No Deposit Electricity

Texas buys electricity in a different way. After deregulation, things changed in Texas. Option of no deposit electricity is easily available in Texas that made the life easy for customers who do not want to pay heavy deposits or who have bad credit issues.

Power companies, like other businesses, usually work for their own benefit. But, with deregulation comes the competition. Because of this competition companies had no choice other than passing on the benefits to their customers to keep ahead of competitors.

What is no deposit electricity?

When you buy electricity with any electricity company you have to go through a credit check. A credit check is required to know your credit score and also to know if you can pay for the electricity that you consume.

Electricity companies require some credit requirements to give you the required connection. If you do not match their requirement or fall short then you will have to pay some deposit to get the connection.

This deposit is usually returned after a certain period of time. If your account is active and in good standing for a certain period of time then there are chances that you will get your deposit back. Anyhow, paying a big amount in deposit to get the connection can impact your savings and monthly domestic budget.

There are some companies that do not take deposit. Thus the electricity that you get without paying any deposit is called as no deposit electricity. These no deposit plans are also the prepaid plans.

How does no deposit electricity plan works?

These are very simple plans. To avail this service you do not have to go through any credit check. These are like the prepaid plans offered by your cellular companies. You pay a certain amount and can use electricity until that amount is exhausted. After that you pay for the next period in advance.

There is no risk involved for the electricity provider. You pay in advance for the electricity you will consume. As there is no major risk associated the companies do not require any hefty deposits before giving you the connection.

 

 

Can I switch to no deposit plan today?

You can switch to any no deposit electricity plan anytime you want to. It requires a simple phone call. You can call 1-877-908-2054 or book no deposit electricity online. Smart meters made it possible to switch to any other electricity provider anytime.

What is the cancellation fee?

There is no cancellation fee. If you want to switch to some other electric company you can do it anytime. As there is no contract or deposit there is no cancellation fee.

How do I know if no deposit is good for me?

It all depends on your credit ratings, consumption, requirements and many other factors. If you are facing a bad credit then no deposit electricity is the best option. Usually these plans are not cheaper. With long term fixed rate plans you get better discounts and cheap rates. Therefore it is usually cost effective with long term fixed rates plans if you have a very good credit score. But, again it depends on how these plans match your requirement.

You can visit electricity rate comparison websites  to know the best plans available today. All the major companies with their plans are available to compare and buy electricity.