How Surety Bond Rates Are Calculated
Most surety bond rates are calculated based off your credit score. Depending on your credit score, you might pay anywhere between 1-15% of the total bond amount.
That’s right; you do not have to pay the full bond amount to get bonded.
Standard surety bond rates run from less than 1% to 3%, while rates for higher-risk companies and individuals run from 4% to 15% of the total bond amount.
Here’s a chart to help you understand how much you’d pay for a bond based on your credit score:
Note that a good surety bond company will have bad credit options.
How to get the Best Surety Bond Rate
To get the best surety bond rate, you need to have a history of success, so that the surety bond company has confidence that you will not need to use the bond.
Beyond Surety Bond Rates
- Ask for references.
- If you’re a new company, ask them about their history working with customers like you.
- Ask for testimonials from past clients.
- Although you don’t want to default on the bond, look at the options provided if the worst does happen.
- Can you re-bid, or bring in a replacement contractor?
- How does their bond claim process work?
Surety bond rates depend on many different factors that revolve around your company’s history and financial background.