Texas Credit Services Organization Bond

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What is a Texas credit services organization bond?

Before obtaining a license to run a credit services organization in Texas, you must purchase a $10,000 surety bond, according to the Texas Administrative Code. This bond ensures credit services organizations (CSOs) follow the law and abide by industry standards. If a CSO acts illegally or unethically, the injured party may file a claim against the bond – up to $10,000.

Get Your Credit Services Organization Bond:

What does a Texas credit services organization bond cost?

ZipBonds offers this $10,000 bond for only $100 a year. You can purchase your bond online today.

Who needs this bond and why?

The Texas Secretary of State requires all credit services organizations in the state to be bonded (and licensed). Without a license and bond, you can’t legally perform CSO services to the public. Additionally, every business location you operate must post a separate surety bond.

Finance Code 393.302 defines a credit services organization as “a person who provides for the payment of valuable consideration any of the following services…”

  • Improving someone’s credit rating or history
  • Obtaining an extension of consumer credit for someone
  • Giving advice or assistance regarding the first two points

How does a credit services organization apply for registration in Texas?

Follow these steps to register with the Secretary of State.

  • File an application for registration (with the following items included): 1) a proof of security or statement that explains why you don’t need evidence of security and 2) a registration fee of $100.
  • Mail your completed application to Registrations Unit, P.O. box 13193, Austin, Texas 78711-3193. Or, you may deliver your packet to the James Earl Rudder Office Building in Austin (1019 Brazos, 5th Floor). 
  • Renew your registration annually to keep it active.

Frequently Asked Questions

The Texas Secretary of State regulates CSO registration and bonding in the state.

Yes, you must renew your bond (and CSO registration) annually. Ensure you renew your bond and registration before they expire each year so they remain active.

The easiest way to avoid claims is to follow the laws of your state for your industry. The Finance Code specifically lists these acts as unlawful:

  • Promising to “erase” bad credit
  • Promising to extend consumer credit
  • Making/using a false or misleading sales representation 
  • Making a false statement about someone’s creditworthiness to consumer reporting agencies

Other Helpful Resources

How to Get a Credit Services Organization Bond in Texas

ZipBonds offers the fastest and most secure option for getting the surety bonds you need. Our all-digital platform is intuitive and straightforward. Apply online or call us at (888) 435-4191 to speak with an agent. Most of our bonds are approved and processed immediately from our site.


About ZipBonds.com

Founders Ryan Swalve and Zach Mefferd formed the vision for ZipBonds.com when they realized how overly complicated it was to help clients place surety. The frustration of being unable to incorporate the technology they’d used in other insurance-focused projects left them thinking “there has to be a better way.”

Fast forward a couple of years, and that better way is the impetus of everything we do at ZipBonds. We constantly look for innovative ways to improve the bonding process for our clients and agents. Our team comprises individuals who understand all angles of surety – for companies, agencies, and individuals. Incorporating everyone’s point of view to improve the process while simultaneously integrating cutting-edge technology is what sets our business apart.