Last Updated on April 29, 2021 by Mary Pressler

Low Electricity Rates for Customers with Good Credit In Texas, Good Credit Gets You the Best 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. Those with poor credit are asked to pay a security deposit. The deposit, ranging anywhere from $100 to $250, 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. Of course, prepaid energy is more expensive, so some customers will pay the security deposit to secure the best electricity rate. You don’t have to have good credit to get electricity in Texas, but those who do have an big advantage when it comes to getting the cheapest energy prices.

Choose an Energy Provider that Rewards Good Credit – Rhythm Texas

For the best electricity rates in Texas, we recommend Rhythm. Not only does Rhythm 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.

Try Rhythm for 90 days. If you’re not satisfied with their service, you can switch away with zero penalties. Online enrollment with Rhythm takes about 5 minutes.

Good Credit Electricity in Texas

What is Considered a Good Credit Score in Texas? 

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!

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