If your credit score is less than ideal, you may be concerned about whether you can qualify for a surety bond. Having less-than-perfect credit may affect your pricing or require additional underwriting review, but it does not automatically disqualify you.
At Bryant Surety Bonds, we believe everyone deserves a fair chance to start or grow a business. That’s why we work with specialty surety markets to help higher-risk applicants qualify for the coverage they need.
What Is a Bad Credit Surety Bond?
A bad credit surety bond is a standard surety bond issued under non-preferred underwriting conditions. Instead of declining an application outright, surety companies often offer alternative programs that allow higher-risk applicants to qualify.
These programs may involve higher premium rates, additional underwriting review, or requests for financial documentation. However, the bond itself functions the same way and still guarantees that you will meet the obligations required by a government agency or regulatory authority.
What Credit Score Is Considered “Bad”?
Sureties consider a credit score of 650 FICO or lower "low" or "bad" credit. However, credit scores alone do not tell the full story. Sometimes, applicants with a score over 650 may also be considered "bad credit applicants" if they have financial issues such as:
- Tax liens or judgments
- Bankruptcies
- Outstanding debt or collections
Can You Get a Surety Bond With Bad Credit?
Yes, in most cases, you can still get bonded, even with a low credit score or limited credit history. Many surety providers offer programs specifically designed to help higher-risk applicants qualify.
Approval depends on several factors beyond credit alone, including the bond type, required amount, and your overall financial profile. While pricing may be higher, most applicants are still able to move forward.
In the video below, you can find more information about how you can proceed if you have a lower credit score but still want to get bonded.
Why Are Rates Higher for Applicants With Low Credit?
Bonding companies do not operate like insurance companies. Where an insurance company assumes a certain amount of claims on its policies, the surety bond industry assumes a 0% loss ratio.
With such strict guidelines, only those with good credit (at least a score of 650, oftentimes higher is required) and a clean history (no bankruptcies, tax liens) are approved for low rates.
For those with low credit or new businesses with no credit history, bonds are issued at higher rates than for standard applicants.
Types of Bonds Available With Bad Credit
Not all surety bonds are evaluated the same way when credit is a factor. Understanding which category your bond falls into helps set expectations around cost, processing time, and what documentation may be required.
No Credit Check Bonds
Some bonds are issued instantly and do not require a credit check at all, regardless of your financial history. If your bond falls into this category, you can typically receive it the same day. Bond types in this category include fidelity bonds, notary bonds, and lost title bonds.
Low-Risk Bonds
These bonds are generally available even to applicants with bad credit, because they involve lower financial exposure and are tied to specific license requirements. They require underwriting review, including a soft credit check, but approval is common even for higher-risk applicants — though at higher premium rates. Bond types in this category include license and permit bonds, such as auto dealer bonds, contractor license bonds, and mortgage broker bonds.
High-Risk Bonds (Not Available Through This Program)
Some bond types carry significant financial risk and are not available through bad credit programs. These include contract bonds (performance, payment, and bid bonds). Freight broker bonds are also typically unavailable to applicants with bad credit — if your credit score is below 630, you will generally be required to provide at least $25,000 in collateral, and approval is not guaranteed.
How Much Does a Bad Credit Surety Bond Cost?
The cost of a surety bond is based on a percentage of the total bond amount, known as the premium. Because applicants with lower credit are considered higher risk, they typically pay higher rates than standard applicants.
Rates for applicants who have a low credit score begin at 5% of the total bond amount and can be as high as 15%. The exact rate at which you can get bonded will be determined by the surety once you complete and submit a bond application form.
To give you a clearer idea of what to expect, here are some general estimates based on typical bad credit rates:
| Bond Amount | Estimated Premium (5%-15%) |
|---|---|
| $10,000 | $500 – $1,500 |
| $25,000 | $1,250 – $3,750 |
| $50,000 | $2,500 – $7,500 |
Your premium is not determined by credit alone. Surety companies evaluate multiple factors when assessing risk, and each element plays a role in your final rate.
Some of the most important considerations include:
- Credit history and financial background
- Bond amount required
- Industry and bond type risk level
- Business experience
- Previous claims or bonding history
How can I improve my rate?
You can get increasingly better rates on your bond by improving your credit score and your personal and business financials. You can also improve your bond rate by resolving any tax liens, civil judgments, unpaid debt, etc.
You can get an estimate of the cost of your bond by using our bond calculator below! For a precise quote, complete our bond application form.
Surety Bond Cost Calculator
Tell us where to send you your FREE estimate
SEND ME MY ESTIMATE!We'll never share your information with third parties
Thank you for your request!
The ballpark estimate on your premium is: $100 - $167
We've sent a copy of your estimate on your email as well.
Want an exact quote? Simply fill out our online application It's fast and 100% free!
Get a free exact quote Get another estimateCan I Be Denied a Surety Bond if I Have Bad Credit?
While most applicants are approved, some applications may be declined if the risk is too high. Common reasons include bankruptcies, unresolved financial issues, or lack of experience for higher-risk bonds. In some cases, approval may still be possible after providing additional documentation or improving your financial profile.
Do You Need Collateral to Get a Surety Bond?
Collateral is not required for most standard bonds, but it may be requested in higher-risk situations, particularly for larger bond amounts or applications with significant financial concerns. Collateral may take the form of cash deposits, letters of credit, or other financial guarantees. These requirements are evaluated on a case-by-case basis.
How to Apply for a Surety Bond with Bad Credit?
To get started, complete our bond applicant form below. We’ll contact you shortly to provide you with a free and 100% exact quote on your bond. We’ll also provide you with further details on how to complete the application process.
-
1Get a FREE Bond QuoteStart Your Application
-
2Tell us about your businesspowered by
-
3Get your FREE quote today!
Even applicants with low credit scores receive their bonds usually within the same day with Bryant Surety Bonds.
FAQs
Can I get a bond with no credit history?
Yes. Many surety companies treat a lack of credit history similarly to poor credit and offer programs designed to help new businesses qualify. Some bonds, such as the fidelity bonds, do not even require any credit checks.
How long does the approval and issuance process usually take for someone with low credit?
In most cases, bad credit surety bonds can be approved just as quickly as standard bonds. Most applicants receive approval the same day. More complex applications may take a bit longer if additional review is required.
How are claims handled for bad credit surety bonds?
Claims are handled the same as any surety bond. If a claim is valid, the surety may pay the harmed party, but you are responsible for reimbursing the surety for the claim amount and any related costs.
Can a co-signer or indemnitor with good credit improve my chances or lower my rate?
Yes. A strong indemnitor with good credit and solid financials can reduce perceived risk, which may lower your premium or collateral requirements. The indemnitor will typically need to sign a personal indemnity agreement and provide supporting financial documentation.
Can you get a bid bond with bad credit?
Unfortunately, no. Bid bonds are a type of contract bond and typically require strong credit, financials, and proven experience. These bonds are not available through bad credit programs, so applicants with low credit scores should not expect to qualify.
Can you get a bad credit payment bond?
No. Payment bonds, just like bid bonds, involve significant financial responsibility, as they ensure all subcontractors and suppliers are compensated on a project. Because of this, surety companies require strong financials and creditworthiness to approve these bonds. Bad credit programs do not cover payment bonds, so applicants with low credit scores are not eligible.
