Set up electricity, gas, water and internet

Utilities in the United States are private companies that extend you credit — they deliver the service first and bill you a month later. That is why a power company runs a credit check before turning your lights on, and why a new arrival with no credit file is routinely asked for a deposit that a neighbour with the same job is not.

Set up before

The day you move in — some need several days' notice

Typical deposit

$100–$300 per service, refunded after 12 months of on-time payment

You will need

Lease, photo ID, and usually an SSN or ITIN

Help available

LIHEAP for energy bills, Lifeline for phone and internet

Find out what you are actually responsible for

Before calling anyone, read the lease. In some buildings water, rubbish collection and heating are included in the rent; in others every meter is yours. Electricity is almost always the tenant's. Ask the landlord which companies serve the address — for electricity, gas and water there is usually only one, chosen by geography rather than by you.

Then call each company yourself and open an account in your own name from the move-in date. Never rely on the previous tenant's account being transferred, and never let a landlord keep a utility in their name while charging you for it — that leaves you with no billing history and no way to dispute a charge.

The deposit, and how to avoid paying it

Most utilities waive the deposit if you can show one of the following:

• A letter of credit from your previous utility company in another country, showing 12 months of on-time payment. Many U.S. providers accept these; ask before you assume they do not.
• A guarantor who already has an account in good standing with that company.
• Prepayment, on providers who offer a pay-as-you-go meter.

Where a deposit is unavoidable, ask two questions: when it is refunded, and whether it earns interest. In most states it comes back automatically after a period of on-time payments, and several states require interest to be paid on it.

Internet and phone

Internet is the one utility where you usually have a genuine choice, and the advertised price is rarely the price. Ask specifically about the promotional period and what the rate becomes afterwards, equipment rental fees, whether there is a contract with an early termination charge, and whether a data cap applies.

Buying your own modem and router instead of renting typically pays for itself within a year.

Help with the bills

LIHEAP is the federal energy assistance programme, run through your state. It can pay part of a heating or cooling bill and, in most states, help in a shut-off emergency. Funding is limited and applications often open in autumn, so find your state's opening date rather than waiting until you are behind.

If you fall behind, call the utility before they call you. Almost every provider offers a payment plan, and many states forbid winter shut-offs entirely. Both of those are far easier to arrange before the account goes to collections, where it will also start damaging the credit history you are trying to build.