What does bad credit mean to surety companies?
It is a common belief that its impossible to achieve a bond with bad credit. However, it is in fact possible to get bonded. The ability to get bonded with bad credit depends on the type of bond that is desired. Also, the severity of the credit issues come into play. If a person possesses bad credit, surety companies see that as a higher risk for causing claims and for not paying. For this reason, the term “high risk surety bonds” is sometimes used.
In the surety industry, a FICO score below 650 is considered non-standard credit. Or, if there is an unpaid tax liens or civil judgments of record, an application may also be considered high risk.
Is there any good news for people with bad credit?
Yes! There is some good news. A person can get approved for most license and permit bonds even with poor credit. Apply online at our application page to receive a firm quote from one of our agents within 1-2 business days from the time of application. After the application is approved, an agent contacts the client to let them know the price of the bond premium. After the payment is received by the surety company, the bond is executed and the client receives their bond. The only difference between a client with great credit and poor credit is that the price for the quote will be higher for the client with poor credit. Although, if the client’s credit score improves, their renewal rate can possibly be lowered.