Methew Harbor

You might have sometimes heard, “Mr. ABC has been released on $30,000 bail” when the judge releases someone. As it seems, the bail amount is paid to the court on release. But what if someone does not have the money to pay the court?

They will have to stay in jail until the date court has set for the trial; a bail bondsman can help them release them even if they do not have enough money. So, how does a bail bondsman make money when helping defendants release from jail?

Let’s tell you everything about bail money, bail bondsmen, and how they make money.

What is Bail or Bail Money?

When a person is arrested for a crime or fraudulent activity, they are kept in jail until presented in court. Even after the initial presentation in front of the judge, they might set a different date for the trial.

To ensure the defendant does not have to stay in jail through this period, the court allows them to pay a bail amount. It works as a security deposit returned to the defendant if they stay compliant throughout the case proceeding.

The cash bail is forfeited if the defendant fails to appear in court for the trial.

How do Bail Bondsmen Work?

When a person is arrested and the court orders bail, they can submit it in cash, use a credit card to get a cash advance, or get help from a bail bondsman or bail bond agency.

While it might seem like you only require paperwork knowledge to become a bail bondsman, it requires you to be immensely vigilant. If your client does not appear in court during trial, it might be difficult to track them down.

Thus, bail bondsmen and agencies must run a thorough background check to ensure their record and the authenticity of collateral to avoid trouble.

How Does Bail Bondsman Make Money?

When a defendant has to pay a particular bail amount in court and they do not have enough cash, they ask a bail bondsman or agency to post the bail bond on their behalf.

A bail bond is a surety bond provided by the agency or bail agent to secure the defendant’s release from jail. The bail bondsman may prepare a criminal or civil bail bond per need.

A bail bondsman earns money by charging a fee on the bail bond, which is usually 10% of the bail amount ordered by the court.

For Example:

Let’s say the court has set the bail to $50,000 to release John. If John does not have $50,000 to pay to the court, as it is a high amount, he will contact a bail bondsman or agency to post the bail bond on his behalf.

The bail bondsman will ask John for $5,000 (ten percent of the total amount) to post the bond. However, the percentage may vary from state to state.

They secure the rest of the bail amount as collateral, including a car, home, or jewelry. The bondsman may also ask the defendant’s relatives if they do not have enough assets to present to the court.

Moreover, a few states, including Indiana, Kentucky, Maine, Massachusetts, Oregon, Tennessee, and Wisconsin, do not allow bail bondsmen to offer services to defendants. Instead, the court receives ten percent of the bail money through bail bonds.

Do Bail Bondsmen Make Good Money?

The average annual income of a bail bondsman in the US is around $43,400. Emerging bail bondsmen may earn as low as $25,000, which increases as they gain experience. Highly skilled and experienced bail bondsmen make up to $150,000 per year.

At the same time, the annual salary may vary depending on the state, education, certification, experience, etc. Most bail bondsmen make between $39,489 and $48,483 yearly.

As an agency, you can make significant money as the latest data shows the bail bond industry valuing around $1.9 billion in the US. Besides making money from usual cases like felony arrests that give you $1000 as profit per case, serious crimes with high bail amounts can add to the annual income significantly. The premium in cases with high bail amounts, such as a million dollars, have a lower premium, typically 1%; it still comes to around $10,000 for just one case.

How to Start a Bail Bondsman Business?

Start with researching to see if you can be a bail bondsman. Ensure you meet the requirements and take the pre-licensing course before taking the bail bonding license exam. Once you pass the exam, apply for the state license and register your bail bondsman business.

When dealing with new clients, check their background and criminal, employment, and financial history. As a beginner, working with first-time offenders with a high reputation is better as they are more promising.

How do Bail Bondsmen Get Their Money Back?

When the Defendant Does not Appear in Court

In some cases, defendants opt for a bail bondsman to get away with court proceedings and not have to stay in jail.

But what do you do as a bail bondsman if your client does not present in court?

The defendants who fail to appear in court owe the bondsman the full bail amount. They will also have the right to the collateral securing the bail bond.

