Can I get traditional lights with no deposit in Texas?

Yes. If you have good credit (650+), most light companies waive the deposit automatically. If your credit isn't great, you can still skip the deposit through waiver programs (seniors, disability, SNAP), a letter of credit from your previous light company, or a deposit payment plan.

What's the difference between traditional and prepaid lights?

Traditional plans bill you monthly AFTER you use power. Prepaid makes you pay BEFORE you use it. Traditional plans have lower rates (saving you $80-100/month) but usually require a credit check and deposit. Prepaid skips both but costs more per unit.

What credit score do I need to skip the deposit?

Most light companies waive deposits for credit scores of 650 or higher. Some companies like 4Change Energy and Discount Power waive deposits at 600+. Each company sets its own rules, which is why we check multiple providers — one might approve you with no deposit while another wants $400.

What if my credit isn't good enough?

You still have options. Deposit waivers work regardless of credit if you're 65+, have a disability, or receive SNAP/Medicaid. You can also get a letter of credit from your previous light company showing 12 months of on-time payments. If none of those work, prepaid is always available.

How does a letter of credit work?

Call your previous light company and ask for a "letter of good credit" or "letter of payment history." They'll verify you paid on time for 12 consecutive months. Give that letter to your new light company and they have to waive the deposit — it's Texas law under PUCT §25.24.

Can I do a payment plan for the deposit?

Some light companies like TXU Energy and Reliant let you spread the deposit over 3-6 months instead of paying it all upfront. For a $300 deposit, you pay $50-75/month extra until it's covered. Not every company offers this, but it's worth asking. The total amount is the same, but it's easier on your budget now.

Why should I choose traditional over prepaid?

Money. Traditional plans cost about $80-100 less per month than prepaid. Over a year, that's nearly $1,000 in savings. If you can get traditional with no deposit, there's no reason to pay prepaid rates. The only catch is you need to qualify.

What happens if I can't get traditional anywhere?

Then prepaid is your path forward. It costs more, but it gets your lights on today with no credit check and no deposit. After 12 months of on-time payments with prepaid, you can get a letter of credit and switch to traditional — that's how you work your way back to lower rates.

Get Traditional Lights With No Deposit in Texas (Not Prepaid)

Why this matters

Prepaid lights cost about $80-100 more per month than traditional plans. That's nearly $1,000 a year you're losing if you don't have to.

The deposit is what's stopping you. Let's get around it.

5 Ways to Get Traditional Lights With No Deposit

You Have Good Credit (650+)

Most light companies in Texas automatically waive the deposit if your credit score is 650 or higher. Some companies are more lenient and might waive at 600+.

How it works:

You apply for service (soft credit check — doesn't hurt your score)
If your credit meets their threshold, deposit is waived
You start service with $0 down

Why we check multiple companies: Different companies have different credit thresholds. One might want a $400 deposit from you while another approves you with $0. We find the ones that say yes.

You Qualify for a Deposit Waiver

Under Texas PUCT rules, certain groups of people cannot be required to pay a deposit. Credit score doesn't matter. If you qualify, they have to waive it.

You qualify if you are:

✓ 65 or older — Age-based waiver, no other requirements
✓ Receiving disability benefits — SSDI or SSI qualification
✓ On SNAP (food stamps) — Current enrollment letter required
✓ On Medicaid — Enrollment verification
✓ Receiving TANF — Temporary Assistance for Needy Families

What you need: Proof of enrollment in the program (letter, benefits card, online portal screenshot). Most light companies accept documents by email.

Source: Public Utility Commission of Texas

PUCT §25.24 requires light companies to waive deposits for qualifying customers

Read our full deposit waiver guide for step-by-step instructions.

You Have 12 Months of On-Time Payments

If you paid your previous light company on time for 12 consecutive months, you can get a letter of credit. That letter forces your new light company to waive the deposit — it's Texas law.

How to get the letter:

Call your previous light company's customer service
Ask for a "letter of good credit" or "letter of payment history"
They'll verify 12 months of on-time payments and send the letter (usually by email)
Give that letter to your new light company when you sign up

Important: The 12 months must be with a Texas light company. Out-of-state utilities don't count. And the payments must have been on-time — even one late payment can disqualify you.

This works even if your credit isn't great. The letter proves you pay your bills, which is what the deposit is supposed to protect against. If you have the letter, your credit score doesn't matter.

You Can't Pay It All Now, But You Can Spread It Out

Some light companies let you spread the deposit over 3-6 months instead of paying it all upfront. You'll pay an extra $50-75/month on top of your bill until the deposit is covered.

Example:

Deposit required: $300

Payment plan: $50/month for 6 months

Total paid: Same $300, but easier on your budget now

The catch: Not every light company offers this. You have to ask. And you're technically still "paying the deposit" — it's just spread out instead of due upfront.

When this makes sense: If you have $50/month but not $300 today, and you want traditional rates instead of prepaid. Over 6 months, you've covered the deposit while paying lower rates the whole time.

Shop Multiple Light Companies

The simplest reason is that every light company sets its own credit thresholds and deposit rules. Company A might want $400 from you, Company B might want $150, and Company C might want nothing.

That's exactly why we built this site. We check multiple providers at once and show you who's most likely to approve you with $0 deposit.

Enter your ZIP to compare:

Texas ZIP codes only. We'll show you no-deposit plans in your area.

We'll show you traditional plans ranked by deposit amount. $0 options show up first when they exist.

Which Light Companies Waive Deposits?

Every traditional light company in Texas runs a credit check and has deposit requirements. But some are more lenient than others. Here's what we've seen:

More Likely to Waive (Lower Thresholds):

• Ambit Energy — Waives deposits for credit 620+
• Veteran Energy — Veteran-owned, flexible deposit policies for military/veterans
• 4Change Energy — Lower deposit thresholds

Stricter Requirements (Higher Thresholds):

• TXU Energy — Typically wants 650+
• Reliant — Higher deposit amounts
• Direct Energy — Strict credit requirements

Note: These thresholds change and vary by your specific credit profile. The only way to know for sure is to check.

What If I Can't Get Traditional Anywhere?

Sometimes your credit is too low, you don't qualify for waivers, and you don't have 12 months of payment history. In that case, prepaid is your path forward.

Reality check: Prepaid costs more. About $80-100/month more than traditional. That hurts. But it's better than no lights.

And here's the path back to traditional: After 12 months of on-time prepaid payments, you can get a letter of credit. Then you can switch to traditional and start saving money.

Think of prepaid as the bridge. It gets you across right now. Traditional is where you want to be long-term.

The Bottom Line

Traditional lights save you $80-100/month compared to prepaid. That's real money. The deposit is what's stopping you, but it's not an impossible barrier.

Your action plan:

Check if you qualify for a deposit waiver (seniors, disability, SNAP)
If not, check if you have 12 months of on-time payments for a letter of credit
If not, compare multiple light companies — different thresholds, different results
If nobody approves you, ask about deposit payment plans
If nothing works, start with prepaid and work toward traditional

Ready to find your options?