How much would a surety bond cost??

[pedroquinonez]

I have bad credit, credit score is around 530, and need to get a surety bond of $50,000. how much would it cost me?

[Surety Guy]

Bond rates vary by state and we can not post rates on this forum, as rates change from time to time and we wouldn't want anyone to obtain false information from reading this...

You can obtain a quote online directly from our web site at anytime at the following link: Bad Credit Surety Bond Program

[mrbond]

It's shouldn't be a question of price, but whether or not you are bondable. Unfortunately, many state statutes have included coverage for financial transactions under motor vehicle dealer bonds. That means that if you buy cars at an auction and don't pay the floor plan, the surety may have to. Think of it as a loan guarantee. Sure, there are some surety companies that think the can price their way out of underwriting and may write your bond for a higher premium, but I don't know many of those companies that have been in the bond business longer than 10 years. If you find one that does, fine. But be prepared to be looking for another surety in a few years, so start cleaning up your credit now.

[Surety Guy]

MrBond, I agree it is always a good idea to actively improve your credit.

However, there are high risk programs offered by some of the largest A rated/T-listed sureties in the US. The program we offer is written by a surety established in 1959.

I am not saying I would offer the program exactly as is if I were charge of the surety, but we have been writing this program for years now and there have been few claims out of the many bonds processed. Keep in mind that many clients in these programs simply don't qualify for the extremely conservative bond market, in my opinion not all of them belong in a high risk program.

In the eyes of our A-rated/T-listed surety, almost everyone is bondable and that is ok with me. We always recommend our clients to improve their credit situation or to obtain home ownership if their lack of it puts them in the program. I believe these programs are too popular and are making too much profit for them to no longer be around, but it is always a good idea to improve your situation to lower your premium.

[mrbond]

Surety Guy, I think we have both been in the business long enough to know that there's a difference between being in the insurance business since 1959 and being in the miscellaneous surety business. Many insurance companies have been in and out of surety over the years. I just can't think of any "surety" that has had a "high risk" program for any significant length of time. But you are right, there always seems to be some surety willing to write a bond...for a price.

[Surety Guy]

The surety has been in business since 1959, but obviously the program is rather new (about 4 years old), as there was no need for this type of program in the soft market of years past. If the market wasn't so liberal a couple years back you would have seen the programs come about a lot sooner.

Don't be mistaken, the program does have guidelines and will not approve all bond forms or applicants. It is rare, but there are times where we can not place a commercial bond. For the most part, commercial bonds can be written for anyone (at a price), but there are rare cases that even the high risk programs decline an application.

I for one think the high risk programs are great. Many small businesses can not obtain a large enough letter of credit to satisfy the requirements. It is the only solution for many our clients.

Originally Posted by pedroquinonez

I have bad credit, credit score is around 530, and need to get a surety bond of $50,000. how much would it cost me?

how much is a $50,000 bond

[Admin]

The forum FAQ does not allow for rate discussion. You can find out more about why you can not obtain a quote without applying here: http://www.jwsuretybonds.com/faq_quotes.htm

If you wish to obtain a quote you can apply online at: Bad Credit Surety Bond Program