Poor Credit

[grasshopper]

I admit that I have a history of being late on payments which has lowered my credit score. I have heard that this will cause a higher premium on any bonds that I need but I keep getting denied for even getting any contract bonds. I am willing to pay more money, so why won't anyone offer my a bond?

[Bond Magician]

I admit that I have a history of being late on payments which has lowered my credit score. I have heard that this will cause a higher premium on any bonds that I need but I keep getting denied for even getting any contract bonds. I am willing to pay more money, so why won't anyone offer my a bond?

Unfortunately, we do not offer a high-risk type of program for contract bonds. An applicant must have a decent credit score and no negative items (example - late pays, open collections, civil judgements, tax liens) in order to qualify for obtaining contract bonds. Contract bonds are underwritten differently than commercial bonds are, and there are many factors involved.... You may be able to obtain a contract bond with less-than-perfect credit, but we are not aware of anyone specifically.

[grasshopper]

What are some of the specifications that go into determining an approval for somebody with credit that isn't terrible but also isn't amazing? Do bankruptcies after seven years still work against me? What if I own property or have a mortgage?

[Surety Queen]

What are some of the specifications that go into determining an approval for somebody with credit that isn't terrible but also isn't amazing? Do bankruptcies after seven years still work against me? What if I own property or have a mortgage?

Homeownership is definitely a factor. We are finding recently that what people think of as "Bad Credit" may still qualify for contract bonding. Older BK's or small collections may not matter any more. The best way to find out is to submit a Fast Track application and see if you qualify.

[Bond Magician]

Homeownership is definitely a factor. We are finding recently that what people think of as "Bad Credit" may still qualify for contract bonding. Older BK's or small collections may not matter any more. The best way to find out is to submit a Fast Track application and see if you qualify.

So.. owning a home/having a mortgage will help even if the applicant's credit isn't squeaky clean?

[Surety Queen]

So.. owning a home/having a mortgage will help even if the applicant's credit isn't squeaky clean?

Absolutely! It's definitely something that Surety looks at. I've been surprised lately with what has been approved. So, give it a try!