If you have less than perfect credit and need to get a license bond, you have come to the right place. Lance Surety Bonds specializes in getting our customers approved regardless of personal credit score. We have worked with some the top bonding companies in the country to develop a variety of exclusive bad credit bond programs. We are confident in our ability get you bonded quickly, without the hassle. Our agents will shop around our markets to find you the lowest possible quote, which will save you money!
Questions about Bad Credit Programs
What is considered “bad credit”?
In the surety industry, a FICO score of below 650 is considered bad credit, or non-standard. If you have a solid FICO score (650+), but have adverse public records on your credit report, such as unpaid tax liens or civil judgments, your application may be considered “high risk” as well.
How do I get bonded with bad credit?
First apply for one. After the application is approved, your agent will let you know how much your bond premium costs and give you a contract with a bonding company. Once you pay your premium and sign the contract, you will receive your bond. The only difference between getting bonded with bad credit and stellar credit is the price you are quoted at will tend to be higher. To learn more, visit our page on The Bonding Process.
What will my bond cost if I have bad credit?
When you purchase a surety bond, you pay an annual premium, which is a percentage of the bond amount. Typical premium rates for customers with poor credit can range from 5-15% of the bond amount. To learn more, view our page titled “What does a surety bond cost?“.
If I have bad credit, how can I lower my rate?
While our agency offers instant online quotes based solely on owner personal credit, it is possible to lower your surety bond rate by providing additional information. For example, if you have strong liquid assets and can provide cash verification, that could be used to strengthen your application. Strong business and personal financial statements can also be considered in determining your rate.
If my credit improves, will my renewal rate be lowered?
Yes, a higher credit score can certainly help to lower your renewal rate. However, a better score does not guarantee a lower rate. In addition to FICO score, renewal premiums will also depend on collections and public records on your credit report, and updated surety underwriting guidelines for your specific bond type.
Can I get bonded if I have an open Bankruptcy?
Unfortunately, we cannot bond customers with open bankruptcies. However, once a bankruptcy has been discharged we should be able to get you approved. The further in the past your bankruptcy was discharged, the better your chances will be at getting a lower rate.
Will using a strong cosigner help lower my rate?
We try to offer the lowest possible bond quotes without the need for cosigners. It can be very difficult to get a person who is not an owner of a company to indemnify for that company’s surety bond, as they can assume a large amount of risk if a claim arises. However, if an individual with strong personal credit agrees to cosign on your bond, we can consider incorporating their personal information in the underwriting process. In certain cases, this can help to lower the premium amount.
Will I have to post collateral?
No. With very rare exceptions, our bond approvals do not require collateral. With our exclusive bad credit programs, we are able to offer quotes with just an annual premium requirement.