No-Deposit Electricity Plans
Deregulation resources

About no-deposit plans

When you establish service with a new electricity provider, it’s not uncommon for the company to require an upfront security deposit. Your provider will typically run a credit check, and if you don’t meet its minimum credit score requirements, you may have to put down a deposit as insurance in case you fall behind on your bills.

That doesn’t mean you’re out of luck if you don’t meet the credit threshold or want to avoid the credit check and deposit entirely. Some light companies offer no-deposit options where you only pay for the energy you use.

The Choose Texas Power marketplace makes it easy to find light companies with no-deposit plans in Texas. Enter your ZIP code to start comparing your options or read on to learn more about these plans.

Types of no-deposit plans

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

Prepaid plans

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

With a prepaid energy plan, you’ll receive notifications about your energy usage. When your usage nears the amount you’ve paid for, you will need to add more funds to your account to continue your electricity service. These are also known as pay-as-you-go electricity plans, and they ensure you only pay for the energy you consume. You don’t have to spend additional money to begin your service.

High credit scores

Many electricity companies offer no-deposit plans to customers that 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 no-deposit plan? Enter your ZIP code, and Choose Texas Power can help you find out.

Is a no-deposit plan right for me?

Many light 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: The money you pay to the light company on a no-deposit plan goes directly toward your home’s electric service costs. You don’t have to tie up valuable funds in a security deposit.
  • 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 absolute control over how much you spend on electricity bills. Pay-as-you-go plans are ideal for customers who wish to pay for the exact amount of electricity they use.
  • No contracts: Because you pay for them up front, no-deposit plans don’t require contracts, meaning you can cancel anytime without incurring early termination fees.

Cons of no-deposit plans

  • Upfront costs: Although it’s not considered a deposit, you’ll likely need to pay for your electricity up front if you choose a prepaid plan. This requirement may not apply if you fall into a high-credit bracket for a light company with no-deposit options.
  • Automatic shutoffs: Many no-deposit 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 a light company for a no-deposit plan can be 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 electricity companies in Texas can explore offerings from companies like Payless Power. Or, if you have a high credit score, select the provider of your choice, and we’ll let you know if it requires a deposit. 

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?

If you sign up for a prepaid no-deposit plan, Choose Texas Power does not need to run a credit check. However, we will need to run a soft credit check if you’d like to see if you qualify for other plans.

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

Most no-deposit plans are month-to-month, meaning you do not need to sign a long-term contract and can easily switch to another energy plan. Check the contract terms in your plan to find the most accurate information about term length and early termination fees. 

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

Several energy providers that offer no-deposit plans can provide same-day connections. Most Texas homes have smart meters, so you won’t need to schedule a technician visit for service to begin, and your provider can bring your home online remotely.

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

If you are moving to a new home, contact your no-deposit light company directly to discuss whether it operates in your new area. If it does, you can ask about transferring your plan. Otherwise, you can use the Choose Texas Power marketplace to find another light company with no-deposit plans.

My power went out. What should I do next?

In the event of a power outage, you should always contact your utility company. Your utility is different from your electric provider and is based on your location. It is responsible for maintaining electrical infrastructure and restoring power during an outage. Visit our utilities page for a detailed list of Texas utility companies and how to contact them.

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