Phone, Internet and Power in the USA: Getting Connected Without a Credit History

Phone, internet and power are your first contracts in America, and they all ask for something you don't have yet: a credit history. With prepaid plans, eSIM and the rules on deposits, you still get connected fast, and the bills that follow open the next door for you.

The first contracts you sign in America aren't the big ones. They're phone, internet and power. They decide whether people can reach you in your first week, whether your kids can upload their homework in the evening, and whether the lights come on when you unlock the door to your new home. And right at the start, they ask you a very American question: what does your credit history look like?

As a newcomer, you don't have one. That's no obstacle, as long as you know the ways around it. This guide shows you how to get a US number without a credit check, whether your European phone will work, how to set up internet and power, what a deposit is allowed to cost, and why the hair dryer you brought from home may need a voltage converter in America. To see where these steps fit into your first weeks, check the checklist for your first 90 days.

1Why your first contract asks about your credit

In America, you pay for many services after the fact. The provider delivers for a month and then sends the bill. That's a risk, and the provider measures it against your credit history. The Federal Communications Commission (FCC) spells this out for mobile service: plans billed at the end of the month for service already provided often require a credit check for a new account, may come with a minimum term and can charge an early termination fee.

Power works on the same principle, just with more regulation. In Texas, an electricity provider in the competitive market may ask customers without established creditworthiness for a deposit, but the amount is capped. And for home internet, it depends on the provider whether they check your credit or are happy with prepayment.

So the fix for your first weeks is simple: whatever you pay up front needs no credit history. And whatever you then pay on time helps you build one. If you set up a US bank account and start a US credit history before you move, you arrive without starting from zero.

2Your first number: prepaid, eSIM or contract

For your first few days, a prepaid plan is all you need, either as a SIM card or an eSIM. You pay in advance, usually for a month, and as a rule nobody checks your credit. Some providers only activate the eSIM while you're in the USA, so check before your flight whether your phone is supported, and you'll have a US number shortly after landing. That's more than convenience: your bank, landlord, school and utilities all want a US number, and many services only send their verification codes there.

You can sign a billed contract later, once you have a credit history or the provider accepts a deposit. But it ties you down. The FCC points out that these contracts can come with a minimum term and an early termination fee. Read the terms before you sign.

You don't have to give up your number from home. Many people keep it for their bank back home, for family and for verification codes from services in their home country. Just check what roaming costs you if your old SIM is in the phone while you're in America. A phone with two SIM slots, or an eSIM alongside the physical SIM, solves this neatly.

3Will your European phone work?

In most cases, yes, but not automatically. Two things have to be right. First, the phone has to be unlocked. As the FCC defines it, unlocking simply means turning off software that stops a phone built for one carrier's network from being used on another's. A phone you bought on contract in Europe may still be tied to your carrier; according to the FCC, even fully paid-off phones can stay locked for a short period, around 60 days, to protect against theft and fraud. And if you still owe your carrier money or are still under contract, you often won't get it unlocked until everything is paid.

Second, the phone has to be technically compatible with the US network. The FCC is clear that an unlocked phone won't work on every network, because carriers use different frequencies and technologies. So before you buy a SIM or eSIM, ask the provider whether your model is supported.

If you later want to use your phone with a different US carrier, a voluntary commitment helps: the nationwide carriers have pledged, in their industry association's code of conduct, to publish their unlocking policies and respond to requests, and the FCC refers to it.

4Internet at home

Which internet providers serve your address depends far more on location than in Europe. The options can change from one street to the next. The FCC runs the National Broadband Map for this: it shows which internet services are available at individual addresses across the country, along with maps of mobile coverage. If you work from home, check your address before you sign a lease. For an entrepreneur, a home without fast internet quickly becomes an expensive compromise.

One FCC requirement makes comparing easier: for every internet plan a provider sells, it must show a standardized fact sheet, the Broadband Consumer Label. It has to be clearly visible at the point of sale, meaning on the website next to the advertised plan, in the store and over the phone, and it must be available in English and in every other language the provider advertises in. For large providers, this rule has applied since April 10, 2024; for providers with 100,000 subscriber lines or fewer, since October 10, 2024.

When you sign up, also ask about router fees, the price after any introductory offer, and data caps. If the credit check is a problem, ask about prepayment or a deposit.

