Pawnbroker Bond

Fast Approvals – Low Rates – All 50 States!
  • Required of pawnbrokers and pawn shop owners
  • Required by many states when issuing pawnbroker licenses
  • Guarantees that pawnbrokers comply with state regulation
  • Protects the state and public from dishonest pawnbrokers
How to get bonded
  • Apply Online
    Fill out our online application form.
  • Get Approved Instantly
    You will be sent your quote in minutes.
  • Pay and ship your bond
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Pawnbroker Bond Overview

The pawnbroker bond is a type of surety bond that pawnbrokers may be asked to obtain upon applying for a pawnbroker license. Usually, the bond must be submitted to the local Department of Consumer Affairs or Department of Consumer Credit. Among others, California, South Carolina, Mississippi, Oklahoma, and Oregon require pawn shop owners to obtain a license.

The pawnbroker bond guarantees that pawnbrokers will handle the property pledged by individuals to whom they’ve given loans in a careful and honest way. It also means they will comply with all state rules and regulations that govern their business.

Effectively, this makes the pawnbroker bond an agreement between the pawnbroker (the bond principal), the state (the obligee), and the surety bond company which issues the bond and vouches for the broker’s honesty and reliability.

The backing of the bond works like an extension of credit. If a pawnbroker violates state statutes by acting dishonestly and unfairly, a claim can be made against their bond by the bond obligees. The surety is then prompted to respond to the claim, and potentially to compensate claimants. In return, the pawnbroker must then compensate the surety for its backing of the bond. Claims can be costly and complicated affairs, which is why pawnbrokers should always try to avoid them.

Look at the section below for further details about how much these bonds cost, and how to apply for yours.

Pawnbroker Bond Cost

The cost of your bond depends on the amount of the pawnbroker bond as mandated by state legislation. For example, in South Carolina and Oklahoma pawnbroker bonds must be in the amount of $5,000, while Mississippi pawnbrokers must post a $10,000 bond.

The cost of obtaining one of these bonds is a percentage of the total amount. When you apply for your bond, the surety company which backs it will set a rate for your bond based on your personal credit score, as well as other factors, such as:

  • Your financial statements
  • Your personal assets and liquidity
  • Your previous industry experience

Personal credit score is the most important determinant of the cost of your bond. The higher your score, the lower your cost. Applicants with a very high score can expect to receive their bond at a rate of 0.75% - 2.5% of the total bond amount, or for as little as $100.

By applying for a bond with Bryant Surety Bonds you can further lower its cost. All of our surety partners are A-rated and T-listed companies, providing us with access to exclusive rates on all bonds. By getting your bond with us, you’ll obtain a bond that’s underwritten by the best in the industry.

If you’d like to get your bond now, submit a surety bond application form and we will contact you shortly with your free bond quote. You can always call us at (866)-450-3412 to receive further information and inquire about the pawnbroker bonding requirements in your state.

Bad Credit Bonds

Don’t worry if your personal credit score is not all that great. Applicants with a low credit score can obtain a pawnbroker bond just as easily as those with a higher score, thanks to Bryant Surety Bonds’ Bad Credit Program.

Bonds under this program are offered at a slightly higher rate, between 2.5% and 10% of the total amount. The companies providing the bonds are the same top companies that issue all the bonds we underwrite for our applicants.

The program is meant to enable applicants with lower credit scores to do business, and help them improve their credit score over time.

Pawnbroker License: Application and Renewal

There are no standard nationwide requirements for becoming licensed as a pawnbroker. Each state has its own set of requirements which are often similar. Before applying, make sure to check with your state licensing body about the particular requirements to become licensed as a pawnbroker. Here’s what you may be required to do when applying:

  • Submit completed pawnbroker application form
  • Pass an educational course
  • Pass relevant pawnbroker examination
  • Provide copy of criminal background check
  • Provide set of fingerprints
  • Pay some or all of the following fees: applications, licensing and examination fee
  • Post a pawnbroker bond

How to Get Your Pawnbroker Bond

Go ahead and apply for your pawn broker bond now, by filling in our online surety bond application. We will get back to you with your free bond quote within a short amount of time, as processing these bonds doesn’t take long.

You can always reach us at (866)-450-3412 to speak to one of our bond professionals concerning pawnbroker bond requirements in your state, bond cost and other bond-related issues. Don’t hesitate to call us!