ElectricRates

Get Texas Electricity with Bad Credit

Prepaid plans require no credit check. Month-to-month plans have no deposit. Here's how to get power on when your credit isn't perfect.

Enri Zhulati
Enri Zhulati

Consumer Advocate · 7+ years in energy markets

Published January 15, 2025 Updated January 3, 2026

Energy market veteran focused on making electricity shopping simple and transparent.

Good News: You Have Options

Prepaid electricity requires no credit check at all. You can get same-day service with providers like Payless Power—just an initial payment of $40-$75 to start, no deposit, no contract. If you need electricity TODAY and have bad credit, prepaid is your fastest path. For longer-term savings, some traditional providers waive deposits if you sign up for autopay.

Find No-Deposit Plans in Your Area

Enter your ZIP code to see prepaid and no-credit-check options available at your address.

No-Deposit Electricity Plans

Month-to-month plans with no deposit or early termination fees

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Your Options When Credit Is a Challenge

Prepaid Electricity

No credit check needed

01

Pay before you use, no deposits, no contracts. Works like a prepaid phone.

Pros

  • No credit check at all
  • No deposit required
  • Same-day service available
  • Cancel anytime

Cons

  • Slightly higher rates
  • Must keep account funded
  • Power stops if balance hits $0

No-Deposit with Autopay

Traditional plan without upfront costs

02

Some providers waive deposits if you agree to automatic payments.

Pros

  • Access to cheaper fixed rates
  • No upfront deposit
  • Regular monthly billing

Cons

  • Requires credit check
  • Must link bank account
  • Penalty for failed payments

Low Deposit Plans

Smaller upfront cost

03

Deposit based on estimated usage rather than credit score.

Pros

  • Lower deposit than standard
  • Access to regular plans
  • Deposit may be refundable

Cons

  • Still requires some upfront payment
  • Credit check required
  • May have minimum usage

Letter of Credit

Prove payment history

04

Get a letter from your previous utility showing on-time payments.

Pros

  • Can waive deposit entirely
  • Works with most providers
  • Shows responsible history

Cons

  • Need 12+ months history
  • Previous provider must cooperate
  • Only works if no unpaid debt

How Prepaid Electricity Works

Prepaid electricity is the easiest path when credit is an issue. Here's exactly how it works:

  1. 1

    Sign up (5 minutes)

    Enter your address and personal info. No credit check. No SSN verification.

  2. 2

    Make initial payment ($40-$75)

    This covers your first week or two of usage. Not a deposit—you use it.

  3. 3

    Service starts (often same day)

    If you order by cutoff time (usually 2-6pm CT), service can start today.

  4. 4

    Monitor your balance

    Get daily usage texts. Reload anytime via app, online, or at stores like CVS.

Important: Keep Your Balance Positive

Unlike regular electricity, prepaid disconnects when you hit $0—no grace period. Set up low-balance alerts and auto-reload to avoid surprise disconnections. Most providers let you reload in $20 increments.

The Real Cost: Prepaid vs. Deposit

Prepaid rates are significantly higher per kWh, but you avoid the deposit and credit check. Here's an honest comparison for someone with bad credit:

Cost Factor Traditional (w/ $300 deposit) Prepaid
Upfront Cost $300 deposit $50 initial payment
Rate per kWh ~10-11¢ ~17-21¢
Monthly Cost (1,000 kWh) ~$105 ~$190
Annual electricity cost ~$1,260 ~$2,280
Cash tied up in deposit $300 for 12+ months $0
First Year Total Outflow $1,560 $2,330

The honest math: Prepaid costs about $1,000 more per year in electricity. However, prepaid makes sense if you can't qualify for a traditional plan at all, need immediate service without a credit check, or can't afford the $300 upfront deposit.

Better option if you can swing it: Pay the deposit, get the traditional plan, and your deposit is typically returned after 12 months of on-time payments. This saves $1,000+/year in electricity costs.

What If I Have a "Switch Hold"?

Switch Hold = Blocked Meter

A switch hold is placed on your ESI ID (meter) in ERCOT's system when you owe money to a previous provider. This blocks ALL providers—including prepaid—from serving your address until the debt is resolved.

How to resolve a switch hold: Contact your previous provider to pay the balance or set up a payment plan. Once cleared, you can switch to any provider, including prepaid or no-deposit options.

