How to Apply for a Surety Bond if you have Bad Credit
- 1). Submit to a personal credit check. This process looks into your personal financial history. A simple credit report tells the bonding company whether you qualify for a high-risk surety bond.
- 2). Authorize the bonding company to check your criminal background. A signature from you allows the company to contact the state police to obtain a copy of your criminal record. Felony convictions, along with those for drug offenses, will disqualify you from being bonded.
- 3). Provide the insurance company with your current financial net worth. Turn over copies of your current bank account statements, real property titles, stock holdings and bonds that you own. Sign a release allowing the insurance company to verify these documents with the financial institutions where you do business.
- 4). Provide the financial information required by the insurance company concerning your business's credit and net worth. Authorize the same checks to be performed on your company as were performed on you personally. This information will increase or decrease your chances of being bonded depending on the results of the checks.
- 5). Complete the rest of the application and pay the fee to get a surety bond issued to your company. Each bonding company requires a specific set of paperwork to be filed along with your informational releases. Every bonding company also requires a deposit of 10 percent or more of the bond amount for a high risk surety bond.
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