Yet, most bondsmen stay in touch with their clients and remind them about the trial dates to ensure they visit the court. In case of missing the court date, the judge can issue an arrest warrant for the defendant.

When the Defendant Appears in Court

Well, if the defendant complies with the court orders and attends the proceedings, they will receive the full bail amount posted by the bail bondsman. However, the fee paid to the bondsman is nonrefundable.

Do All Defendants Need a Bail Bondsman?

No, defendants do not need a bail bondsman if they can arrange the money on their own. They may use their credit card given that they can pay back in time. Alternatively, asking relatives to loan money can prevent them from giving extra money to the bail bondsman or agency. However, as most people cannot arrange that sum for the court, they connect to a bail bondsman or agency; some defendants decide to stay in jail until their trial.

Do all Defendants have to Pay Bail?

Every defendant the court orders to pay bail has to. Nonetheless, they can request a bail reduction to the court within five days of the order. The duration may vary for different states and regions.

The Bottom Line

Being a bondsman requires passing a licensing exam to obtain your license. But you can make good money once you are in the business. A bail bondsman earns $43,400 on average in the US, with salaries ranging between $39,489 and $48,483. Beginners usually make between $25,000 and $30,000, whereas the experienced earn up to $150,000. Bail bondsmen earn by taking 10 to 15% of the total bail amount as their fees. The fee percentage may vary in different states.

FAQs

How much do bail bondsmen make an hour?

The hourly pay for a bail bondsman in the US is between $19 and $23, depending on location, qualification, skills, and expertise. However, the average hourly wage is around $21 for bail bondsmen.

How much does a bail agent make in California?

California is one of the highest-paying locations for bail bondsmen. The average salary of a bail bondsman in California is $48,619, while the pay ranges between $44,239 and $54,312.

How much do bail bondsmen charge?

The standard fee of a bail bondsman is 10% of the total bail money, but the amount varies for states. For example, some states do not allow bail agents to charge more than 8%. In other regions, they may charge up to 15%.

Do you get the bail money back?

Yes, the defendant gets the bail money back even if found guilty. However, the court might impose heavy fines depending on the charges.

Methew Harbor

Matthew is a Co-Founder at BusinessFinanceArticles.org. Matthew was a floor manager at a local restaurant in Wales. He lost his job after the pandemic and took initiative to make a team and start the project.

The world of finances has significantly changed in the past two decades, creating a direct effect on the community. Nowadays, personal finances are a critical aspect of everyone’s daily life, and companies are progressing to make money with this. One such organization is the Credit Karma. It offers services to help people manage their finances. Credit Karma has gained immense popularity over the time through free credit reports and free credit score services. The company has a user base of over 100 million and it continues to grow. There are no charges for any service, which raises a question: how does Credit Karma generate its revenue?

There are several ways that the company utilizes to make money, including interchange fees, interest on cash, and referral fees. In this article, we will delve into credit karma’s different revenue streams, how it works, its history, future, and its competitors. By the end of this post, you will get an insight into the financial industry and how companies like Credit Karma generate their revenue.

What is Credit Karma and How does it Work?

Credit Karma is a personal finance company that gained popularity by providing free credit scores to its consumers. Customers can access their credit data at any time, without registering to any credit card. As its credit bureau partners, Credit Karma uses TransUnion and Equifax. The credit information is based on the Vanguard 3.0 model and not on the FICO model. It is a leading fintech company that mainly focuses on making credit data transparent for its clients. Users can sign up for its services by visiting its official website or through its official mobile app on their phones.

After the account setup is complete, users can access their credit scores at any time without any cost. An individual’s credit score indicates if he or she is eligible to access other products and services such as credit cards and loans. Apart from providing credit scores, Credit Karma also displays free credit reports and credit monitoring.

The credit reports include information such as accounts standing on good terms and what percentage of payments are made on time. The report can also notify when an identity theft or fraud is being committed. On the other hand, credit monitoring helps users to stay on top of their scores and monitor any changes that occur in their credit scores.

