EspañolNo Deposit Electricity – It’s What You Need
No Deposit Electricity
The word DEPOSIT comes from Latin and means “to place for safekeeping or in trust, especially in a bank account, usually to gain interest.” – So Choose no deposit electricity.
While we have discussed this several times, we can never really talk about utility deposits enough. Electricity is not that easy to understand. At Electricity Express we believe that prepaid electricity should be fast, easy and hassle-free. Yes, there are some steps to follow, but it is much easier than postpaid energy services. Electricity Express has been in the utility business almost since the Texas energy deregulation in 2002. Let us share with you what we know and how it may affect you when you decide to go with an electric company that asks for a deposit. Now you can always choose no deposit electricity.
Deposits and Contracts with Postpaid Energy Companies vs no deposit electricity
Let’s take a look at postpaid energy services first. These companies make sure the customer is reliable and play it safe. Will the client fall back and change his mind? Contracts ensure the customer does not leave no matter what. Rates change fast, often for the worse. Postpaid electricity service companies know that if you are locked in a contract you can’t do anything about rate changes. You must stay with what you signed up for through the rest of the contract. The deposit is for them to keep in case you decide to break the contract. It will not generate any interest. Choose no deposit electricity.
Credit Checks with Postpaid Companies or no deposit electricity
Postpaid companies perform credit checks. Sometimes the credit criteria is vague. You can be affected negatively by this If you have decent credit but live in a zip code where the credit score of the majority of the residents is not perfect. Call any utility service (cable, phone, wireless, internet, etc.) and tell them you live in a high-end neighborhood. They may not even ask for your social security number.
A Credit Check Tip
Be careful – here is a tip to avoid damaging your credit instantly: did you know that your credit score is affected every time there is a credit inquiry? That’s right, if you go car shopping and 3 dealerships check your credit, those 3 checks appear on your credit history.
A few more pieces of advice: make sure utility companies perform a credit assessment (“soft credit check”). Not all postpaid companies do this. I also heard from a lawyer that “no utility bill can damage your credit. However, if that bill is sent to a collection agency, then they can damage your credit if you do not pay. The debt was bought by another party outside of the utility business”. Choose no deposit electricity.
Postpaid Electricity and Billing for Historical Usage
Postpaid electricity service providers use historical usage to charge customers. This a bit tricky. Some of you just moved to a new address and are looking for new energy service. If you are renting or the home isn’t new, historical usage can affect your utility bills. Do you know how much energy was used by previous residents during the past year? Consider this: a couple of years ago in Dallas we had 45 days in a row with over 100° temperatures. Just last winter several polar vortexes brought extreme temperatures. Let me ask you this: would you like to be quoted for that historical usage?
Lack of Same Day Service with Postpaid Companies
To make it worse, same day service is not always possible. Historical usage information comes from HUD (U.S. Department of Housing and Urban Development). This agency collects data about who previously lived in your home and then sends it to the utility retailer within 48 hours. This is why you can’t count on same day connection service with postpaid companies.
Breaking a Postpaid Contract
If you want to leave your energy company in the middle of a contract, you may have a battle on your hands. They will try to charge the “early termination fee” plus any balance, outstanding balance, surcharges, disconnection fees, etc. This can add up to $300 to $500. This is enough to send or sell the debt to a collection agency. Here is where the deposit comes in place; you break the contract, and they take your deposit.
There are ways to break a contract legally, especially if you are moving to a new residence. Yet with all the hassle involved, most likely an energy provider with no deposits is what you need. Choose no deposit electricity.
How Deposits Affect Utility Rates
Rates change all the time and are affected by the environment, temperature, gas prices, demand, etc. A postpaid energy company may change the rate depending on your deposit. Short-term agreements are better because you, not the company, decide what rate you want. Never pay a deposit.
Electricity Express believes in the “no deposit” electricity, a major benefit of prepaid electricity. You prepay what you think you will use in the future. Your budget and control your electronics and appliances usage and see your savings every day. In other words, you have the power to control your electric bill.
Give us a call and see how easy it is to get services. No deposit, no credit check, no contracts, fast, easy and hassle-free prepaid electricity services.
Electricity Express 855 781 6970
Cheapest electricity service in Texas
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No Deposit Electricity Texas
855-781-6970