Bad credit is everywhere these days, and if you are trying to get a contractor bond, then you know how tough it really is out there. You need a bond, but you are getting turned down everywhere you go. What can you do? You can’t get the work you need without a contractor bond, and you can’t get a contractor bond with your bad credit. That’s the worst catch 22 there is, and you are not alone in having that sinking feeling in the pit of your stomach. If you are tired of feeling afraid and rejected because you have hit tough times with your credit, then I have some great news for you. Read on, I’ll explain.
Surety bonds, including contractor bonds, work like a line of credit that is extended to you. You enter into an agreement with the surety bond company that says that if you screw up on a job, they will pay for it and you pay them back. This is where surety bonds depart from insurance as a definition. You don’t pay insurance claims back. Now, this is why good credit is such a big deal to surety bond companies, and why it has historically been so tough to get them if you have bad credit.
Now, the big change is that some surety bond companies are offering contractor bonds to people even if they have bad credit.