No-Deposit Electricity: How to Qualify—and What to Do If You Don’t
by Mike Strayer | November 10, 2017
You may have noticed a lot of electric companies in Texas brag about no-deposit electricity. This sounds great on the surface, but their boasts are usually all hat and no cattle. What they usually don’t tell you is sometimes folks don’t qualify. To help make sense of all this, we’re here to give you the skinny on no-deposit electricity and inform you of the options that are available when a deposit is required.
Although some electric companies oversell the idea, it’s still worth noting a lot of electric customers don’t have to pay a deposit at all. Why is that the case? In a nutshell, it all comes down to two key factors—your payment history and your credit history. For example, here are three of the most important credit-related indicators that are used to qualify you for $0 down electricity:
- You’ve signed up for electric service within the last two years
- Your electric account isn’t currently in delinquent status
- You haven’t made a late payment more than once over the course of the last year
- You’re 65 or older and aren’t currently past due on any electric bill
- You’ve been legally designated a victim of family violence
- You’re medically indigent (i.e. folks who can’t afford health insurance but aren’t eligible for government health care)
- You secure a “letter of guarantee” from a customer currently in good standing with a Retail Electric Provider (more below)
- Unsafe or deficient equipment
- Failure to pay for similar utility services
- Failure to meet the terms stipulated in a letter of guarantee
- Failure to pay tariffs for nonstandard equipment
PRO TIP: Before paying a deposit, see if your REP offers payment plans—it could save you cash upfront.The short answer is yes. Lots of our customers qualify for no-deposit electricity, and it’s easy to find out if you qualify.