Bad credit time frames

[Bond Guy]

I applied for a mortgage broker bond in September. I would like to know if it makes a difference on the bond cost now that my bankruptcy is over 4 years old and the tax lien is paid and released. Would also like to know if a co-signer would make a difference in the premium amount. Thank you.

[Surety Wizard]

Most certainly the amount of time your negative issues on your credit report will effect the bond premium. Your credit will hopefully improve after a Bankruptcy thus showing you are making an effort to correct your financial situation. You still may pay a higher premium for your bond but not as high of a premium with a recently discharged BK.

[Bond Magician]

Originally Posted by Surety Wizard

Most certainly the amount of time your negative issues on your credit report will effect the bond premium. Your credit will hopefully improve after a Bankruptcy thus showing you are making an effort to correct your financial situation. You still may pay a higher premium for your bond but not as high of a premium with a recently discharged BK.

Do you pull credit each year when my bond is up for renewal? Or will my premium stay at the same rate each year unless I think that my credit has significantly improved?

[Surety Wizard]

We only pull credit as an agency if the client alerts us to an increase in credit scores. The Surety Company that holds your bond may pull credit yearly depending on their underwriting guidelines. I suggest if you have an increase in your credit rating that you call your agent and alert them to re-pull your credit. We will gladly do this to help your premium go lower.