What No Deposit Electric Choice is the Best Option?

by admin on March 10, 2009

Credit Check Process

When trying to sign up for residential Texas electricity service with the main goal being to avoid a deposit you only have a few different options. Unfortunately you can’t find out ahead of time from most providers if they will need a deposit because they need to first check your credit. Some Texas electric companies have this credit check process automated. You enter your name and address and some additional information like social security number or drivers license number and they quickly check an online database to see if you pass their credit threshold.

Credit Scores and Passing Credit for Electric Service

An electric provider may have a policy that anyone that is between 550 – 600 in a credit score must pay $200. A different electric provider may want $300 and yet a 3rd provider may want as much as $500 – $700 as an upfront deposit amount in order to turn on your Texas electric service without paying a deposit. These same Texas energy providers may have a completely different set of criteria if you are between 650 – 750 on your average credit score. In this scenario half of the electricity providers might pass you on credit without the need to pay a deposit while the other half will still want at least $100 as a deposit amount unless your score is over 700.

Sign up First and See if a Deposit is Needed

Unfortunately you have to sign up for their Texas electricity service first before these electric companies can tell you if they will need a deposit. If you already know your credit is terrible and you already know that you do not wish to pay a $200 or more deposit amount there are a few other options to avoid a deposit. You can sign up with a prepaid electricity provider. This company will come out to your facility, home or apartment and install a prepaid electricity meter. You then charge up a card to prepay for electric service and they then allow the electricity to be delivered to your home. The issue is that many people have complained that the prepaid Texas electricity prices are too high and if late on a bill the prepaid company will turn off electric service too soon before proper notice has been given.

Is Prepaid Electricity Service a Good Option?

A different choice besides going the prepaid electric service route is to sign up on a no deposit guaranteed electricity provider. By choosing a no deposit electric company you can reestablish yourself as a reliable electricity customer that pays their bill on time. The rate is a little higher then normal the first 3 months but if you pay your bill on time the first 3 months the no deposit Texas electricity company will proactively lower the electricity rate to their lowest available choice. The trick is to conserve energy those first three months as you establish yourself as a good paying customer. Even though the electric rate is a little higher it will not be that bad if you try not to use that much energy those first 3 months. After your rate has been lowered to the lowest electricity rate plan your rate is affordable enough to not have to worry about conserving energy as much and you can feel secure that you are on a Texas electricity rate that is low like someone with a good credit score. This no deposit guaranteed choice is basically a second chance for those with no credit or less then perfect credit.

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