Bad Credit Surety Bonds
Channel: Bryant Surety Bonds, Inc.
Date: 2017-09-05

Source: https://bit.ly/3bnSzRX

Transcript:
Bad Credit Surety Bonds

Bob has been told he needs a surety bond for his business (https://bit.ly/3bor36V). He has also heard that personal credit can play a large part in the approval process which has caused him some concern. (https://bit.ly/3BuhjCO)

- My credit is not that good but can I still get bonded? Is my bankruptcy going to be a problem? How are my outstanding collections going to affect my ability to be approved for a bond?
- It's true that underwriters will look at your personal credit and that it can have a substantial result on the premium you pay. In fact, in some circumstances it can even cause your application to be declined.

Bob has called a few local agencies and searched the internet for answers. But it seems to be getting conflicting information everywhere he goes.
- There are two easy answers for some of the confusion.
1. First, not all agencies are able to place high risk applicants. Bond only agencies have the industry know-how, connections and access to specialty and exclusive markets that typical all-in-one insurance agencies do not.
2. Second, there are three types of bonds: contract, court and commercial bonds. And each is affected differently by bad credit.
Unfortunately, we don't have any high risk markets for contract bonds such as bid, performance or payment bonds.
High risk applicants for court bonds can typically get an approval with very little variation in rate. The joint control with a lawyer is typically a condition for this approval.

- But my bond is a license bond! That's a commercial bond, right? (https://bit.ly/3zt84Qr)
- Correct! And great news - there are several high risk markets available for commercial bonds like Bob's. In fact, 98% of commercial applicants can get an approval despite credit issues. (https://bit.ly/3bnSzRX) The two biggest causes of declination are open bankruptcies (though a closed bankruptcy is fine) and late child support payments.

- Outside those two things, what's considered high risk?
- Typically credit scores below 650, open collections, civil judgements and tax liens can place you in a high risk market. 

The best way to determine your ability to be approved and to find your exact rate is to apply for a no obligation quote: https://bit.ly/3JlHDRu 

If you have questions about the application process, watch our next video and check out the additional resources below.

Additional resources:
1. What is a Surety Bond: https://bit.ly/3bor36V
2. How Much Does a Surety Bond Cost: https://bit.ly/3bmxR55
3. How To Get Bonded: https://bit.ly/3BuhjCO
4. Startup Auto Dealers – Bad Credit and Surety Bonds Explained: https://bit.ly/3QbtIzt
5. Surety Bond Rates - Bad credit surety bond rates: https://bit.ly/3vAwJlg 
6. Surety Bonds FAQs: https://bit.ly/3Q3vsuK
7. How Your Credit Score Can Affect Your Surety Bond Cost: https://bit.ly/3OVRhLE