History of Credit Karma

The company was founded in 2007 and is headquartered in San Francisco. Kenneth Lin founded the company as its CEO along with his partners, Nichole Mustard (CRO) and Ryan Graciano (CTO). Lin got a degree in economics and was always coming up with different business ideas. In 2007, he introduced the idea of developing a personal finance company. Although there were plenty of companies offering the same services as Credit Karma, they had a poor reputation.

In March 2008, Credit Karma was officially launched and gained popularity as it is a platform that provides credit scores for free. Credit Karma continued to expand by assisting in other ways, such as tax calculators, credit monitoring, and personalized financial advice. Today, the company employs more than 2000 people across the United States, the United Kingdom, and Canada. Almost half of the United States uses this platform including over 100 million users.

How Does Credit Karma Make Money?

The company operates on an affiliate business model. Credit Karma makes money through various revenue-generating streams such as referral fees, interchange fees, and interest on cash. Each of these revenue streams is explained in detail below:

Referral Fees

The primary source of the company’s revenue is the referral fees. Although it provides free services, Credit Karma is partnered with an advertising partner that offers financial services such as credit cards and loans. The advertising partner provides credit karma with a referral fee each time the user takes action on any offer. Credit Karma kept working with the same model even though people complained about not liking the in-app advertising feature. Credit Karma keeps its customers satisfied by offering them a collection of free services, including a handy tax calculator and a dispute response. These features enable the users to file complaints in case they feel that the credit bureau devalues their credit score.

Interchange Fees

Credit Karma introduces a brand-new feature of checking accounts for its users in September 2020. This feature is also called ”credit karma money.” This feature issues a debit card to the account holder. This debit card is issued by Visa. Whenever the cardholder pays for something using that debit card an interchange fee is earned by Credit Karma. Visa’s interchange fees usually range between 1.4 to 2.5%. This revenue is shared between Credit Karma and Visa.

Interest On Cash

Like other financial firms and banks, Credit Karma also operates a similar interest-on-cash model. The company uses the cash of its users and lends it to other larger financial institutions such as banks. In return for facilitating the loan, Credit Karma collects a net interest from these financial institutions. In 2019, the company earned approximately $3 billion by using this financial model. It protects its users’ accounts for up to $5 million with FDIC insurance.

Credit Karma’s Future

The company hopes to lead the market with the financial services that it provides. The company processes millions of data points of its users which they can use to improve their market position in the financial industry. Credit Karma aims to introduce new innovative features and financial tools for their users to help them effectively manage their finances.

Who are the Competitors of Credit Karma?

As being the leading fintech company, exclusively known for providing financial services to its customers, Credit Karma has some competitors too. Here are the top companies mentioned that are considered the competitors of Credit Karma:

• Bankrate: This finance company offers financial services similar to Credit Karma.
• Credit Sesame: This company provides loans and savings on credit applications for its users. In addition to that, it also offers its users to utilize free personal finance tools.
• NerdWallet: This is an online platform through which users can get information about their financial status.
• Mint: Users can manage their bills and budget through this personal finance app.

Conclusion

Credit Karma has become a famous personal finance company with over 100 million users. It provides financial services that are free of cost but has other ways to make money, including receiving referral fees from advertising partners, interchange fees by using debit cards, and receiving interest on the cash lent to larger financial institutions. Credit Karma’s ability to collect and analyze financial data has become a valuable asset in the financial industry. Despite having major competitors such as NerdWallet, Mint, Bankrate, and Credit Sesame, Credit Karma hopes to remain the leading personal finance setup in the future.

Methew Harbor

Matthew is a Co-Founder at BusinessFinanceArticles.org. Matthew was a floor manager at a local restaurant in Wales. He lost his job after the pandemic and took initiative to make a team and start the project.

Nursing is often the first choice for students looking forward to getting into healthcare and patient care. It is the basic level of being a nurse, and you can improve your stature with time by getting further education. Over 1,343,700 nursing assistants work in the U.S. They work in various medical and senior citizen facilities to help patients with their daily tasks relating to healthcare.

