Surety Solutions
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Crystal Ignatowski By Crystal Ignatowski • May 8, 2017

Can I Get A Surety Bond If I Have No Credit?

can I get a surety bond if I have no credit?

 

Having no credit means you do not have any credit history with one of the three nationwide credit reporting companies. Often, this means you haven’t taken any steps to establish your credit, such as opening a credit card account or taking out a bank loan.

Those with no credit are often called "credit invisible".

While credit invisible individuals can take steps to establish credit, you might be on a tight timeline. Here's what it means for surety bond if you have no credit.

Getting a Surety Bond with No Credit

 

When people ask the question “How much does a surety bond cost?” the most common answer is “It depends.”

Depends on what? Well, many factors, but one of the largest factors is the applicant’s credit score.

The factors include: Character, Capacity, Capital, and Credit.

  • Character: your reputation as seen in references
  • Capacity: your ability to perform and fulfill obligations as seen in past work history
  • Capital: your financial position as seen in financial statements
  • Credit: your personal strength as seen in your credit score

If you have no credit, you only will be evaluated on the other 3 C’s.

If your other 3 C’s are met, then your ability to get bonded will be strong.

 

Getting a Lost Title Bond With No Credit

A Lost Title Bond is needed when you have lost or damaged the title to your vehicle and you need documentation of ownership.

Lost Title Bonds are not based on credit, so if you need a Lost Title Bond and you don’t have any credit, you are in luck.

  • Conclusion: You will be able to get a Bonded Title without a problem.

 

Getting a Contractor Bond With No Credit

A Contractor Bond is needed for contractors who are just starting out in the business. Depending on how large of a Contractor Bond you need, an underwriter may need to run a credit check to evaluate your risk.

If you need a Contractor Bond and you have no credit, make sure you meet the other 3 C’s of surety: Character, Capacity, and Capital.

  • Conclusion: If you can prove you have good character, a substantial amount of capital, and the capacity to complete the designated job, then you will probably be able to get a Contractor Bond without any credit.

 

Getting a Motor Vehicle Dealer Bond With No Credit

A Motor Vehicle Dealer Bond is required for almost all motor vehicle dealers who are opening up a dealership for the first time. Motor Vehicle Dealer Bonds require a credit check.

  • Conclusion: If you need a Motor Vehicle Dealer Bond and you have no credit, you will probably have a tough time getting bonded. This is because credit is such a huge determining factor in evaluating your risk as a new motor vehicle dealer.

 

Getting a Mortgage Broker Bond With No Credit

A Mortgage Broker Bond is also required for almost all mortgage brokers who are starting out in the mortgage industry.

Because mortgage brokers handle finances, they will more than likely always need to have credit history to get bonded. Often times, mortgage brokers will even have to provide the underwriter with a full financial statement to determine the mortgage broker’s ability to get bonded.

  • Conclusion: If you need a Mortgage Broker Bond, expect to have your credit history evaluated.

 

Getting a Court Bond With No Credit

There are many types of Court Bonds, and an applicant’s ability to get approved for one will depend on the circumstances surrounding the case/estate and whether they are working with an attorney. Working with an attorney is highly recommended in court cases and when a surety bond is needed.

  • Conclusion: If you have a reliable attorney who can prove his/her character, capacity, and capital, an underwriter will look at this strongly. If an underwriter needs more assurance, collateral might be required. 

 

The best way to see if you can get a surety bond with no credit is to apply.

Browse available bonds. See how much you'd pay.

 

Get A Free Surety Bond Quote

 

Conclusion

Some theories suggest that having no credit is better than having bad credit. When it comes to getting a surety bond, this is true.

If an underwriter can evaluate your risk confidently by the other 3 C’s of surety, then you’ll most likely be able to get bonded.

 

The only way to know if you can be bonded is to apply for a surety bond. Surety Solutions works with individuals who have excellent, injured, and no credit history.

Give us a call today at 866.722.9239 and we can discuss how you can get bonded, no matter what your situation.

 

Contact Surety Solutions

 

 

Related links:

Consumer Financial Protection Bureau - Credit Invisible Report

Challenges of the Credit Invisible

5 Ways Credit Invisibles Can Build a Credit Profile

How Much Does A Surety Bond Cost?