Education Center

Videos

Source:Guide to Getting Bonded with Bad CreditDescription: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:

Can you be bonded after a bankruptcy? It depends.

If you want to know how your bad credit will affect your surety bond cost, check outWhat does a Surety Bond Cost?.

If you want to find out more about how to lower your bond cost, seeFinding the Lowest Surety Bond Rates.

If you want to know more about the whole bonding process, here'show to get bonded.

For a FREE surety bond quote,apply online now!

Latest Surety Bond Articles

New Rules for Colorado Businesses Selling Used Motor Vehicles

A recently passed law in Colorado introduces a new way for businesses to sell used company motor vehicles without obtaining an auto dealer... read more

SDDC Now Accepting New Applications to Haul Military Freight

The Military Surface Deployment and Distribution Command (SDDC) is now accepting applications from freight carriers who wish to haul military freight domestically. The... read more

New Requirements for Alabama Fantasy Sports Operators

Alabama recently introduced new rules for fantasy sports operators. House Bill 361 establishes the Alabama Fantasy Contests Act, which brings a strict regulatory... read more

Alabama Doubles the Auto Dealer Bond Requirement

Legislators in Alabama recently amended the licensing process for auto dealers in the state, changing certain criteria and bringing in new types of... read more

Latest Legislative Updates

Mississippi Now Regulates Private Project Contract Bonds

A new piece of legislation which was recently introduced in Mississippi creates a regulatory framework for the use of contract bonds on private... read more

Casinos in Arkansas Are Now Required to Get Licensed and Bonded

Since February 2019, casinos in Arkansas have new policies to comply with, and new rules to follow in order to operate legally in... read more

New Surety Bond Rules for Oil and Gas Wells in Virginia

Legislators in Virginia recently amended the rules for oil and gas well operations in the state. They introduced changes to the surety bond... read more

Mississippi Lottery Retailers to Post a Bond

As of September 1, 2018, the state of Mississippi has introduced its Lottery Law. Senate Bill 2001 was approved by Governor Phil Bryant... read more