But the question arises, “How much money does a CNA make?”

Keep reading to learn everything about a CNA’s salary, including high-paying states, facilities, and how to increase your earning potential.

What does a CNA do?

Before we get into how much CNAs earn on average, let’s first tell you what a CNA actually does.

Certified nursing assistants care for their patients and help them in everyday activities, including healthcare-related tasks. They also report changes in the patient’s emotional or physical health to help doctors assess the situation better.

CNAs observe the patient’s needs, change bedding, and help them bathe, get dressed, and eat, if required. Furthermore, they answer phone calls and notify other related healthcare workers of emergencies.

Do Nursing Assistants Get Paid Well?

Often students wonder if CNAs earn above the national US average salary. The answer to this question is “no,” but it still does not mean that nursing assistants do not have a good salary. Nursing assistants earn less than the national average salary of $45,760. However, they make more money than the median salary of healthcare support occupations, which is $39,880.

Nursing Assistants or CNAs do not require a professional degree which allows them to work overtime. Federal Law orders employers to pay at least 1.5 times their regular pay when CNAs work over their 40-hour week.

How Much Money does a CNA Make per Year?

According to the Bureau of Labor Statistics, CNAs make a median salary of $30,310 in the USA annually with a $14.57 hourly pay. The salaries range from $23,780 to $41,410 per year. The top ten percent of CNAs make above $44,240, while the bottom ten percent earn $23,880.

Factors that Affect Your Earning Potential

If one CNA friend has told you a different salary from the other, none of them may be lying. Being a CNA has varying earning potential depending on your qualification, geographical location, and workplace.

Qualification

Certified Nursing Assistant (CNA)

You can become a certified nursing assistant if you have a GED or high school diploma. Next, you must enroll in a state-approved training program and receive the certification or license after passing the competency exam. In most states, you have to obtain 70% – 75% in the exam’s first part of the exam and 100% in the second part to receive the certificate.

Licensed Practical or Licensed Vocational Nurse (LPN/LVN)

Being an LPN or LVN requires an approved educational program typically spanning one year. The program teaches you to administer basic patient care, including changing bandages, inserting catheters, etc.

Registered Nurse (RN)

Registered nurses previously required an associate’s degree in nursing. But now, you need a four-year bachelor’s degree in nursing (BSN) to get an RN license. In case you already have an associate’s degree, you can get the license in 12 to 14 months through the RN-to-BS Completion Program.

Workplace

General Medical and Surgical Hospitals – $35,190 

Certified Nursing Assistants working in general medical and surgical hospitals make around $35,190 on average. They work under a registered nurse to care for patients with a wide range of needs.

Nursing Care Facilities – $32,090

Nursing care facilities, also known as skilled nursing facilities, have residents needing help with their day-to-day tasks. As a CNA at a nursing care facility, you can make $32,090 on average.

Home Health Care Services – $29,930

If you do not prefer working full-time at a facility, you can opt to be a home healthcare service provider. Home healthcare service providers visit patients’ homes to help them with their medical and daily-life tasks.

Experience

One Year or Less

Salaries may vary depending on the state and facility you work in. However, on average, most CNAs with a working experience of one year or less are paid $12.32 per hour.

One to Four Years

Furthermore, as CNAs work in different areas and get more experience, they can make up to $12.76 per hour.

Five to Nine Years

With over five years of experience, certified nursing assistants are considered a pro, and their hourly wage rises to $13.38.

Ten to Nineteen Years

Certified Nursing Assistants can expect varying wage increments during different career stages depending on the state and working facility. Most CNAs receive $13.97 per hour when they have more than ten years of experience.

Over Twenty Years

After working as a CNA for over twenty years, you can expect $14.60 per hour.

You may stay a CNA and receive the increment over time with an increase in experience or get further training to become an LPN/LVN or RN for better income.

Location

High Paying States

The Bureau of Labor Statistics shows that CNAs in Alaska make the highest average pay compared to other states in the US. After Alaska, New York is the second highest-paying, followed by California, the District of Columbia, and Oregon.

