If you have been arrested and need to get out of jail fast, bail bonds are undoubtedly one of the best solutions. They allow you to gain your freedom between now and the trial date for just a small percentage of the cash bail figure, which may have been set to $20,000 or higher. However, you may be wondering “do bail bonds affect credit score?” and use this as a reason not to seek help from a bondsman in California.

So, do bail bonds affect credit score history or future applications? Here’s what you need to know.

Does the type of arrest have any impact on your financial report?

Before asking “do bail bonds affect credit score?”, many defendants (and their families) wonder whether the type of arrest will influence financial matters and credit scores. The short answer is simple: no. However, there are a few caveats to consider, including;

• Not all arrests are eligible for bail in the first place.
• The bail amount can vary greatly, which will naturally impact your finances,
• In some cases, it may be possible to get a reduced fee.

Generally speaking, though, the type of arrest is irrelevant in terms of the direct impact on your credit score. The next question, then, is whether it can impact the credit report at all.

Do bail bonds affect credit score?

No, they do not. And there is a very good reason for this. Bail bonds are not loans, which means you are not making a credit application. Instead, the bail bond is a promissory note to appear in court and pay the bond company fee (also referred to as a premium) for their services. 

With over 10.5 million arrests made each year, a high percentage of those that post bail will do so via bail bonds. The news that they will not impact credit scores or affect future car loan or mortgage applications is welcomed. 

Crucially, posting bail bonds will not affect the credit score of a co-signer who posts a bail bond on behalf of a loved one. So, while it does mean that you take on the responsibility of the bond should the defendant take flight or default on the premium repayments, worries about altering credit agencies are unfounded.

For an easy comparison, you can think of co-signing a bail bond as the equivalent of co-signing a property rental agreement. As long as the defendant keeps to the repayment schedule and satisfies the terms of bail (such as attending court hearings), you will not hear anything else. Similarly, if seeking a bail bond for yourself, keeping to the agreements prevents any threat of damage to the credit score.

While this is largely positive news, it should be noted that repaying your bonds company will not boost your credit score either. There is no direct influence - good or bad.

How could an arrest affect credit scores?

Posting bail, through cash or via a bond agency, won’t impact your credit score or even show on a credit file. Nevertheless, there are several issues that could indirectly cause a negative impact on your credit score. The three main issues are listed below;

• Paying with a credit card or another credit account like PayPal credit is likely to raise your credit utilization figure, which can lower your credit score. Similarly, moving into your overdraft may have a slightly negative impact. The good news with these issues is that you can restore your credit score once the accounts have been restored to where they were. 
• If you don’t pay the bail fines and other fees linked to your arrest, it could lead to being chased by a debt collection agency. When this happens, you will find that your credit score takes a major hit.
• If you don’t meet the premium repayment plans, the bail bonds agency may also be forced to take legal action or call debt collection teams. Again, this can have a significant impact on the credit score. Moreover, if they inform the courts that they will no longer take responsibility for the defendant’s bail, you (or your loved one) could end up in jail once more.

Of course, if repaying the bail bonds makes you fall behind on other financial commitments, like loan repayments, it can take a toll. 

Therefore, it’s important to understand the California State Penal Code 1275 and read the contract with your bail bonds company before you sign it. While getting out of jail is essential, you must think logically too - regardless of whether you’re the defendant or representing a loved one.

So, can bail bonds be used with low credit scores?

Another potential cause for concern before reaching out to a bail bonds company is whether they will accept you as a co-signer for posting bail on your loved one’s behalf. Some bail bonds providers may run soft checks to confirm that you are a reliable source for making the repayments. However, many others do not. 

Bail premiums are often set to 10% but the figure can be influenced by a range of factors, such as the full bail figure and the location. While bondsman services may run a soft credit check or take other steps to check your reliability, a low credit score won’t exclude you from gaining a bail bond. In fact, a specialist like Mr. Nice Guy Bail Bonds can offer services to people with no credit history.

It instantly makes this a better option than taking out a traditional loan. Further benefits include the ability to gain approval within a matter of minutes, which can mean that the defendant is released from jail within hours. Free quotes and 0% financing are noteworthy benefits for individuals from all credit score backgrounds while a 24/7 service means no waiting around for Monday morning after being arrested on a Saturday night.

The final thought

When posting bail via a bail bond agency, you do not have to worry about any direct impact on your credit history. However, failure to satisfy the agreement could cause your credit score to fall. Worse still, it could result in a return to jail. As long as you can keep to the repayments and your bail conditions, though, you should be just fine.