Tennessee Credit Services Business Bond Guide
In Tennessee, most credit services businesses must file a $100,000 surety bond to register with the state.
Bond Overview
- Purpose: To ensure credit services businesses uphold state regulations
- Who Needs It: Most businesses offering credit services in Tennessee
- Regulating Body: The Tennessee Department of Commerce and Insurance
- Required Coverage: $100,000
- Premium Rate: Credit-based, starting at 1%
Keep scrolling to learn more about the bonding process.
What Is a Tennessee Credit Services Business Bond?
A Tennessee credit services business bond protects clients from harm due to fraudulent or negligent practices.
The Tennessee Department of Commerce and Insurance (TDCI) requires this type of license and permit bond to register with the state.
How Much Do Credit Services Business Bonds Cost in Tennessee?
Tennessee credit services business bond premiums typically cost 1–5% of the bond amount, based on credit. For example, qualified applicants often pay just $1,000 for the required $100,000 coverage.
Apply below to receive your free, personalized quote.
SuretyBonds.com offers the lowest available rates from our nationwide provider network with no added fees.
How Does a Tennessee Credit Services Business Bond Work?
A Tennessee credit services business bond is a legal contract between three parties:
- Principal: The credit services business purchasing the bond
- Obligee: The Tennessee Department of Commerce and Insurance requiring the bond
- Surety: The provider issuing the bond
Under this contract, you, as the principal, promise to uphold the provisions of the Tennessee Credit Services Businesses Act.
If you break the bond terms, harmed parties can file claims. The surety will validate and pay claims up to the full bond amount. However, you are ultimately responsible for refunding the surety.
Who Needs a Credit Services Business Bond?
In Tennessee, businesses that charge a fee for the following services must register with the TDCI and file a surety bond:
- Helping improve a client’s credit score or history
- Assisting with extensions of credit
Some types of credit service organizations are exempt under TN Code § 47-18-1002.
Alternatively, businesses can submit a $100,000 cash deposit, certificate of deposit or other approved security. However, a surety bond is often the most affordable option, requiring only an upfront premium and no collateral.
How Do I Get a Credit Services Bond in Tennessee?
SuretyBonds.com provides the fastest and easiest way to get a credit services bond. Follow these simple steps:
- Apply Online: Enter your information to receive a free quote
- Pay Invoice: Complete your purchase online or over the phone
- Receive Bond: Receive your official bond form via email
Upon receipt, sign and file the original bond documentation with the TDCI.
How Fast Can I Get My Bond?
SuretyBonds.com issues credit services business bonds faster than any other provider. We process most bond applications same-day. Apply now to receive your free quote.
Can I Get Bonded With Bad Credit?
Yes, you may still be able to get bonded with bad credit. However, poor credit may increase your premium rate.
Apply for a free quote or visit our Surety Bond Cost FAQ page to see how credit may impact your cost.
How Do I Renew My Credit Services Business Bond?
Tennessee credit services business bonds expire annually. When you work with SuretyBonds.com, we’ll send you reminders and a renewal invoice before your bond expires.
To renew, just pay the premium — we’ll do the rest!
How to Open a Credit Services Business in Tennessee
The Department of Commerce and Insurance regulates credit services businesses in Tennessee. To register your business, submit the following documents via the CORE online portal:
- Surety bond form
- Copy of the current client contract
- Payment for the $50 registration fee
There is no renewal fee unless you have an ownership or surety bond change. If so, you must submit a new initial application.
