Credit sets your rate, within a range
On the $25,000 California contractor license bond, you do not pay the full amount. You pay an annual premium, and that premium runs from about 1% to 15% of the bond. Where you land in that range is set mostly by your personal credit.
Same bond, same face amount, very different price depending on the file. Credit is the lever that moves it the most, though prior claims and history matter too.
Roughly, by credit tier
These are general tendencies, not quotes. They show how the range tends to sort by credit, and every real rate still depends on your actual file and the market that day.
- Excellent credit. Lands near the low end of the range. On the license bond, that can start in the low hundreds of dollars a year.
- Good credit. Low to mid range. Still very competitive, with plenty of markets competing for the file.
- Fair credit. Around the middle of the range. Placeable in the standard market, just at a higher rate than top-tier credit.
- Challenged credit. Toward the upper end, and sometimes a specialty market, but still placeable. A low score means a higher rate, not an automatic no.
Why we won't quote a fake number
Anyone can advertise a rock-bottom rate. Those teaser numbers almost always assume perfect credit and a clean history, which is not most people. Publishing one as if it were your price would be dishonest, and it sets you up for a surprise when the real quote comes back higher.
Real pricing needs your real file: your credit, the bond type, and the market. That is the only way to land on a number you can actually count on. If your credit is rough, see how we handle surety bonds with bad credit, where the whole point is placing the file, not declining it.
Get your real number
Instead of guessing your tier, get the actual figure. Our cost calculator gives you a fast estimate by bond and credit band, and a quote gets you the firm rate underwriting will honor. Either way, the number you see is a real one.