Bad credit score affect surety bond cost including requiring collateral and increasing the bond cost. As more people deal with unpaid credit card bills, past due mortgage payments, and even late car payments, the concern over bad credit is rising. Like job applicants, surety bond applicants may find their credit score doesn’t work in their favor. Financial administrators can clear up low credit scores, but Jurisco experts can help minimize the score’s impact on surety bonds right now.
Clients with good history could see bond cost as low as between one and four percent of the total bond amount. However, those with bad credit could see that range widen between five and 20 percent. State regulations (contact a Jurisco representative to discuss your state mandates) also play a role in how credit is used to determine cost. A good credit score generally equals a lower bond fee, but Jurisco is able to keep rates low for most applicants with bad credit as well.
Several factors influence the bond cost with bad credit being just one unit to measure risk. When a bonding company reviews the application for a replevin bond, executor bond or even an appeal bond, they consider the risk the bond presents. An administrator bond, for instance, covers the financial health of an estate, and the actions of an administrator to handle that estate without error. Often times, estates can be worth millions of dollars, which poses more of a risk than a replevin bond involving a $5,000 car.
How a surety bond company manages the risk involved determines the cost of the bond. Since there are different scenarios, which could raise the cost of a bond, there is more than one way to level it out. Jurisco can complete the bond quickly and keep the cost to a minimum. For more information, call us at 800-274-2663 to find out how bad credit will affect surety bond cost.