a no-deposit electricity plan. These plans usually allow you to pay for electricity in advance or avoid a security deposit in other ways.

Rather than endlessly searching the web for light companies with no deposit, you can simply use Choose Texas Power to easily compare and sign up for no-deposit electricity plans in one place. Enter your ZIP code to explore no-deposit electricity companies in Texas.

Ways to avoid deposits

Electricity bill deposits can cost up to one-sixth of the amount of your annual electric bill or two months’ worth of service. For many Texas customers, that amount could be $350 or more. No-deposit electricity companies in Texas can help you avoid spending hundreds of dollars on an electricity deposit before your service even begins.

To qualify a customer for a no-deposit plan, electricity companies consider:

• Past customers: If you’ve been a customer of an electricity rep within the past two years, you could avoid a deposit with the same company.
• No delinquencies: You can typically only avoid deposits if there are no delinquent notes on previous electric accounts. 
• Payment history: With a satisfactory payment history, you may be able to avoid paying a deposit.
• Prepaid plans: When you prepay for electricity with some no-deposit light companies, you can avoid a deposit.

Types of no-deposit plans

If you’re looking for a light company with no deposit requirements, you’ll often find two options: prepaid or no-deposit plans for high credit scores.

Prepaid plans

The most common type of no-deposit electricity plan is a prepaid plan. With prepaid plans, you pay for your electricity beforehand. Unlike a deposit, which doesn’t cover your electricity usage, payments on a prepaid plan go directly toward your electricity costs.

With prepaid energy plans, also known as pay-as-you-go electricity plans, you’ll receive notifications about your energy usage. When your usage nears the amount you’ve put down, you

No-deposit plans for high credit scores

Many electric companies offer no-deposit plans to customers who meet their credit score threshold. These plans require a credit check, and you can begin service without a deposit if you qualify. 

Curious if you qualify for a light company with no-deposit plans? Enter your ZIP code on Choose Texas Power to compare no-deposit electricity plans and learn whether you qualify.

Is a no-deposit plan right for me?

Many electricity companies have no-deposit plans, but they don’t suit everyone. Before signing up for a plan with a no-deposit electricity company in Texas, consider the following benefits and drawbacks.

Pros of no-deposit plans

• No deposits: You don’t have to tie up cash in a security deposit. The money you pay on a no-deposit plan goes directly toward your home’s electric service costs.
• No credit checks: Prepaid no-deposit plans don’t require credit checks, making them a good option for customers with low credit scores or those who want to avoid a credit check altogether.
• Bill control: Under a prepaid plan, you have control over how much you spend on electricity bills. Pay-as-you-go plans are ideal for customers who wish to control electricity usage and expenses.
• No contracts: Because you pay upfront, no-deposit plans don’t require contracts, meaning you can cancel anytime without incurring early termination fees (ETFs).

Cons of no-deposit plans

• Upfront costs: Although it’s not considered a deposit, you’ll likely need to pay for your electricity upfront if you choose a prepaid plan. This requirement may not apply if you fall into a high credit bracket with no-deposit options.
• Automatic shut-offs: Many no-deposit electricity plans are prepaid or require frequent monthly payments. If you use up the electricity you paid for, your service could automatically be disconnected until you add more money to your account.
• Higher rates: Some no-deposit plans have higher electricity rates than other plans. While choosing an electricity company for a no-deposit plan can be a good option for immediate service, it may cost 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 electricity in Texas can explore offerings from companies like Payless Power. Or, if you have a high credit score, you can select the provider of your choice, and we’ll let you know if it requires a deposit. Note that credit score criteria can vary by provider, so you can also compare plan offerings for your credit score. 

To explore no-deposit options, enter your ZIP code and filter for “all credit approved” to find plans in your area. If you aren’t sure what type of plan is best for you, call one of our energy experts for more guidance.

No-deposit electricity plan FAQs

Does a no-deposit energy plan require a credit check?

It depends on the type of no-deposit electricity plan you choose. Prepaid electricity plans don’t require a credit check since you pay for your electricity before you use it. However, If you have a high credit score, you may qualify for a no-deposit plan after passing the credit check. 

Do I have to sign a contract for a no-deposit plan?

Prepaid electricity plans are typically organized on a month-to-month basis without a contract. You’ll likely sign a contract if you get a no-deposit plan with a high credit score because these plans are usually fixed-rate options.

How quickly can I begin service under a no-deposit plan?

Many no-deposit providers offer same-day setup, especially if you have a smart meter, which most Texas homes do. Smart meters allow providers to set up your service remotely, removing the need for a technician to visit your home or business.

Can I transfer my no-deposit plan to a new address if I move?

The first step is to check whether your no-deposit light company offers service where you’re moving. If it does, you’ll need to contact them ahead of time to arrange to move your service. If you’re moving outside the service area of your energy provider, you’ll need to choose a new electricity plan.

My power went out. What should I do next?

When your power goes out, you should always contact your utility company rather than your no-deposit energy provider. Your utility company is assigned to you based on where you live, and it takes care of power infrastructure and delivers electricity to your home. Utilities are also responsible for responding to power outages.