How to Get Bonded with Bad Credit?

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Description:
Getting a new business started will require you to get a license bond. But with a bad personal credit score, you might have your application denied. That’s when a bad credit surety bond program is relevant for you.

Typically a credit score of 650 or below classifies you as a “high-risk applicant.” That’s why you may have your license bond refused the first time around, because not all surety bonds companies will underwrite bonds to applicants with bad credit.

Yet, most people with bad credit can still get a surety bond. In this case it’s best to contact a surety bond agency like Lance Surety Bonds - we have a lot of experience in obtaining bonds for bad credit applicants.

Your credit score is very important to sureties, because they assume a risk on your behalf when giving you the bond. So if you have bad credit, your premiums will be a bit higher. They will range between 5 and 15 percent of the total bond cost. Most likely you won’t need to post collateral, although it may be required in some rare cases.

Besides your credit score, there are also other factors that determine your premiums and your likelihood of getting bonded.
If you have strong liquid assets or strong business or personal financial statements, these can affect your chances of getting bonded and your premium in a positive way.

But there are factors that can negatively impact your premium too. You will be considered a high-risk applicant if you have tax liens, civil judgments or previous bankruptcies. And if your bankruptcy is ongoing, you may have difficulty getting bonded, until it has been discharged.

Theoretically, if you find a co-signer with a high credit score this may decrease your premium. Usually, though, it’s very hard to find a person like that, mostly because of the big financial responsibility involved. But Lance Surety Bonds always tries to find the best deal possible for you, so you don’t have to look for a co-signer.

So don’t worry, it’s not all over for your business, even if you have bad credit score!

Additional resources:
1. Want to know if you can be bonded after a bankruptcy? Visit: bit.ly/3IyeqRa
2. If you want to know how your bad credit will affect your surety bond cost, see bit.ly/3txZWwl
3. If you want to find out more about how to lower your surety bond rate, visit bit.ly/3IAia4O
4. If you want to know more about the whole bonding process, go to bit.ly/3IDVSPn
5. For a FREE surety bond quote, go to bit.ly/3IwWjej