Bad Credit Surety Bond Program

Overview of High-Risk Surety Bonds

Surety providers classify individuals with a FICO credit score of 650 or below as having “poor” or “high-risk” credit. In some cases, even applicants with scores above 650 may fall into the “high-risk” category if they have outstanding tax liens or legal judgments against them.

Why are the rates elevated for high-risk credit applicants? 

Unlike insurance companies that anticipate a certain number of claims on their policies, surety bond companies operate with the expectation of a 0% loss ratio.

Due to these stringent standards, only those with strong credit histories (typically a score of at least 650 or higher) and clean financial records (no bankruptcies or tax liens) qualify for lower bond rates. For individuals who do not meet these criteria, an alternative approach is available.

For individuals with low credit scores or new businesses lacking an established credit history, bonds are issued at higher rates. The rates for such applicants are greater compared to those with excellent credit. Additionally, in order to obtain a bond with a low credit score, a small percentage of cash collateral is typically required to mitigate the associated risk.

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How Can I Request a Bond with Poor Credit? 

To initiate the process, please fill out our bond applicant form. We will reach out to you promptly to furnish an entirely accurate and complimentary quote for your bond. Additionally, we will supply you with comprehensive instructions on how to proceed with the application procedure.