FAQs | Worldwide Insurance Specialist, Inc

Have a bond-related question? We have the answer. Check out these FAQs and give us a call today for more information!

How can I get a better rate for my bond? 

One of the main drivers for your surety bond is your credit score. Improving your credit score is an important step towards achieving a low bond rate. Improve your credit score by paying your bills on time. Make sure to pay all your bills, including credit card payments, loan installments, and utility bills, by the due date. Reduce your credit utilization and aim to keep it below 30%. Maintain a mix of credit accounts: Having a diverse mix of credit accounts, such as credit cards, loans, and a mortgage, can positively impact your credit score. However, be cautious about opening new accounts unnecessarily, as it can also negatively affect your score. Monitor your credit report to ensure it is accurate and free from errors. You can obtain a free copy of your credit report once a year from each of the major credit bureaus (Equifax, Experian, and TransUnion). If you find any inaccuracies, report them and have them corrected. Avoid excessive credit applications. Each time you apply for new credit, it triggers a hard inquiry on your credit report, which can lower your score. Limit the number of credit applications you make and only apply for credit when necessary. A longer credit history tends to be more favorable for your credit score. If you have old credit cards that are in good standing, keep them open to demonstrate a longer credit history. Be cautious with closing accounts. While closing unused credit accounts can be beneficial, closing your oldest accounts can shorten your credit history. If you decide to close an account, prioritize closing newer ones rather than your oldest accounts. Use your credit responsibly: Show lenders that you can handle credit responsibly by using it in a disciplined manner. Avoid maxing out your credit cards and try to pay off the balance in full each month. Consider credit-building tools and remember to be patient and consistent. Building a good credit score takes time and consistent responsible financial habits. Stick to good credit practices over the long term, and your credit score will gradually improve. Remember, improving your credit score is a gradual process, and it may take some time to see significant changes. Stay committed to good financial habits, and you'll be on your way to a better credit score. Call Worldwide Insurance Specialist Inc for a contractor license bond.

How long is a surety bond good for? 

The terms on surety bonds will vary by type and state. Most motor vehicle dealer bonds, for example, have terms of one year but can extend up to three years in Oregon, according to our pros. For many surety bonds, you will have the option to renew the term. Call us today to learn more about how a surety bond can benefit you.

Can you cancel a surety bond? 

The cancellation process can vary by the bond type, state, and surety company. A written agreement signed by all parties may be necessary for canceling the bond. In some cases, a full or partial refund is possible but not guaranteed. Call today to learn about how a surety bond or a contractor license bond can help you.

Do I need a surety bond? 

Surety bonds are commonplace for many businesses — those that work in the construction industry or with municipalities, for example. License and permit bonds may also be necessary for certain professionals, such as electricians and auto dealers. However, surety bonds are not necessary for some types of businesses. Be sure to research your federal and state requirements to determine the necessary surety bonds for your business, if any.

What is a surety bond good for? 

Surety bonds ensure certain parties fulfill their contract terms and operate within the law. Performance and contract bonds, for example, guarantee that a project is completed and meets certain expectations or proper compensation is provided. A guardianship or conservator bond helps to guarantee that the guardian or conservator acts in the best interest of the minor or conservatee.

What is an example of a surety bond? 

A business owner is expanding and hiring a construction contractor to build a new office. Before beginning work, the business owner requires the contractor to obtain a surety bond for $100,000. The contractor obtains a surety bond from the surety. Now, let’s say the construction contractor messed up and can no longer complete the project. The business owner files a claim against the bond and the surety issues a financial recompense of $100,000 to cover the project losses. Call us today to discuss the technicalities of a surety or dealer bond.