Texas Credit Services Organization Bond

For credit services organizations in Texas, obtaining a $10,000 is an indispensable requirement for getting registered to operate legally in the state. You need to provide the bond in the official form. If you have more than one location, you would need to post a bond for each of them.

The surety bond guarantees your compliance with Title 5, Chapter 393 of the Texas Financial Code, as set in Section 393.401.

To obtain a Texas credit services organization registration, you have to post a $10,000 bond. This is the bond amount, which is different from your bond premium. It is only a few percents of the required amount. You can expect rates of 1% to 5% if your finances are stable.

The surety bond cost that you have to pay is formulated by examining a number of financial factors. Your surety has to assess the level of bonding risk by considering your personal credit score, business finances, assets and liquidity, and even professional experience. If your application is solid, you can expect to pay less for the bond.

Yes, you can get bonded with us even if you have a low credit score, bankruptcies, tax liens, or civil judgements. Lance Surety Bonds operates its Bad Credit Surety Bonds program for applicants struggling with financial issues.

The premiums for bad credit bonds are in the range of 5% to 10%. The slightly higher price has to compensate for the increased bonding risk. But you should not worry about the costs, as we can still guarantee you a top rate. We work with numerous A-rated, T-listed surety companies, which allows us to shop around for the best matching option for you.

If you’d like to learn more about the way the bonding process works, don’t miss our detailed How to Get Bonded page.

Do you have more questions? Just call us at (877) 514-5146. Lance Surety Bonds’ specialists will happily assist you with your application and queries.

Your Texas credit services organisation bond is not protection for your business. Instead, it is a safety mechanism that safeguards the interests of your customers. if a party suffers damages as a result of illegal actions committed by you, as described in the Texas Finance Code, they can seek a financial compensation via a surety bond claim

The maximum reimbursement that claimants can ask for is the penal sum of your Bond which is $10,000. At first your surety may take over take over the costs. However, you are legally required to fully repay it afterwards. Bond claims can thus turn out to be a serious financial and reputation harm to you rbusiness, so it’s best to avoid them.