5Power: who supplies it, and who decides

Each state decides for itself who supplies your power. In many places, you simply sign up with the local utility. Texas is different. Across large parts of the state, the electricity market is open to competition, and you choose your own provider. The regulator, the Public Utility Commission of Texas, runs the official comparison site Power to Choose, where every provider can list its plans free of charge.

Enter your ZIP code there. If the site finds no plans, your address may be in an area that isn't open to competition; in that case, you sign up with the local utility. Where you do get to choose, don't just compare the price per kilowatt-hour, but also the contract length, the base charge and the early termination penalty. And schedule the start date so the power is on the day you move in.

In Florida, California and New York: ask your landlord or real estate agent which utility serves the address, and sign up in good time. Water, sewer and trash are often handled by the city and sometimes by the landlord.

6The deposit without a credit history

For electricity providers in the Texas competitive market, the regulator has set precise rules on deposits. In total, the deposit may not exceed the greater of two amounts: one-fifth of the estimated annual bill or the estimated bills for the next two months. For new customers, the provider may base the estimated annual bill on the average usage of comparable customers.

You can skip the deposit if you're considered creditworthy. With every provider, you count as creditworthy if you're 65 or older and have no unpaid electricity bill. With the affiliated provider of the local utility (Affiliated REP) and with the Provider of Last Resort, it's also enough if you've been a customer of an electricity provider for the past two years, owe nothing there and paid late no more than once in the past twelve months, or if you have sufficient credit with a credit bureau. Other providers may allow additional routes of their own. And instead of a deposit, someone can guarantee your account with a written agreement for no more than the deposit amount; the affiliated provider and the Provider of Last Resort must offer you this option.

For most newcomers, it comes down to the deposit at first. It's annoying, but predictable. What matters more is what comes next: every bill you pay on time is a building block, and with a credit history, you may not need a deposit on your next contract. To build one deliberately, read US Credit Score for Immigrants and Your First Bank and Credit After the Move.

7Volts, hertz and plugs

US outlets deliver 120 volts at 60 hertz, with plug types A and B: two flat pins, and on type B a round grounding pin below them. Most of Europe runs on 230 volts at 50 hertz, and in Switzerland there is a separate type J plug. For your devices, that means two things.

You will almost always need a plug adapter. Whether you also need a voltage converter is shown on the rating plate or the power supply. Laptops, phones and many chargers handle 100 to 240 volts and 50 to 60 hertz, so they run fine with a simple adapter. Appliances built only for 230 volts, such as many hair dryers, kettles or food processors, need a converter or run at a fraction of their power, and some get damaged. Devices with a motor or a clock can also be thrown off by the different frequency.

Our advice: bring electronics with a wide-range power supply, and buy kitchen appliances and tools new in America. A voltage converter for a kettle is heavy and expensive; an American kettle is neither. Which furniture and appliances are worth shipping in a container is covered in our guide Containers, movers, costs.

8Your bills as proof of address

In America, phone, internet and electricity have a second job: their bills prove where you live. Texas, for example, requires two printed proofs of address with your name and your Texas address for a driver's license, and one of them must show you have lived in Texas for at least 30 days. Bills for electricity, water, gas, internet, cable TV and cell phone are explicitly accepted, as long as they are no older than 180 days. Printed electronic bills count.

That gives you a simple rule: put the contracts in your own name from day one, not your landlord's or a roommate's, and have the bills sent to the address you want on your driver's license. Sign up for electricity and internet in your first week, and after 30 days you can have both proofs of address for your license. What happens next is in our guide Getting a US driver's license, and how to find the apartment is in our guide Renting without a credit score.

In short

• A postpaid phone plan in the US often requires a credit check; to get started, prepaid (including eSIM) is the fast route.
• Your phone from Europe will work if it is unlocked and technically compatible with the carrier's network; even fully paid phones can stay locked for a while.
• The FCC's National Broadband Map shows which internet providers serve your address; every provider must show a label with price, fees and speed at the point of sale.
• In much of Texas you pick your electricity provider on Power to Choose; the deposit without a credit history is capped.
• US outlets deliver 120 volts at 60 hertz through type A and B sockets; in Texas, electricity, internet and phone bills count as proof of address for a driver's license.

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