Credit Service Organization Bonds

What Is a Credit Services Organization Bond?

A credit service organization bond or credit repair company bond is a type of surety bond that ensures the principal, the CSO, will abide by all applicable rules and regulations. The bond protects the licensing agency and consumers in the event of misconduct by the CSO.

Credit services organization bonds are known by several different names, including: 

• CSO bonds
• Credit repair services bonds 
• Credit counseling organization bonds

Credit Repair Surety Bond Requirements by State

Bond amounts and regulations surrounding each license are established at the state level and vary greatly by location. Select your state below for more information about credit service organization bonds in your area:

How Much Does a Credit Service Organization Bond Cost?

The cost of a CSO bond is typically 1–5% of the total bond amount for applicants with good credit. Your exact price will vary depending on your personal and professional qualifications as well as the bond amount: 

• $25,000 or Less Bond Coverage: Premium pricing is strictly based on credit score. 
• $25,000+ Bond Coverage: Costs vary per applicant based on underwriting review. 

Apply now for your personalized bond quote. 

How to Apply for a Credit Services Organization Bond?

To apply for your credit repair bond, call SuretyBonds.com or fill out our quick online application form. You’ll need to provide the bond amount as well as basic information about your company and its owners.

No matter your financial standing, SuretyBonds.com will search our nationwide provider network to find the lowest available quote within one business day. Once you pay your premium, your bond will be executed and shipped to you immediately.

Why Do Credit Repair Companies Need to Be Bonded?

The purpose of a credit repair bond is to ensure a CSO works ethically and under all applicable laws. Each bond issued is a legal contract binding three entities together:

1. The principal (you) purchases the bond and pledges to comply with the terms.
2. The obligee (the state) requires the surety bond to protect consumers from financial loss.
3. The surety (us) issues the bond and provides a financial guarantee for the quality of your professional work.

If the principal breaks the bond terms, the bond amount can reimburse consumers and government agencies for financial losses.

What Qualifies as a Credit Service Organization (CSO)?

A credit service organization (CSO) is a business that charges fees to customers to obtain an extension of credit, improve a person’s credit rating or prevent foreclosure of a mortgage or security agreement.

CSO Bonds vs. Debt Management Service Provider Bonds

CSO bonds are different from debt management service provider bonds. A debt management service provider will purchase the debt and assume all obligations of a debtor for a fee, while a credit service organization aids in extending credit to improve the individual’s credit rating.