Anytime a person is arrested, they will be required to attend a bail hearing. This is where the judge will decide whether or not they can get out on bail, an amount of money that is paid to guarantee that the defendant shows up at their court hearing later. If the defendant can’t afford to pay the bail amount on their own, they often turn to a bail bond agency that can loan them the money they need to get out of jail. This might sound an awful lot like a loan, but there are distinct differences between a bail bond and a loan. Ajua Bail Bonds is here to discuss what these differences are.
How Do Bail Bonds Differ from Other Loans?
There are multiple differences between a bail bond and a personal loan. Here are the differences broken down:
– Contractual: While it might seem like a bail bond is a personal loan; it isn’t. A bail bond is a contractual obligation between the defendant, the agent, and the court. The agent simply acts as a surety and pays the court rather than giving the money to the defendant to pay. They are guaranteeing that the defendant is going to show up later.
– No Credit Score: When people get a traditional loan, usually their credit score will come into play. That isn’t the case with bail bonds. The credit score of an individual isn’t something that is looked at. Sometimes, an agent will require that the defendant have a co-signer to work with them to secure bail, but no credit score is considered.
– No Fixed Interest Rate: Another thing that sets a bail bond apart from a loan is that there isn’t a fixed interest rate or a repayment program. The agent usually charges a fee at the beginning which is generally 10% of the bail amount. There might be other fees down the road depending on how long the trial lasts and things of that nature.
– Doesn’t Impact Credit: Another difference is again associated with a credit score. When you get a personal loan, it usually will impact your credit score. The bail bond won’t do that. It isn’t going to lower your credit score when you work with an agent to post bail. It can indirectly affect your credit score if you end up not paying it and it gets sent to collections. However, if you pay it back and keep up your end of the deal, your credit score isn’t impacted at all.
Bail Bond Services in Clovis, Reedley, Sanger, Selma, Atwater, Los Banos, Merced, Visalia, Porterville, Tulare, Hanford, Corcoran, Lemoore & Greater Fresno, CA
If you have found yourself in jail and would like to get out on bail but don’t have the funds to do that, you can turn to Ajua Bail Bonds to help you get out as soon as possible. We know how beneficial it is for defendants to be home where they have the support they need. Call us today!