Moving into a new place? Here's how bad credit affects utilities.
How Utilities Use Credit
Most utility companies check credit to determine:
- Whether to require a deposit
- Deposit amount
- Payment terms
Typical Deposit Amounts
Electric
$100-400 depending on estimated usage
Gas
$50-200
Water
Usually lower or no deposit
Internet/Cable
$50-200 or equipment deposit
Reducing or Avoiding Deposits
1. Letter of Credit
Get a letter from your previous utility showing good payment history.
2. Payment History Proof
Show bank statements proving on-time payments.
3. Autopay Enrollment
Some utilities waive deposits for autopay customers.
4. Budget Billing
Enrolling in level payment plans may reduce deposit.
5. Third-Party Guarantee
Have someone with good credit guarantee your account.
If You're Denied Service
Utilities generally can't deny essential services but can:
- Require larger deposits
- Require prepayment
- Put you on a cash-only basis
Consumer Protections
Contact your state Public Utilities Commission about:
- Payment plan options
- Hardship programs
- Deposit requirements
Getting Deposits Back
Deposits are typically refunded after:
- 12-24 months of on-time payments
- Account closure in good standing
Ask about refund policies when you set up service.
Building Credit Through Utilities
Experian Boost
Add utility payments to your Experian credit report for free.
How It Works
- Sign up for Experian Boost
- Connect your bank account
- Utility payments are added to your report
- Score may increase immediately
Rent Reporting Services
Also consider reporting rent:
- Rent Reporters
- Rental Kharma
- Self (formerly Self Lender)
Prepaid Utilities
Some areas offer prepaid utility meters:
- No credit check
- No deposit
- Pay as you go
- Monitor usage in real-time
State Assistance Programs
Many states offer utility assistance:
- LIHEAP (heating/cooling)
- State-specific programs
- Non-profit assistance
Plan Ahead
Before moving:
- Check utility credit policies
- Save for potential deposits
- Gather payment history documentation
Improve Your Credit
Better credit means no deposits. Pioneer Credit Solution can help. Call 1-888-271-2293.