Last Updated on March 8, 2024 by Mary Pressler
In Texas, A Good Credit Score Gets You the Lowest Electricity Rate
In Texas, most energy providers require their customers to pass a credit check when entering into an electricity contract with a low fixed rate. Customers with poor credit are asked to pay a security deposit upfront. An electricity deposit costs anywhere from $100 to $350, acts as insurance to the electric company if the customer defaults on payments.
Most people with bad credit can’t pay the deposit and opt for prepaid electricity instead.
You don’t have to have a high credit score to get electricity in Texas, but those who do have an big advantage when it comes to getting the cheapest energy prices. We’ve partnered with the best electric companies for good credit.
Frontier Utilities- A Texas Electric Company that Rewards Good Credit
For good credit electricity in Texas, we recommend Frontier Utilities. Not only does Frontier offer the lowest energy rate per kWh for those with an adequate credit score, they also reward their customers for things like enrolling in electronic billing and Auto-Pay.
We recommend a long term energy plan for our high usage, good credit customers. Frontier Utilities has the best 24 month energy deals in the state. With a two year contract, your rate stays the same, no matter how much electric rates increase.
What is a Passing Credit Score for Electricity Service?
A credit rating between 690 and 719 is considered good, but each electricity provider has different thresholds for acceptance. If you’re denied electricity service by one company, you have many more options, including prepaid lights.
What is a Good Electricity Rate in Texas?
In Texas, the average residential electricity rate is 11.87￠per kWh. This is below the national average in 2021. If you happen to come across an offer that is much lower than 11.87￠, you should ask to see the Electricity Facts Label (EFL), or “facts sheet”.
Choosing the Best Electricity Offer for High Credit Scores
Searching the web for electric deals can be overwhelming with over 125 energy providers operating in Texas. People with good credit have options that include free energy, membership fees and even Amazon cards, but it’s important to understand the actual energy rate above all of the gimmicks.
Before choosing an electricity offer, make sure you read over the Electricity Facts Label, the fine print of the energy contract. There you will pertinent information such as the
- Actual electricity rate
- Transmission and delivery charges
- Type of electricity rate (fixed, variable or market)
- Length of the contract term
- Early termination fees
Using the information from the EFL, you will be able to compare competitive offers and determine the best electricity rate. If you have good credit, you can lock in a cheap, fixed energy rate up to three years!
