Understanding Energy Credit Checks

Written by Faith Foushee

Edited by Jamie Cesanek

Last updated 03/06/2024

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• Universal credit checks simplify the process of enrolling in or switching energy providers.
• The streamlined process saves you time and effort and increases transparency about your energy options.
• The universal credit check is a soft inquiry and will not impact your credit score.

Electricity is essential to our daily lives, powering our homes and businesses. When setting up your electric service or switching to a new provider, electricity companies typically conduct a credit check to review your credit report and bill payment history. This information helps energy companies make decisions about providing services.

At SaveOnEnergy.com®, we prequalify you for our partners with a universal soft credit check. This process helps create a seamless experience without impacting your credit score. Learn more about energy credit checks, the benefits of a universal approach, and alternative plan options.

Understanding universal credit checks

When switching energy providers or setting up a new account, you’ll undergo a credit check to assess financial responsibility. That means your credit information is accessed seamlessly across multiple retail electric providers (REPs) instead of multiple credit checks for each supplier. Our universal credit check is a soft inquiry, which will not impact your overall score but is listed on your report.

Benefits of a universal credit check

• Save time and effort: Enter your information once instead of providing the same information individually to multiple companies. A universal credit check eliminates repetitive paperwork to streamline the process and save you time.
• Improved experience: The seamless credit check experience ensures an easier transition when shopping for and switching providers, reducing potential frustrations or delays.
• Increased transparency: With a single credit check, you can gain a clear understanding of your eligibility and available plan options to make an informed decision about your energy provider.

Drawbacks of energy credit checks

At SaveOnEnergy, we understand credit score concerns and provide hassle-free alternatives through our no-deposit and prepaid energy plans. We run a soft credit check for all providers. However, many prepaid and no-deposit options do not have a credit threshold, meaning you won’t undergo a full credit check from the provider.

What are no-deposit and prepaid energy plans?

Typically, electricity plans require you to pay an upfront deposit to enroll, but you can skip this step with a prepaid plan. Instead, you pay for your electricity in advance and add more funds to your account as needed. These plans are ideal if you want to avoid paying a deposit or do not want to provide your social security number upon enrollment. If this is not the case for you and you have a good credit score, you may qualify for no deposit and receive a lower rate with a fixed or variable-rate plan.

Our universal credit check simplifies the eligibility process to provide convenience, save time, and offer transparency. We strive to provide energy plan comparison tools and helpful resources to make informed decisions about your energy provider. Our goal is to help you choose the best electricity plan for your needs.