For many surety bonds, your credit score is the single biggest thing that sets your price. Two people can buy the same bond and pay very different amounts. Here is why, and what you can do about it.

Why credit matters

Remember that a bond is a promise, and the bond company covers you if you break it. Then you pay them back. So the bond company wants to know how likely you are to repay. Credit is their best quick guess. Strong credit means lower risk to them, so you get a lower rate.

What a good rate looks like

On many bonds, the price is a small percent of the bond amount. With strong credit, you might pay around 1 percent. With weaker credit, the same bond might cost 3 to 5 percent or more. On a small bond that is a few dollars. On a large bond it adds up fast.

How to pay less

You do not need perfect credit, but a few steps help. Pay your bills on time, since payment history is the biggest factor. Lower your credit card balances before you apply. Fix any errors on your credit report. Even small gains can drop your rate at renewal.

What if your credit is weak

You can still get bonded. Junno Surety works with many markets, including ones that write bonds for weaker credit. Your rate may be higher for now, but you are not stuck. As your credit improves, we re-shop your bond and lower your cost.

The bottom line: good credit saves you money on bonds, just like it does on loans. And if your credit is not there yet, we will still find you a fair quote.

Related guide: See how bond costs work.