Low Paying States

On the other hand, Puerto Rico has been named the state with the lowest average salaries for certified nursing assistants. Other states with low average hourly and monthly pay for CNAs include Alabama, Guam, Arkansas, and Oklahoma.

Annual Wage by State

How Can I Increase My Earning Potential?

Receiving further education to become a licensed practical or licensed vocational nurse (LPN/LVN) or a registered nurse can help you increase your income. Registered nurses make the highest average among certified nursing assistants, licensed practical or licensed vocational nurses, and registered nurses.

Moreover, you can also receive certifications for oral care aides, bathing aides, oncology aides, and restorative aides to advance in your nursing career. The most high-paying choices are pediatrics, geriatrics, cardiology, and psychiatry aides.

Other high-paying skills for certified nursing assistants include telemetry, surgical, and ICU skills. Training in these domains can help manage patients with special needs, thus allowing CNAs to make better income.

How can CNAs Make Additional Money?

Besides working overtime and obtaining further qualifications, consider talking to your employer about shift differentials. Most employers offer shift differentials if you work on weekends, holidays, or evening shifts; you can earn 1.5 times the standard hourly rate in your workplace.

Scope of CNAs in the Coming Years

Reports by the Bureau of Labor Statistics (BLS) show that the overall employment rate for nursing assistants will grow by 8% from 2020 to 2030, opening around 192,800 new jobs in the next decade with a projected 4.7% growth rate.

The pay for CNAs increases approximately 3.5% more after four years, 8.6% more after five years, 13.4% more after ten years, and 19% more after twenty years. So, there is no second thought in deducing that there will be plentiful jobs for CNAs and other nurses in coming years.

Where to Find CNA Jobs?

You can find CNA jobs through your seniors or hospital websites by visiting their “careers” option. But if you are unable to find any leads through these channels, some other job-searching portals include:

• Indeed
• ZipRecruiter
• SimplyHired
• Monster
• Snagajob
• mycnajobs.com
• Cnaclassesnearme.com

Further Options After Becoming a CNA

Once a CNA, you can advance into your career by obtaining further certifications and licenses to increase income. Some of the most popular career choices for certified nursing assistants include registered nurse, family nurse practitioner, licensed practical nurse, medical assistant, certified medical assistant, certified nurse’s aide, nursing home administrator, and geriatric care manager.

The Bottom Line

A certified nursing assistant does not make the highest money as a healthcare professional, but nursing is the highest paying among all patient support healthcare domains. CNAs make a median salary of $30,310 in the USA annually with a $14.57 hourly pay. The top ten percent of CNAs make over $44,240, while the bottom ten percent earn $23,880. However, the salaries may vary according to geographical location, qualification, experience, and workplace. You can earn more as a CNA by improving your qualification, acquiring high-paying skills, and working in a better-paying workplace.

FAQs

How much does a CNA make per hour?

The average hourly pay for a CNA in the US is $16.04 an hour. However, the hourly wages may vary from state to state.

How much CNA makes an hour in Florida?

If you are just starting as a CNA in Florida, you can make $17.98 per year. CNAs with 3 to 5 years of experience earn $18.93, up to 9 years of working experience get $19.41, and nursing assistants with more than ten years of experience make $21.39.

How to become a CNA?

Becoming a CNA requires completing a 105-hour state-approved Nurse Aide training program followed by the written and skills competency evaluation to receive the license.

How much money does a CNA make in Kansas?

If you have just received your CNA certification in Kansas, you can earn $17.60 until you have three to five years of experience. CNAs with 3 to 5 years of experience make $18.53, those with 6 to 9 years of experience earn $19.00, while you may make as much as $20.94 per hour with more than 10 years of experience.

Methew Harbor

Matthew is a Co-Founder at BusinessFinanceArticles.org. Matthew was a floor manager at a local restaurant in Wales. He lost his job after the pandemic and took initiative to make a team and start the project.