How Much Does a $5,000 Surety Bond Cost?

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A $5,000 surety bond can cost as little as $100 for applicants with a good credit score, or go as high as $500 for applicants with bad credit.

As you can see in the image above, premiums for applicants with good credit are no more than 2%. Costs can go as high as 10% for applicants with a credit score lower than 549. Remember, however, that these are only estimates. Premiums can vary based on each applicant’s information provided to the surety underwriter.

Factors Determining the Cost of Your $5,000 Surety Bond

The cost of a $5,000 surety bond can vary based on several key factors specific to the applicant and the requirements of the bond. Understanding these factors can help you better estimate the price of your bond and explore ways to reduce it. Here are the primary determinants:

1. Credit Score: One of the most significant factors in determining the cost of your $5,000 bond is your credit score. Applicants with higher credit scores often benefit from lower premium rates due to the perceived lower risk of default. For a ballpark estimate based on your credit score, you can consult the table below:

   

   

   

2. Bond Type and Terms: Different surety bonds carry different obligations and levels of risk. Therefore, the specific type of surety bond you are required to post can impact your cost.

3. Business Financials: The financial stability of your company significantly influences your perceived risk level as an applicant. Solid financial statements demonstrating profitability and strong assets can lead to more favorable bond rates.

4. Years of Operation: The amount of industry experience you have can influence your bond cost. More experience can translate to lower rates, as it suggests a greater ability to manage industry-specific risks.

5. Business History: The duration and stability of your business are also considered. A longer business history with a record of stability and growth may result in reduced bond costs.

6. Claims History: If you or your business has a history of previous bond claims, this can increase the cost of obtaining a new surety bond. Claims are seen as indicators of risk, and a clean history can be financially beneficial.

For more information on the factors that determine your bond premium, read our surety bond cost guide.

Can I Get a $5,000 Surety Bond If I Have Bad Credit?

Applicants with bad credit are usually subject to more stringent underwriting considerations. However, since $5,000 surety bonds do not pose a huge financial risk for bonding companies, the majority of applicants will be able to get bonded without any problems.

If you work to improve your credit score, and clear past-due items from your credit report, you can gradually see your bonding costs go down.

Most Common $5,000 Surety Bonds

About us:

Bryant Surety Bonds

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.