But then you find out you have to pay a hefty deposit to get started and now it seems like those savings will be going down the drain.
You’ve heard about no-deposit electricity plans and are wondering if that’s an option for you. It turns out there are several different ways to avoid paying a deposit, but some of them might end up costing you more in the long run.
In this article, we will describe what some of those plans might entail, and we’ll also let you know how Gexa Energy is working to help you save money — deposit or not.
Table of Contents
- What Does No-Deposit Electricity Typically Involve?
- Do All Electric Companies Require a Deposit?
- How Do No-Deposit Electricity Plans Work?
- Are There Options for No-Deposit Electric Companies in Texas?
- What Information Is Required to Run a Credit Check for No-Deposit Electricity?
- What Might Determine Good vs. Bad Credit?
- Gexa Energy’s Deposit Waiver Options
- Check Out Gexa Energy’s 100% Renewable Electricity Plans to See If They’re Right for You
What Does No-Deposit Electricity Typically Involve?
Many electricity companies require an up-front deposit before beginning service.
This is because customers typically use the electricity before they pay for it. A deposit helps guard against cases where customers fail to pay their bills.
However, plenty of companies offer no-deposit electricity.
This often involves running a credit check. If your numbers are good enough to satisfy the company’s requirements, you may not have to pay a deposit to begin your services.
But your credit score isn’t the only factor in determining whether or not you have to pay a deposit. Electricity companies also look at:
- No utility payment history — If you don’t have previously established utility accounts, they are more likely to require a deposit.
- Poor utility payment history — If you’ve missed payments or paid late in the last twelve months, electric companies won’t want to take a chance with no deposit.
- Outstanding balance owed — This will likely show up on your credit report since unpaid balances usually get sent to a collection agency or reported to a major credit bureau.
- Unverified identity — If you mistype your information or you’ve previously had a credit freeze or fraud alert, this may trigger the need for a deposit.
Do All Electric Companies Require a Deposit?
Most electric companies do require a deposit because they don’t want to run the risk that they won’t be paid for their services.
But some companies, such as Gexa Energy, offer ways to get out of paying a deposit.
As we said previously, this depends on the results of the credit inquiry. But don’t worry too much yet. If your credit isn’t up to snuff, there may be other ways to avoid paying a deposit. More on that later.
How Do No-Deposit Electricity Plans Work?
Besides the companies we’ve already discussed that offer deposit waivers with satisfactory credit checks, there are other options that may allow you to go without paying a deposit.
One such alternative is prepaid utility service.
This requires customers to pay for their electricity service in advance by purchasing credits for a meter on the home. Once the credits have been used up, the service stops.
Although this does help customers avoid paying a deposit, they typically pay more for service than traditional credit-based customers.
Some companies may also offer month-to-month electricity with no deposit. This gives the customer more flexibility in that they aren’t locked into a contract, but this does mean that the pricing is variable.
So your rate could be nice and low one month, then go up the next based on the market.
If the deposit is a gating item preventing you from signing up for electric service, these options could be good choices for you.
And Gexa Energy has many different types of plans that will save you money based on your lifestyle and usage, whether you’re required to pay a deposit or not.
Are There Options for No-Deposit Electric Companies in Texas?
Due to the deregulation of the Texas electricity market, there is now more freedom of choice for consumers and more competition among companies.
This competition and need to attract customers may cause many Texas energy companies to choose not to charge a deposit.
So how did this come about?
The Texas Senate passed a bill in 2002 stating that deregulation would be phased in over several years. This meant that the majority of the state’s power consumers could choose their energy service from a variety of retail electric providers (REPs).
So rather than having one energy company for each area that can charge whatever it wants, there are now many REPs you might be able to use based on where you live and what options you’re looking for.
What Information Is Required to Run a Credit Check for No-Deposit Electricity?
If you want your new energy company to run a credit check to see if you qualify for no-deposit electricity, they will need basic information such as your:
- Name
- Address
- Birthdate; and
- Social security number
If your credit looks good, you might not have to make a deposit. If it looks bad, you might be stuck paying it.
However, there are options for deposit waivers with Gexa Energy.
What Might Determine Good vs. Bad Credit?
Your credit score is based, in part, on the amount of money you have borrowed and why.
Not all reasons for borrowing money are bad — in fact, your score will be higher if you’ve borrowed for good reasons.
So what determines good vs. bad credit?
Examples of Good Credit
Good credit is money that is borrowed to provide growth that wouldn’t be possible without it. Some examples of this are:
- Student loans — The borrower assumes this will provide them with a higher-paying job in the future.
