The deregulation changed the way Texans buy electricity. In fact, it changed the entire energy market – but for better. Now, the residents can get their hands on same day electricity services – with no credit checks, thanks to the no deposit electricity option available in the state.
The no deposit option that’s easily accessible in Texas not only makes it easy for consumers who don’t want to pay heavy deposits, but also for those who have a bad credit history or no credit history, to begin with.
Electricity providers – like any other businesses in the market – are often concerned about their company’s bottom line. But with deregulation comes competition. And thanks to this competition, electricity providers have no option but pass down the benefits to their clients to stay ahead of the curve.
Understanding how deposit works
When you purchase electricity from a provider, they’ll need to perform a credit check on you to determine your creditworthiness and ability to pay for the energy that you consume. These providers need some credit requirements to connect you to the grid. However, if you fail to match their requirement, you will need to pay a certain amount before connection (called deposit). Power companies often refund the deposit after some time – but only if your account remains active and is in good standing throughout this duration.
But paying a considerable amount in deposit for a connection can leave a big dent on your savings, not to mention the monthly budget. Again, the deposit could be out of the question if you do not have that kind of money at hand. This is where no deposit electricity option comes in.
So, what is no deposit electricity?
Just as the name suggests, no deposit electricity is the electricity that you get without paying any money upfront. It is also referred to as prepaid electricity or “pay as you go” plan because it works like a debit card or a prepaid cell phone. All you have to do is sign up for the services and add money to your account. You then use the money that you’ve deposited to pay for your electricity in real-time rather than monthly.
Here are the reasons why many people prefer no deposit option.
Pay the way you like
The no deposit option gives you the freedom to pay for your electricity in a way that works for you. Whether you feel like paying on a weekly, fortnightly or monthly basis – it is all up to you. You can even do daily if that’s what you like.
Avoid the expensive deposit
If there is one thing that’s great about the no deposit option is that you get to evade the costly deposit (which can range from $50 to hundreds of dollars). Many choose this plan because it spares them from having to dig deeper into their pockets to have electricity. By prepaying your power, you get to remove this stress from the process. And since you prepay the way you like, it’s not necessarily a lot of cash from your pocket.
No hidden charges
In the no deposit option, you get what you pay for – that simple. But the same cannot be said for the other payment plan options (especially if you are working with an untrusted provider). You’ll be surprised to learn that some retail electric providers try to maximize their profits by hiding costs.
No credit or identity checks
It is possible to have bad credit because of someone else’s doing – maybe you are a victim of a cybercrime, or you paid but there was a mishap somewhere or that you lost your job and so on. You don’t choose to lose your job – no one does. Whatever the case, it’s enough of a punishment, and you wouldn’t want to suffer any further and even pay up more fees, because of things that were out of your control. With no deposit plans, you can get month-to-month electricity without subjecting yourself to credit checks or a large deposit.
Also read, How to Prevent Electrical shocks & Fires
Is no deposit option good for you?
This will depend on a range of aspects, including your consumption, ratings, requirements and so on. But if you have bad credit, then no deposit plan is the way to go.