2 Companies That Offer No Deposit Electricity in Houston
One cost that we often forget about during a move is the electricity deposit.
According to Rent.com, the deposit can cost you anywhere from $100 to $250. Money that you may need to allocate to other things.
Good thing for you is there is a solution. It’s not perfect, but it could be a potential temporary fix while you get your finances in order.
In this article I will provide you with 2 companies who offer no cost deposits to Houston as well as the pros and cons of these programs.
- Why Do Electricity Companies Typically Charge You A Deposit Fee?
- How Are Electricity Deposits Calculated?
- If You Have Bad Credit There Is Hope For Getting Electricity
- What Is A No Deposit Electricity Plan?
- How No Deposit Electricity Plans Work
- 2 No Deposit Electricity Companies in Houston
Why Do Electricity Companies Typically Charge You A Deposit Fee?
You are charged a deposit fee because electricity is a service that you will use first and then be billed for that usage at the end of the month.
The deposit is a good faith pledge to pay for the electricity that you’ve used at the end of the month. If you don’t pay for the electricity that you’ve used the utility company keeps your deposit.
How Are Electricity Deposits Calculated?
The cost of your electricity deposit is related to your credit.
Good credit is an indicator to companies that you finances are stable and you will likely pay your bills on time. When your credit tanks this gives the opposite impression….
Companies will still provide you with utilities services although you’ll pay the higher end of that $100 – $250 range for an electricity deposit.
To make things crystal clear, when your credit is bad you will pay a more expensive electricity deposit.
If You Have Bad Credit There Is Hope For Getting Electricity
First off there is nothing to be ashamed of if you have bad credit, in fact…
56% of Americans reported to having bad credit scores in a 2015 report.
Just because everyone is doing it doesn’t mean you should continue trudging through life with janky credit! Take steps to improve your poor credit as soon as possible, but that’s for another article.
If you have a poor credit history, no deposit electricity plans may be a solution, because they were created to help people in similar situations to you.
What Is A No Deposit Electricity Plan?
Remember earlier when I told you that typically electricity plans bill you at the end of the month?
Well no deposit utility plans are different because they bill you first and then you get to use the electricity. Some people also refer to these as “prepaid electricity plans”.
With these plans you only pay for your electricity usage, no added fees like the deposit we’re trying to avoid in the article.
How No Deposit Electricity Plans Work
Plans differ from provider to provider but here is a general idea of how they work.
- Find an electricity provider in Houston and create an account
- Once you are registered you will need to load funds to your account. These prepaid funds can rage between $30 and $70 to get started.
- You provider will send daily alerts to your phone or email to let you know what your usage is and how much money is left in your account.
- At the end of the month view your usage and at more money to your account.
Before wrapping up this section, I want to mention three things regarding no deposit electricity plans that may impact your decision to sign up.
- These plans can be more expensive than the regular plans. Their prices may also fluctuate more.
- Pre-paid electricity plans are not available to critical care or chronic condition customers. This means that if you have a serious medical condition that requires an electric medical device or heating/cooling equipment to prevent a medical emergency, you should not be signing up for one of these plans.
- Once your account balance reaches $0, your power will be cut off. This has even happened to some people during extreme weather like freezes.
2 No Deposit Electricity Companies in Houston
Below you will find 2 light companies in Houston with no deposit necessary needed upon sign up.
Choose Energy is a company that compares the costs of multiple providers and then shows you the best plans on electricity in Houston.
To find a no deposit electricity plan with Choose all you need to do is type in your zip code and they will present you with multiple utility providers. Choose will tell you which companies offer the no deposit electricity plans in Houston.
For more information about Choose you can contact them at 855.419.3586 or visit their website.
Another company that offers pre-paid electricity plans to Houston is called Payless Power.
After a quick comparison of energy plans in Houston, it seems to be that Choose Energy has cheaper rates, however, Payless Power provides you with another option for these plans.
Like Choose Energy, Payless Power should also be considered because you can enroll today, regardless of your income or credit history. If you’ve got $30 to $60 to add to your account you can enroll in a plan.
For more information about this no credit check electricity company in Houston you can call them at 866.963.9353 or visit their website.
No deposit electricity plans come with both pros and cons.
The pros of these plans include; no credit check, no deposit needed and you can have your electricity turned on today.
The cons are prices are typically more expensive, prices fluctuate, individuals with some medical conditions can not apply and your power can be cut off anytime. Even in a winter storm.
If you are able to enroll in a regular utility plan it’s definitely a better option, however, it’s also understandable if you temporarily need a no deposit electricity plan.
Nick Bryant is a Counselor with 11 years of experience working in community health. He enjoys concerts, walks with the doggo and wife, mocking Dallas Cowboy fans, and sharing community resources. Jump on the Houston Case Managers email list to receive weekly community resource guides delivered directly to your inbox.