HOW MUCH DOES A $25,000 SURETY BOND COST?

The applicant’s credit scores play a vital role in determining the cost of $25,000 surety bonds. Generally, the annual premium clocks around 3% to 10%, and it can be raised rapidly based on the credit score.

HOW TO GET A $25,000 SURETY BOND IF YOU HAVE BAD CREDIT SCORE?

A credit score is a factor in determining the premium payable by the applicant. In case of a bad credit score, the premium increases, as it is perceived, as a greater monetary risk by the surety company. The surety company charges high rates to applicants with low credit scores because such companies are looking forward to reducing the risks, that might be caused by applicants. The rates charged for persons with bad credit scores range from 7% to a maximum of 10%. There are certain exceptional circumstances in which an applicant with a bad credit score can also get a $25,000 surety bond. These cases include late child support payments and open bankruptcies. An applicant can still opt for surety bonds with a bad credit history.

HOW TO CALCULATE $25,00 SURETY BOND COST?

There are various risk factors involved in determining the cost of the bond. The cost of the bonds can vary from one place to another in terms of risks. The operation and the size of the bonded amount, whether it is undertaken by smaller or independent businesses, can also be a factor in determining the cost of bonds. The bond of $25,000 does not cost the same; rather, the above-mentioned factors shall be used in determining the actual costs. An applicant does not need to pay the entire amount. The factors shall also include the applicant’s credit score and history, and in case you are applying for the first time, then the surety company shall run a background check on the applicant to neutralize any potential risks. If the applicant’s credit score is more than 700, then the applicable rates shall be between 1% to 3%. Learn more about how these factors influence bond costs.

MOST COMMON $25,000 SURETY BONDS

1] CONTRACTOR LICENSE BONDS: The following states of the United States of America- Texas, Georgia, and California shall need the contractor to obtain the $25,000 bonds, to mitigate the risk relating to fraud and any misconduct.

2] SELLER OF TRAVEL: The state of Florida regulates travel agencies to acquire a surety bond of an amount ranging between $25,000 to $50,000, depending on the offer they provide.

3] AUTO DEALER BONDS: Auto dealer bonds worth $25,000 are usually required in the states of Massachusetts and Alabama.

4] MORTGAGE BROKER BONDS: To safeguard the interest of property purchasers, many state governments have required brokers to get bonded of at least $25,000 surety bonds.

CONCLUSION:

A surety bond is a legal agreement entered by the constructor and purchaser. The cost of bonds can also be influenced by the state of the industry.