Moved into an address with someone else's switch hold? If a previous tenant left unpaid bills, you can file a New Occupant Statement with proof of residency (lease, utility bill, etc.) to clear the hold without paying their debt.

For complete instructions, see our Switch Hold Guide.

Check What's Available at Your Address

Enter your ZIP code to see no-credit-check and low-deposit options in your area.

Frequently Asked Questions

Can I get electricity in Texas with bad credit?
Yes, you can absolutely get electricity in Texas with bad credit. Prepaid electricity plans don't check your credit at all—you pay upfront and use electricity as you go. Many traditional providers also offer no-deposit options if you enroll with autopay, or accept a smaller deposit based on usage rather than credit score. Texas deregulation means you have more options than regulated states.
What is prepaid electricity in Texas?
Prepaid electricity in Texas works like a prepaid phone: you pay for electricity before you use it, and your balance decreases as you consume power. There's no credit check, no deposit, no contract, and no monthly bill. You just keep your account funded. If it runs out, service stops—but you can reload and restore power immediately. Providers like Payless Power and Prepaid Lights offer this model.
How much is an electricity deposit in Texas with bad credit?
With bad credit (below 580-600), traditional Texas electricity providers may require deposits ranging from $150-$400 depending on your credit score and estimated usage. However, prepaid electricity requires no deposit at all—just an initial payment of $40-$75 to start service. Some providers also waive deposits if you sign up for autopay or provide a letter of credit from a previous utility.
Can I get same-day electricity with bad credit in Texas?
Yes. Prepaid electricity providers can often activate same-day service, even with bad credit. Payless Power and Prepaid Lights offer same-day connections if you order by certain cutoff times (usually 2-6pm CT depending on your TDU area). Traditional providers with credit checks may take 1-3 business days.
Is prepaid electricity more expensive than regular electricity?
Prepaid electricity rates are typically 5-10¢/kWh higher than the cheapest fixed-rate plans (around 17-21¢/kWh vs. 9-12¢/kWh for fixed-rate). However, you avoid deposits (which can be $200-$400 with bad credit), late fees, and service connection fees. For customers with credit challenges who can't get approved for fixed-rate plans, prepaid provides immediate access to electricity without a deposit.
What happens if I run out of prepaid electricity balance?
If your prepaid balance hits $0, your electricity is disconnected—but there's no penalty or reconnection fee. Simply add funds to your account, and service restores automatically, usually within 2 hours. Most prepaid providers send low-balance alerts by text or email so you can reload before disconnection.
Can I switch from prepaid to a regular electricity plan?
Yes, you can switch from prepaid to a traditional plan anytime. If your credit situation improves or you've built 12 months of on-time payment history with your prepaid provider, you may qualify for no-deposit service with traditional providers. Some people use prepaid to establish payment history, then switch to cheaper fixed-rate plans later.
Do Texas electricity companies check credit?
Most traditional Texas electricity providers do a soft credit check during enrollment. If your score is low (typically below 580-600), they'll require a deposit. However, prepaid electricity providers like Payless Power do NOT check credit at all. Your eligibility is based solely on the service address, not your personal credit history.
What if I have unpaid bills with a previous Texas electricity provider?
If you have unpaid bills with a previous Texas provider, you may have a "switch hold" on your meter (ESI ID) that prevents ALL providers—including prepaid—from serving your address until the debt is resolved. Contact your previous provider to arrange a payment plan or pay the balance to clear the hold. If you moved into an address where a previous tenant left a switch hold, you can file a New Occupant Statement with proof of residency. See our Switch Hold Guide for details.
Which Texas electricity companies accept bad credit?
All Texas prepaid electricity providers accept customers with bad credit since they don't check credit. This includes Payless Power, Prepaid Lights, Quick Electricity, and Acacia Energy. Traditional providers like TXU Energy, Reliant, and Gexa will accept bad credit customers but require a deposit. Some providers waive deposits with autopay enrollment.

Related Texas Electricity Guides

No-Deposit Electricity

All ways to skip the deposit

Switch Hold Guide

How to get power with unpaid bills

How to Switch Providers

Step-by-step switching guide

Compare All Plans

See every Texas electricity option

How We Ensure Accuracy

Since 2009, the team at ElectricRates.org has helped over 5 million energy consumers find better electricity rates. Supplier information comes from state regulators, company filings, and documented customer feedback. Read the editorial standards & see our methodology.