Direct Energy vs Payless Power: Credit Check vs No Credit Check

At a Glance

Factor	Direct Energy	Payless Power
Parent Company	NRG Energy (NYSE: NRG)	Young Energy (family-owned)
Years in Texas	24	21
Credit Check	Yes	No
Prepaid Available	Yes (Power-To-Go)	Yes (core product)
Green Plans	Yes	Yes (26% renewable included)
On ComparePower	Yes	Yes

Bottom Line: This isn’t a traditional comparison—it’s a credit check decision tree. Good credit? Direct Energy (or better yet, a budget provider). Rough credit? Payless Power is the best prepaid option in Texas.

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The Corporate Reality

Direct Energy is NRG Energy’s specialty plan brand. Fortune 500 parent. $3.6 billion acquisition in 2021. Massive corporate infrastructure. Your bill funds NRG shareholder returns.

Payless Power is family-owned. Three brothers (the Young family) started it 21 years ago in Dallas. No corporate parent. No shareholders beyond the family. They built the best prepaid electricity operation in Texas by focusing on one thing: serving customers the big companies won’t touch.

The irony: Payless Power (family-owned, serving credit-challenged customers) has 4.5 stars from 13,700+ reviews. Direct Energy (Fortune 500, serving mainstream customers) has a D- BBB rating. Scale doesn’t equal quality.

What They Actually Sell

Direct Energy (standard plans, credit required):

• Fixed-rate plans at 15.5-16.8 cents/kWh at 1,000 kWh
• Twelve Hour Power 12 (free nights 9 PM-9 AM)
• Free Power Weekends 12
• Green Texas 12 (100% renewable)
• Variable rate at 21-24 cents/kWh
• ETFs: $150 (12-month) or $295 (24-month)

Direct Energy (prepaid, no credit check):

• Power-To-Go: ~16.5 cents/kWh, $75 minimum to start, daily balance alerts

Payless Power:

• Prepaid: ~19+ cents/kWh, $40 to start, daily balance alerts, same-day connection
• Fixed-rate plans (6-12 months) also available with no credit check
• $49 early termination fee (much lower than Direct Energy’s $150-$295)
• Bilingual support

Both offer prepaid. Direct Energy’s Power-To-Go is cheaper per kWh (~16.5 vs 19+ cents), but Payless Power starts at $40 vs $75 and connects same-day. If you’re choosing between prepaid options, the lower startup cost and same-day connection may matter more than the per-kWh difference.

The Credit & Deposit Question

This is the entire comparison for most people.

Can you pass a credit check?

• Yes: Skip both and get budget fixed-rate plans from Frontier or Gexa. Save $300-$500/year vs prepaid rates.
• Borderline: Direct Energy with a deposit still saves hundreds per year vs prepaid. The deposit refunds after 12 on-time payments.
• No: Payless Power. $40 to start, same-day connection, 21 years of track record.

Direct Energy’s deposit waivers: Good utility payment history, letter of credit, age 65+, domestic violence certification, or use Power-To-Go prepaid.

Payless Power: No credit check on any plan. No deposit ever. Everyone approved. Period.

The Verdict

Choose Direct Energy if:

• Your credit qualifies for standard plans and you want free nights/weekends
• You want the cheapest prepaid option (Power-To-Go at ~16.5 cents/kWh)
• Green energy plans matter to you
• You can afford the $75 prepaid startup or deposit for standard plans

Choose Payless Power if:

• Your credit can’t pass a check anywhere
• You need power connected today (same-day by signing up early)
• $40 startup is all you can afford right now
• You’re rebuilding credit and need a bridge to traditional plans
• 4.5 stars from 13,700+ reviews gives you confidence

The bridge strategy: Use Payless Power for 6-12 months while making on-time payments. Get a letter of credit. Switch to a traditional fixed-rate plan and save hundreds per year. The prepaid premium is temporary if you build a payment track record.