Get An Instant Quote on Arizona Public Service Company Utility Deposit Bond Now
In Arizona, when you sign up for utility services like electricity with the Arizona Public Service Company (APS), you might be required to pay a security deposit. This deposit serves as a guarantee for the company in case you fail to pay your bills. However, there’s an option that can help you avoid paying the full deposit upfront – the Arizona Public Service Company Utility Deposit Bond.
Let’s break it down into simple steps:
The Arizona Public Service Company Utility Deposit Bond offers a practical alternative to paying a cash deposit upfront when signing up for utility services with APS. By purchasing a bond from a surety bond company, you can save money, preserve cash, and simplify the process of getting your utilities connected. However, it’s crucial to weigh the costs and responsibilities associated with the bond before making a decision. Understanding how the bond works and its implications can help you make an informed choice that meets your needs and financial situation.
The Arizona Public Service Company Utility Deposit Bond is a type of surety bond that acts as a financial guarantee to APS. Instead of paying the entire security deposit in cash upfront, you can purchase this bond from a surety bond company. The bond assures APS that if you fail to pay your utility bills, the surety bond company will cover the outstanding amount, up to the bond’s limit.
Generally, the premium paid for the APS Utility Deposit Bond is non-refundable. Unlike a traditional security deposit, where you might receive a refund if you meet certain conditions, such as maintaining a good payment history, the premium paid for the bond is typically retained by the surety bond company. This premium is the fee for the financial guarantee provided by the bond, and it covers the risk assumed by the surety bond company.
In most cases, each utility account or property requires its own Utility Deposit Bond. While you may be able to use the same bond for multiple services at the same location, such as electricity and gas, you typically cannot use one bond to cover utility services at different addresses. Each bond is specific to the account it is associated with and provides coverage for that particular account.
Answer: Purchasing a Utility Deposit Bond itself does not directly impact your credit score. However, APS may still conduct a credit check as part of their application process for utility services. Depending on the outcome of the credit check, APS may require a deposit or offer you the option to purchase a Utility Deposit Bond. Therefore, while buying the bond doesn’t affect your credit, the credit check conducted by APS may have an impact.
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