For utility company

[spicyt]

I am being required my utility company (PG & E) to put up a $851 deposit due to my payment history. Believe me, if I could afford a huge deposit, I wouldn't be late on my bills. One option they give is a surety bond. How do I get that and what is the cost? Is it possible with bad credit?

[lifeisgood]

Utility Deposit Bonds are surety bonds required by Utility Companies. Each will have their own specific bond form, so be prepared to provide this when doing your application with the company you decide to use. The amount of the premium will be based upon the credit of the applicant and generally surety companies can write the bond for you if you have a low or unfavorable credit score/history.

[grasshopper]

What is an average premium for a utility bond? Does the premium have to be paid up front or monthly like a regular bill?

[lifeisgood]

Premiums are based upon the applicant's credit - so the premium can certainly vary. The range can be anwhere from 1-15% - depending on how strong OR low their credit is. Premiums are also paid up front, not monthly installments like an ongoing service or credit card.

[Admin]

It should be mentioned that approvals are not only based on credit. Business financial statements are usually considered the most important factor, followed by bond form language, personal credit, & personal financial statements.

All items must be acceptable to land in a standard market (1-3% premium). Failing to meet any of the above criteria will likely put one in a high risk program (10-20% premium).

[grasshopper]

What if I only purchased the company a year ago? Can I use the buisness financials from when I wasn't the owner or will I be penalized for not having more current buisness financials?

[Admin]

Business financials need to be more recent than that. It won't hurt to see the previous year, but older financials alone will not suffice.

You will need to at least generate an internal statement.