Bad Credit Bonds
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- How much do bonds with bad credit cost?
License & permit and court bonds can be obtained even with bad credit. Like all bonds, the cost is a percentage of the bond amount, but will be more expensive compared to standard markets. Using our estimate tool, you can get an estimate of costs for any bond type.
In most cases, contract bonds cannot be obtained with personal credit issues. Only large contractors with strong business financial statements have a chance to qualify for approval if the owner(s) have credit issues.
- Why does bad credit make me a high risk?
Surety companies use your credit history of handling previous obligations as a tool to assess how you might handle future obligations. Depending on the nature of the risk of the bond, this is often a good reflection of your potential to cause a claim. Exceptions are made for extenuating circumstances, such as medical issues.
- Can I get a bond after a bankruptcy?
Yes. We have access to exclusive programs, including a bad credit bond program, which most other agencies don't. You can get an online license & permit bond quote instantly on our website, even if you have a bankruptcy in your credit history.
It is possible to get a contract or court bond after a bankruptcy, but it must be discharged several years ago and explained in detail.
- Is it possible to get a cheap surety bond with bad credit?
Due to bulk volumes, we write bonds for people with bad credit at lower rates than any other agency. However, most bond programs will still look at credit as a factor for determining the rate, which credit flaws can only affect negatively.
- Can I get bonded with no credit history?
However, small contract bonds cannot be obtained without good credit. Large contract accounts with strong business financials may be able to qualify, even if the owners lack personal credit history.
- Will I qualify for contract bonds with a low credit score?
Typically, no. Smaller contract accounts are based strictly off of personal credit and there are no high risk programs. Larger contract accounts might be able to qualify, but you will need strong CPA business financials.
- I have a tax lien. Can I get approved?
Yes. You can get an online approval for license & permit and miscellaneous bonds.
It is difficult to get approved for court or contract bonds with a tax lien, but it is possible depending on the explanation and amount of liens.
- Do unpaid collections result in a high rate?
Usually, yes. However, it depends on the circumstances and amount of collections. Most underwriters are willing to overlook medical collections or small collections that have been satisfied.
- Does an unsatisfied civil judgment increase the premium?
In most cases, yes. For contract bonds, it may prevent you from getting approved at all. Open public records never have a positive effect on your assessed risk.
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Can I Get Bad Credit Or High Risk Bonds?
Yes, however your ability to get approved will vary depending on the bond type needed. Most can get approved for license & permit/miscellaneous bonds with bad credit, which is made possible by our high risk markets. Apply directly on our website to get an instant approval.
For contract bonds, smaller contractors cannot obtain them with credit issues, as approvals are based solely on personal credit, and there are currently no high risk markets available. Larger contractors can get approved with bad credit. However, strong CPA business financials and experience in the industry are required. Apply on our website to determine if you qualify.
Individuals can obtain court bonds with credit issues; dependent upon the severity of the problems. Applicants with moderate credit issues are able to get approved, but collateral may be required. Most cannot get a court bond with serious credit issues, as approvals are largely credit based. Apply online to see if you qualify for court bonds.
What Is A Bad Credit Or High Risk Bond?
High risk or bad credit bonds are not an actual bond type. These refer to any bonds needed by individuals with credit issues, and are generally used by those unfamiliar with bonding. Surety companies use personal credit as an indicator for the risk of potential bond claims, hence the phrase "high risk".
What Do Bad Credit Bonds Cost?
Costs vary by bond type, and as mentioned above, bad credit bonds are not a bond type. Try our surety bond estimate tool to get a free ballpark price.
License and permit/miscellaneous bond costs are a percentage of the bond amount, which is based on personal credit. Prices will likely increase with bad credit.
Costs for court bonds are also a portion of the bond amount, which is calculated using personal credit and the circumstances surrounding the case, guardianship or estate. Prices will also increase with bad credit, and collateral may be required.
Contract bonds costs are not affected if the applicant has bad credit. Keep in mind, only large contractors with strong CPA business financials and experience will be able to get approved.