Bad Credit Program?

[Bond Artist]

How come you do not offer a high-risk program for contract bonds? How come you can issue commerical bonds through a high-risk program? Is there any way that a contractor with bad credit can obtain a contract bond?

[PT]

Originally Posted by Bond Artist

How come you do not offer a high-risk program for contract bonds? How come you can issue commerical bonds through a high-risk program? Is there any way that a contractor with bad credit can obtain a contract bond?

There are companies out there who will write contract bonds for people with less than perfect credit. However, they generally require significant collateral.

Contract bonds are in a different category than commercial bonds. A contract bond is for the entire value of the contract. Because you could be personally responsible for the contract, Surety wants to make sure that if there is a problem and they have to complete a project on your behalf, that you have some financial way to reimburse them for any costs. If you have bad credit - there is probably nothing there to reimburse with.