and what you can do to improve it
As a notary public, your financial health plays a significant role in your ability to run a successful business. While many people associate bad credit with personal financial struggles, it can also have a direct impact on your notary business in ways you might not have considered. Here are some key ways bad credit can affect your notary business and what you can do to improve your financial standing.
Did you know that many Signing and Title Companies will not send a notary with a low credit scores on assignments for them? Daniel Lewis, who used to own a signing company called Lewis Signing Service, informed me that he used to have signing and title companies call him and want to check credit scores of the notaries in his database before working with them. They cited the reason was that if the notary has a low credit score, it could create a conflict of interest. The notary may seek to get out of their bad financial situation, if introduced to a viable opportunity.
2. Higher Bond and Insurance Costs
Notaries are required to obtain a surety bond to protect the public, and in most cases, errors and omissions (E&O) insurance. If you have bad credit, insurance companies may see you as a higher-risk individual, leading to increased premiums or even denial of coverage. This can make it more expensive to stay in compliance with state requirements and protect yourself from potential legal issues.
If you plan to expand your notary business, invest in marketing, or purchase new equipment, you may need financing. Bad credit can make it difficult to secure a business loan, and even if you do qualify, the interest rates may be significantly higher. This can limit your ability to grow and take advantage of new opportunities.
Many notaries use business credit cards to manage expenses, purchase supplies, or handle travel costs for mobile notarizations. With a low credit score, you may struggle to get approved for a business credit card with favorable terms. Instead, you could be stuck with high-interest rates or be forced to use personal funds, which can blur the lines between your business and personal finances, creating a liability risk.
If you’re a notary who wants to work from an office instead of a home-based setup, landlords often run credit checks before approving lease agreements. Bad credit could result in higher security deposits, stricter lease terms, or outright denial, making it harder to secure a professional workspace.
If you’re dealing with bad credit, don’t panic—there are steps you can take to rebuild your financial health and protect your notary business:
Work with a Credit Counselor: If necessary, seek professional guidance to develop a plan for improving your credit score.
Bad credit doesn’t have to define you or your notary business, but it can create unnecessary hurdles if left unaddressed. By proactively managing your credit and making smart financial decisions, you can ensure that your business remains stable, professional, and positioned for success. Take control of your financial future today and watch your notary business thrive.
Jocelyn Waters is a seasoned Notary Public, Escrow Agent, and Certified Loan Signing Specialist based in St. George, Utah. With over 17 years of experience, she has successfully conducted more than 25,000 mortgage closings and real estate transactions, along with over 15,000 general notarizations, including wills, trust documents, powers of attorney, and auto loan purchases.
Beyond her notarial work, Jocelyn is a financial planner and real estate investor. She is also the co-author of "Amplify Your Notary Income," a guide aimed at helping notaries expand their business and increase their earnings. In her personal life, Jocelyn enjoys mountain biking, pickleball, traveling, hiking, camping, and boating. She is a mother of two and is a wonderful wife.
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