Compare No-Deposit Electricity Companies and Energy Plans

What is an electricity plan deposit?

An electricity plan deposit is an upfront payment that your energy provider may require to activate your service. When you sign up for energy in Texas, most light companies run a soft credit check to learn if you meet their credit requirements. Shoppers with bad credit typically have to pay an energy deposit.

The good news: Choose Texas Power partners with no-deposit light companies so you can skip the upfront cost and credit check. Enter your ZIP code to find no-deposit electricity plans in Texas today.

How does a credit check work on Choose Texas Power?

A major benefit of shopping on Choose Texas Power is that we run your credit only once and compare it against every provider on our marketplace. That way, you don’t have to go through the hassle of running your credit multiple times. It’s also a soft credit check, which won’t ding your credit score. But if a credit check isn’t for you, consider no-deposit, prepaid plans, which don’t run your credit at all — call our team to discuss this option, or continue reading to learn more.

How to avoid paying an energy deposit

Energy deposits often equal two months’ worth of power bills, or one-sixth of your total annual energy costs. For many Texans, that upfront expense could cost hundreds, becoming a massive financial burden. Luckily, there are a couple of ways you can avoid paying an energy deposit:

• High credit score: Every provider sets its own credit threshold. Shoppers with a credit score that is high enough to meet the requirements can bypass the upfront deposit.
• Service history: If you’re an existing customer in good standing with an energy company, your fee might be waived. It might be worth calling your provider to request an exception if you have a good track record with the company.
• No delinquencies: You can sometimes avoid a deposit if you have a track record of paying your bills on time.
• Prepaid electricity: This plan type lets you skip the deposit and credit check by prepaying for your electricity.
• Low-deposit plans: Some providers may offer a low-deposit option for shoppers who don’t meet the credit threshold but still want to minimize upfront costs. Call our team to discuss whether a low-deposit plan is right for you.

Payless Power: Our top no-deposit light company

Payless Power is a popular second-chance light company that offers two plans to help you skip the upfront deposit. Here’s what you need to know about these plans:

• Six- or 12-month contract options
• No credit check
• No deposit
• $40 upfront minimum payment
• 30-day satisfaction guarantee
• $49 early termination fee (ETF)
• 26% renewable energy content

Enter your ZIP code on this page or call our team to explore these plans today.

Prepaid electricity: A no-deposit, no-credit-check light plan

The most common type of no-deposit electricity plan is a prepaid plan. Here’s what you need to know about prepaid plans:

• You pay for your electricity in advance every month, before you use it.
• Your provider sets a minimum prepayment amount.
• Payments go directly toward your electricity costs.
• You’ll receive usage alerts and top off your account if it gets low.
• Any remaining balance will roll over to the next month.
• Prepaid plans work best for shoppers with low credit who want to avoid a credit check and deposit.

Is a no-deposit plan right for me?

Before signing up for a no-deposit plan in Texas, consider the following benefits and drawbacks to determine if it’s a good fit.

Pros of no-deposit electricity plans

• More cash on hand: With a no-deposit electricity plan, you don’t have to tie up cash in a security deposit. The money you pay goes directly toward your home’s electricity.
• No credit checks: Prepaid, no-deposit plans often do not require credit checks. They can be a good option if you have a low credit score or simply want to avoid the check.
• Bill control: Pay-as-you-go service helps you control your energy usage to avoid overspending. Monitor and adjust your usage to keep your monthly charges where you want them.

Cons of no-deposit electricity plans

• Upfront costs are still required: Although it’s not considered a deposit, you have to pay for a portion of your electricity in advance with a prepaid plan. This requirement may not apply if you fall into a high credit bracket for a fixed-rate plan.
• Automatic shut-offs: Many no-deposit electricity plans are prepaid, meaning you pay for your energy in advance. If your balance runs low and you use more electricity than you paid for, your service could be shut off until you add more money.
• Higher rates: No-deposit plans typically have higher electricity rates than traditional fixed-rate plans. While choosing a no-deposit light company may save you money in the short term, your overall energy cost will likely go up.

Choose Texas Power’s take on no-deposit plans

No-deposit electricity plans are not the best option for most energy shoppers. Despite saving money upfront, no-deposit plans often have higher rates, resulting in higher overall energy costs. However, for some shoppers, this trade-off might be worth it if you can’t afford the deposit and your current contract is up.

Prepaid electricity plans work best for shoppers who can’t swing a costly energy deposit. Whether you have bad credit or are on a tight budget, a prepaid electricity plan can help you get the lights on if you don’t reach other providers’ credit limit.

Postpaid plans work best for most other shoppers who can afford the energy deposit or have good credit. With postpaid plans, you’ll enjoy a wider range of options and long-term affordability.

No-deposit energy plans in Texas

Texas residents in many deregulated cities can shop for no-deposit, no-credit-check power plans on our marketplace. Explore our top options for several Texas utility companies.

CenterPoint Energy serves the Houston metropolitan area and surrounding towns, including Pasadena, Baytown, Sugar Land, Pearland, Katy, Galveston, and The Woodlands. Residents in these cities can choose a no-deposit electricity provider.

Oncor Electric Delivery transports power to residents in Dallas, Fort Worth, Frisco, Irving, Duncanville, McKinney, and Grapevine. Shoppers in these areas who want to skip a deposit can shop prepaid plans on our marketplace.

AEP Texas Central serves customers in southern and central Texas, including Corpus Christi, McAllen, Harlingen, Victoria, and Laredo. Explore no-deposit plans in these areas.

Residents in northern Texas, including Abilene and San Angelo, receive electricity from AEP Texas North and can compare no-deposit plans on Choose Texas Power.

Communities around the Gulf Coast and West Texas, including Texas City, Friendswood, Dickinson, League City, and Lewisville, can compare no-deposit plans on our marketplace. Residents in these areas receive their electricity from Texas-New Mexico Power regardless of which provider they choose.

No-deposit electricity plans FAQs

What’s the best light company for no deposit?

Payless Power is one of the best light companies for no deposit on Choose Texas Power. This provider offers two plans that help you skip the deposit and credit check.

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

Prepaid, no-deposit plans do not usually require credit checks. For instance, Payless Power does not run credit checks for its no-deposit electricity plans, though this varies by provider.

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

It depends on which provider and plan you choose. Payless Power’s prepaid options require a contract to lock in your electricity rate for six or 12 months. The contract includes an ETF of $49 if you cancel before it expires.

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

You may be able to transfer your no-deposit service to a new address. The first step is to check whether your no-deposit light company offers service in your new location. If it does, you’ll need to contact the provider to transfer your service. If you’re moving outside your provider’s service area, you’ll need to switch energy plans.

Is a no-deposit light plan right for me?

No-deposit lights could be right for you if you have low credit and need a quick energy solution. Call the number on your screen to speak with a member of our team. They can help answer your questions, explore cheap electricity options with no deposit, and match you with the best fit.

What happens if I don’t use all the money I prepaid with?

In this scenario, your remaining balance usually stays on your account and rolls over to the next month. However, make sure to read your plan’s Electricity Facts Label (EFL) to confirm the provider’s policy.