Understanding Financing Terms

What Is The Difference Between A Cash Bond And A Surety Bond?

If you are trying to find a way to bail out your friend who is stuck in jail, you could use either a cash bond or a surety bond. Both options offer the same result, but there are some key differences with them. Here are several things you should know about cash bonds and surety bonds and the differences with them.

A cash bond requires no one else

A cash bond is something you pay out of your own pocket, and it is for the full amount of bail the court sets for the person who is in jail and needs to be released. When you pay with a cash bond, you do not have to involve anyone else in the deal. You can simply bring the cash to the jail and pay it to get the person released. You can also use a credit card if you do not have enough cash to bring in; however, you may have to pay an extra fee if you use a credit card.

A surety bond requires a third party

A surety bond, on the other hand, requires the help of a third party, if this is the route you decide to take. A surety bond is a loan you can take out to use to bail a person out of jail, and you will have to pay a fee to get this type of loan. To get a surety bond, you would need to contact a bail bondsman agency as they are in the business of offering surety bonds. A surety bond is also called a bail bond, and getting one is a common method for getting someone out of jail.

Both options require some cash

In either case, both cash bonds and surety bonds require some cash; however, you will need less cash if you decide to borrow money through a surety loan. If, for example, the court sets the bail amount at $5,000, you could get your friend out of jail by either paying the full $5,000 out of your pocket or by paying a 1% to 15% fee, which is $500, to get a surety bond. In either case, you will need money to use, but you will need less with a surety bond.

As you try to figure out how to help your friend get out of jail, you may want to call a bail bondsman for help. This is the best option when you do not have enough cash to use to pay a cash bond.


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