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Most Texans are feeling the impact of the hard economic times brought about by the COVID-19 pandemic (Texas Tribune calls it “COVID19 recession”). People have lost jobs, businesses are struggling and some government and non-profit aid are no longer forth-coming. The effects are also felt in Texas energy markets as a significant number of electricity consumers cannot afford the high deposit fees that some electricity companies demand. The situation has also had a negative effect on some people’s credit score.

Even during these hard times, Payless Power is determined to ensure that you have access to affordable and reliable electricity, irrespective of your income level or credit history. This is reflected in their no credit check electricity plans. Read along to understand more about this type of plans

What is a no credit check electricity plan?

In Texas, if you have a bad credit score or don’t have a recognized credit, most electricity providers will demand a credit check for you to qualify for their electricity plan. No credit check energy plans offer an alternative option to people with poor credit as it requires no background check is done on your financial situation. It is like getting pre-approved without being subjected to the stressful pre-approval process.

Apart from no credit checks fees, these types of electricity plans also have fairly affordable rates. It also offers you that pay-as-you-go convenience and takes away the worry of shocking or unexpected electric bills as is the case in some electricity plans. All you need to do is to determine how much electricity you need and pay for that. It limits you from spending what you don’t have hence preventing you from digging a debt hole.

No credit checks pre-paid electricity plans

One of the best electricity plan options with no credit check is the prepaid electricity plan. In fact, most electricity consumers, who due to one reason or another have a credit problem, have enrolled in a prepaid electricity plan. Payless Power has some of the best-prepaid electricity plans in Texas (will talk about them later).

Prepaid plans which are also known as “Pay as you go” are a type of electricity plan that makes it possible for you to pay before use. With prepaid plans, you are not necessarily required to have a good financial history, and neither will you be subjected to credit checks. You only need to register and deposit some funds to your prepaid account and you are good to go. The money will be deducted from your account as you continue to use your account.

Why do electric companies carry out credit checks?

Electricity and gas bills are mostly paid in arrears which basically means that you are paying for the service after you’ve already used it. The payment is made either through monthly bills or direct debit. For electric companies, it means that in each payment period, there will be those customers who will pay on time and there are those who will pay late, and there those who may not pay.

The more the number of customers with unpaid bills, the more costly it will be to the energy company. This in turn means that the electric company will have to increase the rates to make-up for the non-payments. However, since the Texas electricity market comprises several competitive electricity companies, an electric company with a higher electric rate is likely to lose business. And this is why energy companies will do all they can to minimize outstanding debts.

So, in a nutshell, the primary reason why most electric companies examine your credit history is to determine your ability to pay. The argument is that, if you have a poor credit history chances are high that you may default on your payment. The credit checks and deposit fees act as measures to prevent non-payment. If you have a past record of non-payment especially if it’s a non-payment on a utility account, you certainly will not qualify for a postpaid electricity plan

Other reasons for a credit check, is to confirm whether you live at the address you intend to connect, basic identity check, and lastly to check for information that you didn’t disclose.

What is the cost of an electricity deposit in Texas?

Electricity deposit charge in Texas varies extensively among electricity providers. The cost is determined based on your payment history and credit score particularly if you have a past record of unpaid utility bills. Some texas electric providers may opt to charge you a flat rate irrespective of your credit history. Generally, deposit fees vary from the cost of one month’s electricity service fee to twice the average monthly residential electricity bill.

The deposit fee for a small apartment (measuring about 70 square feet in size) with an energy consumption of about 750-kilowatt-hour per month is approximately $175 while the initial fee for a large apartment (measuring 1000 sq. ft) and whose electricity consumption is about 1000 kWh per month is roughly $233. For a small house with a consumption rate of around  1250 kWh per month is reported to be around $292.  Lastly, a large house that covers an area of 3800 sq. ft with a consumption of 2200 kWh per month, will require a deposit fee of around $514.

You might be required to pay the deposit in lump sum or in monthly installments. For monthly installments, the fee will be added to your monthly bill until it’s fully paid. However, if you are late or default on the payment, you will be required to pay the deposit in full.

Advantages of no credit check electricity plans

As stated earlier, this type of electric plan usually doesn’t have a deposit fee. Your electricity payment goes entirely towards payment of the electric bill which in most cases entails the electricity and delivery charges. This, therefore, makes it a bit cheaper than the electricity plans that require deposits.

Pay as you go convenience

Another benefit of this no credit checks energy plans is that instead of paying an initial deposit, you pay for what you can afford at that moment in time by giving you flexible payment. This means that you pay according to your electricity needs hence giving you control over your electricity payments.

Your credit history doesn’t matter

This is one of the best things about no credit check energy plans. It gives you the opportunity to be connected to electricity regardless of your past credit history or your credit score. This has brought immense relief to those who couldn’t qualify for the traditional postpaid energy plans due to their bad credit score.

No long electricity contracts

This type of plan has simplified energy transactions between the consumer and the provider. The contract doesn’t have so many requirements and hidden clauses, it majorly about electricity consumption. The payment is purely based on the electricity consumed and nothing more. It is convenient for individuals who move from town to town and those people who are in town for a few days.

Prompt Approval

Since these plans don’t require time-consuming credit history checks, the approval process is quite simple and takes not more than one day. All that is needed is for you to fill the registration forms with the right details and submit them. After it is approved, you’ll be connected in no time. It usually takes a day or less. This makes it easy for you to switch providers without having to worry about cancellation fees and going through long paperwork.

No upfront charges

Initial or deposit energy costs can be difficult to raise especially for individuals living on a budget and with limited or no loan options. This high deposit cost can keep them disconnected from the electricity grid for months as they hustle to raise the money.

Get a no credit check prepaid plan from Payless Power

Based in Fort Worth, Texas, Payless Power is an electric service company that supplies electricity to most parts of Texas’s deregulated areas including Corpus Christi, Houston, Dallas, Abilene, Killeen, Tyler, Laredo, and other areas. Payless Power’s prepaid electricity plans provide some of the most competitive electricity rates in Texas. Payless Power offers several rate plans, including our popular prepaid electricity plans: Premier 12, a 12-month fixed rate plan, and Easy Choice, a monthly variable rate plan. Both plans are great options for those who need affordable electricity and flexible payment plans that help you schedule payments based on other household budget needs.

All Payless Power prepaid electric plans do not require a deposit or credit check. The company also provides same-day electricity service to its customers (in homes with smart meters). It also helps you to monitor your electricity consumption by sending daily alerts showing your electricity consumption and your prepaid account balance.

What our customers are saying

See why our power customers say we're the best electricity provider in Texas!

Affordable and easy to make payments

I was worried about getting electricity for my home through a prepaid company. I was calling around to see different rates then going through all the hassle of credit checks while dropping points each…

Christine M. in Killeen

Happy Customer

I have been with this company for several years and have been very happy since. Even when I moved, they made my usually stressful situation very easy and carefree. I recommend them to everyone that I…

Julia L. in Webster

Long term customer

I have enjoyed the service for 2 years now. In the beginning this service was planned to be temporary but with the service being so effective for me i decided to keep it for the long haul. I’m a happy customer.

Kalandra H. in McKinney