So why are prepaid electric companies evil and for that matter why are payday loans, cash advance stores, and unsecured credit card companies evil also?

For some even the rental furniture stores like Aarons furniture leasing is considered of the devil. Many people simply don’t get it as to why people would have such hatred and disdain for these companies.

It is very simple really…you see if Aarons is charging someone $5 a month to lease a lamp but that person only makes a $500 a month that $5 a month is a lot of money for that person.

For that guy who makes $500 a month and has an unsecured credit card he is paying off that has a 22% interest rate where he only makes minimum payments on of $50 a month it begins to add up.

Before you know it $200 – $300 in payday loans, credit card bills, and rental furniture has bit into this guys income enough to the point he must start borrowing money from family and friends.

Now in America we have food stamps so at this point the guy still may be in government housing and have food stamps for basic food needs.

Now when it comes time to turn on the electricity at the government housing he can either ask for government assistance with help in paying the deposit or make quick work of it by going with a prepaid electric company.

So how are prepaid electric companies lumped in with the evils of Payday loan companies and the like?

Well with prepaid electricity you often pay an estimate in advance on what the company believes you will owe them in electric service charges.

As of 2012 things in Texas are much more promising for prepaid electricity because the usage is calculated accurately in real time and sent over the air waves.

This means instead of relying on the evils of false estimates a real recording and charging towards actual electric usage can occur.

In the past some fly by night prepaid electric companies would over-estimate, take your prepayments, eventually go out of business and keep your over payments and your last prepayment.

To close your doors and take your money is truly evil but I must tell you not all prepaid companies do this.

A couple things to pay attention to when deciding on a prepay electric company are:

  • How professional the website looks like.
  • How long have they been around
  • Are they clear about the charges or rate you will pay?
  • Do they offer a fixed rate offer
  • Do they display a customer facts label prior to signing up with them?

In summary these businesses have been complained about because some think they prey on the poor and needy people that cannot afford to rent a lamp monthly or buy prepaid electricity at inflated prices. In reality these companies are nothing more then a cheaper more effective banking alternative. I remember several times not paying close attention to my bank account, buying a snickers bar at a gas station and being charged a $35 overdraft penalty by Bank of America for a $1.50 purchase is a 2333% interest rate. If you think about the alternative to traditional electric companies asking you for a large deposit that you could never pay the prepaid electric company is really offering a cheap no hassle way of signing up quick, often with a competitive electricity price and you don’t to fork over rent and food money as a deposit.

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In Dallas Texas there are several cheap discount electric companies but most of them have a deposit requirement based on a credit score requirement.

Unfortunately none of these Dallas Texas electric companies that offer a cheap fixed electricity price will let you know their credit score criteria a head of time.

The reason has to do with how these electricity providers make money. They operate based on large volume and thin margins. If a Dallas TX electric company has a great rate they have to be extra strict on the credit score criteria so they don’t take on too many people who may default on their electric bill.

I personally have a brother I love who has a terrible credit score and will swear up and down that he will pay his car note if I were to cosign but as soon as I do something like that he defaults the first month and I get stuck with the bill.

Texas electric companies have the ame challenge of avoiding the irresponsible older brother who can never seem to pay his bills.

The best way to get a good electric rate in Dallas with no or atleast a low deposit is to compare prices among several. Eventually one of these electric companies will offer a respectable rate and deposit amount.

Saving Energy Costs Through Energy Efficiency in Dallas

Air leaks around doors and windows can be a huge source for wasted energy and money.  It is really quite a shame that so many people suffer from higher Dallas, Texas electricity service bills when the solution to this problem is so very simple.

Just use a candle to go around your home, stopping in front of areas where air leaks are likely to occur.  If the flame flickers use a bit of caulking or weather stripping to seal the area and move on to the next place.

You may be surprised at just how much extra you were needlessly paying for your electricity service every month.

Another great way to get that Dallas, Texas electricity service bill down is to obtain a lower rate through ElectricRates.  Just use our online comparison tool to start shopping.

Enter your zip code, select your service type, and ElectricRates will provide you with and easy to read chart of all Dallas, Texas electricity service providers and their rates.  Any additional fees and surcharges are already averaged in to the final rate you see, so you know exactly what the deal is before you buy.

You can order your new service online through ElectricRates or give us a call toll free at 1-800-971-4020 if you have a few questions you’d like answered before you commit to anything.

Our energy consultants are friendly and knowledgeable about the Dallas, Texas electricity service market and will be happy to assist you in any way possible.

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