Power Companies for Bad Credit: No Credit Check & Prepaid Options

If your credit score has taken a hit, you might worry that getting electricity will become a headache. The good news is that several power companies in New Zealand and Australia are willing to work with you, even with bad credit.

Prepay providers in New Zealand: 3 (Globug, Wise, Contact Energy) ·
Credit score considered poor: Below 600 ·
Time for negative credit items to clear: 7 years

Three prepaid providers, each with a different approach: one requires a credit check, two do not. That contrast is the first thing to understand.

Can you get energy with bad credit?

Yes, you absolutely can. While bad credit may limit your options, it does not cut off your supply. Prepaid and no-credit-check plans are designed exactly for this situation.

What counts as bad credit for energy providers?

• A credit score below 600 is generally considered poor (Canstar).
• Negative items like missed payments stay on your report for up to 7 years (Canstar).

How does bad credit affect your energy options?

• Standard postpaid plans usually require a credit check and may be declined.
• Prepaid plans skip the check entirely, but some still run one (e.g., Contact Energy’s PrePay requires a satisfactory credit check, according to Canstar).
• You may be asked for a larger deposit or a guarantor.

The implication: for most people with bad credit, the barrier is lower than they expect — the key is knowing which providers to approach.

Can I get an electricity plan without a credit check?

Yes, several retailers offer plans that do not require a credit check. In New Zealand, prepaid electricity is the most common route; in Australia, you can go through comparison sites that filter for no-credit-check options.

What are no-credit-check electricity plans?

• They typically involve prepayment or a higher upfront deposit.
• No credit inquiry means no hit to your score.
• Smart meters are required to track usage in 30-minute intervals (Canstar).

Which providers offer them in New Zealand and Australia?

• New Zealand: Globug (no credit check, no bond), Wise (no credit check, no deposit), Contact Energy PrePay (credit check required) – per Powerswitch.
• Australia: iSelect lists several retailers that connect customers without a standard credit check (iSelect, energy comparison service).
• Electric Kiwi also offers a prepay option, though its main plans are postpaid (Canstar).

“Prepaid power is commonly presented as a solution for customers with bad credit or a history of financial difficulty.”

Powerswitch, NZ’s independent power comparison site

The pattern: what a provider calls “prepaid” doesn’t guarantee they skip a credit check — the distinction matters at sign-up.

Which energy companies don’t do credit checks?

Three main names in New Zealand offer prepaid power, but only two skip the credit check entirely.

Prepaid power providers in New Zealand

Three companies, two credit-check-free options – that’s the landscape.

The implication: only two of the three major prepaid providers in NZ genuinely bypass credit history, making provider choice the deciding factor for many.

No-credit-check retailers in Australia

• iSelect connects customers to energy retailers that may not require a credit check (iSelect).
• BeMoved offers electricity plans with no credit check and no deposit in some areas (BeMoved, energy broker).

How can I get electricity with bad credit?

Getting connected takes a few deliberate steps, but it’s straightforward once you know the route.

Step 1: Check your credit report

• Review your credit report for errors. You can request a free copy from bureaux like Centrix or Illion.
• If you find mistakes, dispute them – they could be dragging your score down.

Step 2: Compare prepaid and no-credit-check plans

• Use Powerswitch in NZ or iSelect in Australia to filter for no-credit-check plans.
• Check top-up fees, minimum top-ups, and whether a smart meter is required.
• Consider deposit-based plans if you prefer postpaid and can afford the upfront cost.

Step 3: Apply directly or through a broker

• Apply online – many providers process applications within minutes.
• If declined, the provider must explain why and can direct you to financial mentoring (Powerswitch).
• You can also ask a guarantor to co-sign, or agree to a higher deposit.

“Even with low credit, an energy retailer can be found. We help customers compare options that don’t rely on a credit score.”

iSelect, Australian energy comparison service

What this means: the process is not complicated — check your report, compare options, and apply. Most people can get connected within 24 hours.

Do all energy companies do a credit check?

No, they don’t. Credit checks are common for postpaid plans, but prepaid and some no-deposit plans skip them.

Why do some companies check credit?

• To assess the risk of non-payment on postpaid accounts.
• A lower score may lead to a higher deposit or decline.

Are there exceptions?

• Prepaid plans by definition don’t extend credit, so many providers skip the check.
• In New Zealand, Globug and Wise are explicitly no-credit-check (Canstar).
• In Australia, iSelect and BeMoved offer plans that don’t require a standard credit check.

The catch: the label “prepaid” is not a guarantee — you need to verify the provider’s policy before applying.

What’s confirmed and what’s unclear

• Confirmed: You can get electricity with bad credit (Powerswitch). Prepaid power is available in NZ without a credit check (Canstar). Negative credit items fall off after 7 years (Canstar).
• Unclear: Whether all no-credit-check plans are available nationwide in Australia. Exact deposit amounts for each provider. Which US-based options exist (this guide focuses on NZ/AU). Whether a credit score of 600 is uniformly considered poor across all providers. Whether prepaid plans from Contact Energy truly avoid credit checks (the provider states they run one).

“Power companies should consider whether a bad credit rating stems from historical financial pressure, and whether the customer is working with a budgeting service.”

Powerswitch, NZ’s independent power comparison site

“Globug requires no bonds or credit checks to join its prepaid electricity service.”

Canstar, NZ financial comparison site

The implication: For New Zealanders with bad credit, the path to affordable power is clear: choose a prepaid provider like Globug or Wise to avoid credit checks, or explore no-credit-check options in Australia through iSelect. The alternative – paying higher deposits or missing payments – only worsens the situation.

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