Do you feel like you have a credit check for almost everything life requires? Bad credit can deny you access to everything you need to live your life. Electric service is a necessity, but you need good credit to get it. At the very least, without good credit, you will pay a hefty deposit to get power.
The cycle is frustrating and can seem never-ending. How can you get ahead if you can’t even get what you need? There is good news if you look beyond all the bad credit delays and dilemmas. Instead of a credit check and deposit, it is possible to get your power on today. The answer to your problem is a prepaid power plan from Pogo Energy. Pogo has made getting electricity fast and easy by being a different kind of electric company that doesn’t run the same checks or require the same deposit or commitment that other electric companies require.
Why does your credit matter when signing up for electricity?
Before we can explain how to avoid running a credit check, we need to share why some electric companies conduct these checks, what they are looking for, and what criteria they consider.
Payment History: A credit check helps assess your past payment history with other creditors. If you have a good credit history, it indicates that you are likely to make timely payments for your electricity bills as well. If you have some missed or late payments on your payment history, your credit score can be negatively affected, and you may end up paying more.
Risk Assessment: Electric companies want to minimize the risk of non-payment. A credit check enables them to assess the financial risk associated with serving a particular customer and determine if additional steps or precautions are necessary. If you have a lot of debt and a limited income, you might be seen as a higher risk.
Deposit Determination: Based on the credit check results, the electric company may require a security deposit from customers with lower credit scores. This deposit serves as a safeguard for the company in the event that the customer fails to pay their bills.
Establishing Creditworthiness: For new customers without a history with the electric company, a credit check helps establish their creditworthiness. This information is valuable for the company in deciding whether to extend credit or require upfront payments. Having no credit can be just as challenging to deal with as having bad credit.
Setting Terms and Conditions: Credit checks can impact the terms and conditions of service, including the billing cycle, payment terms, and any special arrangements.
Fraud Prevention: Credit checks also help prevent identity theft and fraud. Verifying customers’ identities through credit information helps ensure that the person applying for service is who they claim to be.
You can still get electric service if you have less-than-perfect credit.
Back to the question: How can Pogo offer electric service without running a credit check or requiring a deposit? The answer is yes, because electricity from Pogo Energy is on a pay-as-you-go basis. When you sign up and create an account, you can make deposits into it. The deposits create a “bank” that is used to pay for your electric usage as it is used. You can add funds to your account online or over the phone with a credit or debit card. We also accept Apple Pay and Google Pay, which is super easy to use. Or, if you prefer in-person interactions, you can visit a cash payment location. You keep the power on as long as your account balance remains over $0.01. Providing electricity under this model limits the risk for your electric company. With low risk, it allows you, the customer, to get what you need.
When the risk to the electric company is low, we do not require a deposit that serves as a backup for potential non-payment or late payment. This allows you to put that money towards the electricity that you will use. In addition to the money you save by not having to pay a deposit, Pogo doesn’t charge the fees that others do. We also don’t have a long-term contract. You can leave if needed without incurring an early termination fee. Pogo Energy is a prepaid electric company that turns you on, even if you have some blemishes on your credit report. Having power is a necessity; we make getting it and keeping it a no-hassle, no-hadache process.