Overview of Tennessee Credit Services Business Bond Requirements

When applying to register a credit services business in Tennessee, applicants must provide a $100,000 credit services organization bond.

Why do I need a bond?

When you get bonded, you agree to comply with all the provisions of the Credit Services Business Act and all rules that are adopted under it.

If you violate these rules and cause damage to anyone, an action can be brought against your bond by such persons in order to retrieve compensation.

When a claim is filed against your bond, your surety will determine its validity and the amount of compensation that it may need to extend, depending on the severity of damages.

Under the bond agreement, compensation extended by the surety to claimants may be as high as the full amount of your bond.

To find out more about how bonds work and why they are a registration requirement for businesses, see our ‘What is a surety bond' guide!

Start your surety bond application today! Why us?
  • The lowest possible rates
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  • Access to specialty programs, not available to small agencies

In the sections below you can learn more about the cost of this bond, the nature of bond claims, and how to apply to get bonded.

If you want to know more about the bonding requirements for credit services businesses in Tennessee, call us at (866)-450-3412!

How Much Does The Tennessee Credit Services Business Bond Cost?

Every bond has a certain amount. This amount is the maximum possible amount of compensation guaranteed to claimants who bring an action against the bond.

The cost of your surety bond, also known as your bond premium, is the amount of money you need to pay to get bonded. This cost is determined by the following factors.

Factors that determine your bond premium

Your personal credit score is the factor that has the greatest influence on your bond premium.

Those applicants who have scores of 700 FICO or more are typically offered a rate on their bond between .75% and 1.5% of its total amount.

Applicants whose scores are slightly lower, yet still considered “good", are usually offered a rate between 1.5% to 5%.

Finally, applicants with low or “bad" scores usually get bonded at a rate between 5% and 15% of the bond amount.

While it is important, credit score does not exhaust the type of information that sureties want to review when you apply. When getting bonded, it is likely that the surety will also request more information about your such as:

  • Personal and business financial statements
  • Fixed and liquid assets
  • Work experience and record

Want to get an estimate of the cost of your bond? See the table below!

Tennessee Credit Services Business Bond Cost Based on Credit Score

License type

Bond Amount

Credit Score
Above 700 650-699 600-649 Below 599
Tennessee credit services business $100,000 $750-$1,500 $1,000-$2,500 $2,500-$5,000 $5,000-$7,500

* The table provides a bond cost ballpark estimate based on the applicant's credit score. Actual bond prices can differ due to a number of factors. For an exact quote, please complete our online application. It's fast and 100% free!.

What Gives Rise to a Bond Claim?

Under Tenn. Code Ann. § 47-18-10, also known as the state Credit Service Business Act, this bond is intended to provide protection to customers of credit services businesses.

If such a business violates the provisions of the Act, such as the obligations it has under the Act, anyone who suffers a loss due to the violation may file a claim against the bond. The bond claim functions as security for customers that they have legal recourse against the licensee.

The surety that backs the bond is then obliged to investigate the claim - whether it is reliable and what amount of compensation is sought by claimants. If the claim is legitimate, the surety must compensate claimants in a sufficient amount but only up to the total amount of the bond.

In return, once claimants are compensated, the bonded credit services business must reimburse the surety in full. This requirement is a standard condition of every bond agreement because the surety's role is only to guarantee for compensation but not to assume final liability.

Due to the large amount of this bond, it is not advised to give rise to a claim. The safest way of steering clear from claims is to strictly comply with the bond's conditions and all legal requirements.

How Can I Get Bonded?

You can request a quote on your bond straight away. Click on the banner below and complete the bond form.

We will get in touch with you shortly to provide you with your quote, along with full details on continuing and completing the bonding process.

Not ready to apply? Then simply get a free no-obligations quote, so you can see our low prices!

If you need more information about this bond, call our bond professionals at (866)-450-3412!

Further Reading


About us:
Bryant Surety Bonds, Inc. is a surety bond agency based in Pennsylvania. Licensed in all 50 states and with access to over 20 T-listed, A-Rated bonding companies, we have the contacts, expertise, and top service to provide you with a hassle-free experience, all while offering competitive rates for your surety bond.