- Mortgages — The value of a home usually appreciates over time, so a house can be a great investment.
- Business loans — If a business is successful, the loan should provide a great return on the initial amount taken out.
Examples of Bad Credit
Bad credit, on the other hand, is borrowing money now that will provide no extra value after the debt is settled.
Examples of this include:
- Credit card debt — Credit cards are usually used to pay for things that the buyer can’t immediately afford, so this only serves to make the user more indebted.
- Auto loans — While most people need a vehicle to get around and can’t afford to pay for it outright, there is a tendency to pay more to get a car you want rather than require. And since automobiles depreciate very quickly, you’ll never get your money back on that investment.
If lenders or utility companies see high amounts of bad credit loans on your report, they may be hesitant to take a chance on you as a consumer.
Gexa Energy’s Deposit Waiver Options
Gexa does not offer no-deposit electricity plans, but they do offer plenty of affordable and flexible plan options.
If you qualify, there are ways to have your deposit fee waived.
Depending on Your Credit Check, a Deposit May Not Be Required With Gexa
As we said previously, if your credit check provides satisfactory information that you have a history of paying your utility bills on time and don’t have excessive bad debt, we may be willing to waive your deposit.
However, if the credit check doesn’t go your way, the following options show ways you can still avoid paying a deposit.
You Can Provide a Utility Credit History Letter
A satisfactory Utility Credit History or Credit Reference Letter may allow us to waive your deposit.
Here’s how it works:
- Provide a copy of your Utility Credit History (Credit Reference) Letter with your previous electric provider indicating you have not made more than one late payment in the last twelve months.
- Include your enrollment confirmation email or letter with the documentation.
- Fax or email the documentation to Gexa Energy.
- Your request for service will be processed when your document is received and approved by Gexa Energy, which may take 3-5 business days from the date of receipt.
At Gexa, we’d like to reward you for being a good customer. Showing us evidence of your good payment history allows us to do that.
You Are 65+ and Not Delinquent in Electricity Payments
We understand that retirees on a fixed income may not have extra money lying around to make deposits on utility accounts.
If you’re 65 or over and not behind on any electric service account payments, we’d like to help you.
All you need to do is:
- Provide a copy of your valid Driver’s License and your latest utility bill from your current provider indicating that you aren’t currently past due.
- Include your enrollment confirmation email or letter with the documentation.
- Fax or email the documentation to Gexa Energy.
- Wait 3-5 business days for the request to be processed.
You Are a Victim of Family Violence
Life can be hard, and we’re here to make it easier if we can.
If you have been the victim of family violence, we would be happy to waive your deposit in an effort to ease your burden — even just a little bit.
You can qualify for this relief by filling out the Victim of Family Violence form. This must be signed off on by any of the following certifying entities:
- Family Violence Center
- Treating Physician or Medical Personnel
- Law Enforcement Personnel
- Office of Texas District Attorney, County Attorney, or Attorney General
- Grantee of the Texas Equal Access to Justice Foundation
Once you have this form, you’ll just need to include it with your enrollment confirmation information and send it to Gexa Energy.
Check Out Gexa Energy’s 100% Renewable Electricity Plans to See If They’re Right for You
At Gexa Energy, we will work with you to see if you can avoid paying a deposit for your electricity service.
But whether a deposit is required or not, we offer a broad range of low-priced plans designed to meet your needs.
With options available such as the …
Gexa Energy Saver Plan
… you’re sure to find something that will match your usage needs and fit into your budget.
And with Gexa’s Happiness Guarantee*, you have the freedom to make a change if you aren’t pleased with your initial residential plan.
What more could you want? Contact us today and let’s get started.
Gexa Energy purchases renewable energy credits (RECs) from renewable generation resources throughout North America to match 100% of the energy sold under your electric plan. The RECs Gexa purchases represent the renewable attributes of power generated from a variety of renewable energy sources, including, but not limited to, the sun, wind, geothermal, hydroelectric, wave or tidal energy, and biomass or biomass-based waste products, including landfill gas.
* Happiness Guarantee - If you’re not happy with your new Gexa Energy residential plan, just call us within 60 days of your service activation date, change to another available Gexa Energy plan, and we’ll waive the early cancellation fee on your first plan; applies one time only for new Gexa Energy residential customers. Your contract term will restart with your second plan. Offer subject to change or withdrawal prior to customer acceptance.
Additional eligibility requirements, terms and conditions may apply. Gexa reserves the right to modify or discontinue offers at any time.