How to Get a Surety Bond with Bad Credit
Whether you can get bonds with bad credit will depend on the bond type you need and the severity of your credit issues (you can determine if you truly have bad personal credit by reading this guide). It’s important to understand how bonds work and that you’re responsible to pay bond claims. If you have credit issues, surety companies will view you as a higher risk for causing and not paying claims, which is why the term “high risk surety bonds” is sometimes used. You can read our guide to learn how to get bonded and insured.
Getting License & Permit Bonds with Bad Credit
You will be able to get approved for most license and permit bonds even with credit issues. You can apply online to get a firm quote. If you’re just doing research, you can use our surety bond premium calculator tool to get an instant estimate, or learn more about surety bond costs and how they are determined by reading our comprehensive pricing guide. Lastly, you can also select your state from the list below to view all of its bond requirements.
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Can you Get Contract Bonds with Bad Credit?
It’s possible to get construction bonds for jobs such as bid bonds and performance bonds with bad credit. If you’re a smaller contractor with severe credit issues you won’t be able to get bonded through standard markets; you’ll need to use the SBA program. Keep in mind, you’ll be limited to smaller contracts. If you’re a larger contractor with bad credit, you can obtain contract bonds if you provide strong CPA prepared business financials. You can fill out our online application to see if you qualify for contract bonding.
Getting Court Bonds with Credit Issues
Depending on the circumstances surrounding the case or estate, it’s possible to get court bonds with bad credit. However, your credit issues can’t be severe. Items such as large collections, tax liens or civil judgments will prevent you from getting court bonds. You can apply online to determine if you’re able to obtain a court bond.
Why Does Bad Credit Make You a High Risk?
Surety companies use your credit history as a tool to assess how you might handle bond claims if they occur. As mentioned above, you’re responsible to pay claims on your bond including any legal fees. Depending on what the bond guarantees, your credit history is often a good reflection of your potential to cause and pay for claims. Exceptions are made for extenuating circumstances such as medical issues. Some ask “are there surety bonds for bad credit?” No, a bad credit bond type doesn't exist; but there are companies such as ours that are able to get you approved using specialty programs. You can also take a look at the most frequent surety bond related questions here.