First Apartment? How to Get Lights With No Credit History

Texas light companies typically require a $200-$400 deposit from first-time customers with no credit history — but prepaid plans skip the credit check entirely and get your lights on the same day for $40-$75. You signed your first lease. Maybe you’re 18, maybe you’re 22 and finally getting your own place after living with family. Either way, you go to set up your lights and the light company says: “We need to run a credit check.”

And you’re thinking: what credit? You’ve never had a credit card, a car loan, or a light bill. You don’t have a low score. You have NO credit. And to the light company’s system, that’s basically the same thing.

Here’s how to deal with it.

What Happens When You Have No Credit History

When a light company runs a credit check and finds nothing, they treat it similarly to finding a low score. No track record means no proof you’ll pay, and under Texas deposit rules (PUCT §25.24), that means they can require a deposit.

Typical deposit for a first-time customer with no credit history: $200-$400. Some companies set it at a flat $200. Others calculate it based on the estimated usage at your address, which can push it higher, especially for a house or a larger apartment.

That’s a lot of money when you’re also putting down a security deposit on the apartment, paying first month’s rent, buying basic furniture, and trying to keep your bank account above zero.

The good news: there are several ways around it.

Option 1: Prepaid Lights (The Fastest Path)

Prepaid lights don’t run a credit check. Period. They don’t care if you have no credit, thin credit, or a 400 score. You put money on your account, you use it, and you add more when it runs low.

What it costs to start: Most prepaid companies need $40-$75 as an initial balance. That’s not a deposit. It’s credit on your account that gets used up as you consume power.

How fast it works: Same day, usually within a few hours. You can sign up online or by phone in the morning and have lights by the afternoon.

The trade-off: Prepaid rates per unit of power are higher than traditional fixed-rate plans. But when the alternative is a $300 deposit you don’t have, prepaid gets your lights on today for less than $75.

Read our how prepaid works guide for the full breakdown of daily balance management, alerts, and what happens if your balance runs low.

Option 2: Compare Light Companies (You Might Get Approved)

Here’s something most people don’t realize: different light companies have different credit thresholds. Company A might flag your no-credit file and require $400. Company B might approve you with $0 down because their algorithm scores new credit files differently.

Before you assume you need prepaid, spend 60 seconds checking. Enter your ZIP at NoDepositLights.com and we’ll show you which companies serve your area and what deposit (if any) they require.

Getting approved for a traditional plan with no deposit is the best-case scenario. Lower rates, monthly billing, and you start building a relationship with the light company from day one.

Option 3: Letter From a Previous Address

If you were living with your parents or a family member before, and the lights were in their name, some companies will accept a “letter of satisfactory payment” from that household showing the bills were paid on time.

This doesn’t always work because your name wasn’t on the account. But some companies accept it, especially if you can show you lived at that address (your name on the lease, or mail sent there, or a driver’s license with that address).

Worth trying. Call the light company and ask if they accept third-party payment history.

Option 4: Deposit Payment Plan

If a deposit is unavoidable, ask if you can split it. Some light companies let you pay the deposit in installments over 2-3 months instead of all at once. $300 upfront might be impossible, but $100/month for three months could be doable.

This isn’t advertised on most company websites. You usually have to call and ask. Check our deposit waivers guide for other alternatives.

Option 5: Ask a Parent or Family Member

If someone in your family has good credit and is willing, they can put the lights in their name at your address. They’ll need to prove they live there (or at minimum be on the lease), which varies by company.

This gets your lights on without a deposit, but the account is in their name, not yours. That means their credit is on the line if the bill goes unpaid, and you’re not building your own payment history. It’s a fine short-term move, but there’s a better long-term play.

The 12-Month Move That Changes Everything

Here’s the thing nobody tells you when you’re getting your first apartment: the first year is the hardest. After that, everything gets easier.

If you can get through 12 months with on-time light payments, you can get a letter of credit from your light company. This letter tells your next light company: “This person pays on time.” And that letter can waive the deposit entirely.

This works even if you start with prepaid. Twelve months of keeping your prepaid balance funded and never getting disconnected counts as payment history.

Here’s the play:

Month 1: Sign up for prepaid lights. $40-$75 to start. No credit check needed.
Months 1-12: Pay your light bill on time. On prepaid, that means keeping your balance above zero. Set alerts so you never run out.
Month 12: Contact your prepaid company and ask for a letter of credit or payment history letter.
Month 13: Use that letter to switch to a traditional fixed-rate plan with no deposit. Your rate drops. Your monthly cost drops. You’re done paying the “no credit” premium.

We wrote a whole guide on this: the path from prepaid to traditional plans. It’s the playbook.

Other Things That Build Your Credit for Next Time

Your light bill is one piece. Here are other moves you can make during that first year:

Secured credit card. You put down $200-$500 as collateral, and the bank gives you a credit card with that same limit. Use it for small purchases, pay it off every month. After 6-12 months, your credit score starts appearing.
Credit-builder loan. Some credit unions offer small loans ($500-$1,000) where the money goes into a savings account. You make monthly payments, and when the loan is paid off, you get the savings. Each payment builds your credit.
Authorized user. If a parent or family member adds you as an authorized user on their credit card, their payment history can show up on your credit report. You don’t even need to use the card.

None of these affect your light bill directly. But they build the credit file that means no deposit next time you move.

What NOT to Do

Don’t ignore the deposit and hope it goes away. If you apply for service and get quoted a deposit, it’s not negotiable through the online form. You need to either pay it, find an alternative, or go with a different company.

Don’t use a fake SSN or someone else’s identity. This is fraud. It will catch up with you, and the consequences are far worse than a $300 deposit.

Don’t assume all-bills-paid is cheaper. It might seem easier to rent an apartment where lights are included, but you’re paying a premium in higher rent, and you’re not building payment history. Run the math before you decide.

Don’t sign up for the first company you find. Two minutes of comparison can save you hundreds on a deposit. Check multiple companies through our deposit checker before committing.

The Bottom Line

Having no credit history isn’t a dead end. It just means you need to start somewhere. Prepaid lights get you in the door with no credit check and no deposit. Twelve months later, you’ve got a track record that opens up better, cheaper options.

Everyone starts at zero. The system doesn’t make it easy, but the path through it is clear: get your lights on today, pay on time for a year, and use that history to level up.

Start by checking what’s available at your address. Enter your ZIP at NoDepositLights.com and see your options. In most cases, you can have lights on by tonight for under $75.

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This guide is for informational purposes only and does not constitute legal or financial advice. For official rules, visit the Public Utility Commission of Texas. NoDepositLights.com is powered by Compare Power (PUCT License BR190020).