Many people are finding themselves in tough financial situations during the COVID-19 pandemic. Jobs have been lost, businesses are closing and government and non-profit aid is drying up. This is causing a significant number of energy consumers to struggle with paying for their electricity. In order to avoid losing their service altogether, many are seeking out no credit electricity plans to help them keep their lights on.

While most REPs require a deposit upfront when a new customer signs up, some do not and instead offer a no credit electricity plan to allow them to get their electricity on as quickly as possible. These no credit electricity plans are often called prepaid plans, and they work like pre-paid cell phone contracts in that the customer pays for what they use upfront. If a consumer doesn’t pay for enough energy, the provider may shut off the service, but consumers can purchase more electricity at any time.

These plans can be a great option for those who don’t have the money to pay for a large upfront deposit and need to save up for other emergencies. In addition, they can help build up a positive credit history by making regular payments. It is important to note that these plans are not without risk, however. If a customer fails to pay the total amount of electricity they have paid for, or even just a small portion of it, then their credit will take a hit. Also, if the provider reports late payments to the credit bureaus then the consumer will find it difficult to qualify for future no credit electricity plans.

It is important to compare the various no credit electricity plans available in your area before signing up for one. This is easy to do using our marketplace at Choose Energy. We will run a soft credit check that won’t affect your credit score to help you find providers offering no deposit electricity in your zip code. Once you’ve found a plan, you can sign up for it online in just minutes.

No credit check electricity providers offer a variety of plans, including prepaid electricity, to meet the needs of each customer. They typically charge a little more for their electricity than traditional plans because they are taking on more of the risk. These plans are also generally a shorter term than traditional contracts.

Most no credit check electricity providers offer a month-to-month contract, which is great for those who are only in town for a few months or for individuals who are re-establishing their credit. However, some have longer terms as well. If you’re interested in getting a no credit check electricity plan, be sure to enter your zip code at Compare Power to see the deposit requirements for all of the local light companies and energy providers. Then, you can decide which is the right fit for you.