In today's economy, many people find themselves in tough financial situations and consequently see their credit scores plummet. Some have fallen on hard times because of foreclosure, high credit card balances, medical bills, divorce, student loans, and other factors. Regardless of the reason, credit affects your ability to qualify for a surety bond. Read more below on how to get a surety bond with bad credit.
At Viking Bond Service, we realize that not everyone has exceptional credit. However, a surety bond may be a requirement in order to operate certain businesses. Viking Bond Service has access to several programs specifically designed for the credit challenged principal. These programs feature forms that are short and simple to complete, and the turnaround time to obtain the bond is a quick process.
The cost of obtaining a surety bond with bad credit is generally higher by nature. Surety companies, like other insurance companies with other lines of coverage, generally charge by their calculated risk, so the higher the risk, the higher the premium you pay to induce the surety to take the risk.
The good news is that after the first year's premium is paid, principals have the opportunity to begin repairing their credit. If credit can be repaired, or at least improved adequately by renewal time, the cost of renewal for the bond can be reduced from what was paid for initial term under worse credit conditions.
At Viking Bond Service, we take a fresh look at each bond file every year prior to renewal. Our in-house renewal department reviews our client's current credit standing to see if the current bond can be remarketed to standard sureties with much lower premiums. In some cases, we are able to work with our markets to get premiums lowered simply because of the relationship developed between the principal, the agent (Viking Bond Service), and the surety. We may, for example, show the surety that Client A has been with us for X many years without any claims history, and we feel that the client does not present a bad risk and is thereby deserving of a lower rate.
At Viking Bond Service, we are dedicated to providing efficient friendly service to streamline processes and ensure your satisfaction with a team of surety bond experts with over a century of combined industry experience. We provide bonding using A-rated, Treasury-listed paper. With our proprietary tracking and processing system and a knowledgeable tech team, we can provide a quick turnaround and great service for our customers, ensuring that we can help you apply for a surety bond with bad credit.
If you or any of your insured clients are in need of a surety bond and credit is an issue, feel free to contact us for more information about high risk surety bonds by calling (888) 278-7389 or filling out our contact form. Not all bond types and amounts qualify, but most standard license and permit bonds $50,000 and under can be written through this program. If you would like a free quote for a surety bond, please call us or fill out our online application today.
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