Personal loans in the U.S. have an interest rate of between 6% and 36%, often depending on the lender, the borrower, and loan terms.
Other than interest, a poor score and lack of collateral are factors that deter people from getting a loan. If you have a pending lawsuit, it would be easier for you to get lawsuit settlement loans as the requirements are not as stringent.
Do you know what a lawsuit loan is? If yes, should you get one? Read our comprehensive guide here to know more about lawsuit settlement loans and why you might need one.
What Are Lawsuit Settlement Loans?
A lawsuit loan, commonly known as pre-settlement funding or a settlement loan, refers to a financing option where individuals apply for a loan before filing for a lawsuit. People who have suffered accidents or occupational injuries and wish to sue the other party can opt for a lawsuit loan. The compensation process often takes a while to get resolved, and a loan can come in handy.
Legal proceedings can drain you financially. Worse still, you might be unable to work, which will make it hard for you to afford some of the most basic things. A lawsuit loan at this point can be an ideal option.
Whether in a road crash or workplace, if you have suffered injuries, research more on pre-settlement funding to know how you can benefit. For victims who are waiting for compensation, lawsuit settlement loans can be an easy and quick solution to the financial woes they are facing. A borrower pays back the loan after the disbursement.
How Does a Lawsuit Loan Work?
One has to start by filing a lawsuit to be eligible for pending lawsuit loans. Next, look for a reliable pre-settlement funding company to fill out your application. The lending company will review your case after talking to your attorney.
Lawsuit loans come with zero risks, meaning that you won’t repay the loan if you lose the case. Therefore, the lender takes time to examine the claim to ensure that there are higher chances of recovery. A lender can only give you an amount they believe you’ll get after deducting the attorney fees and probably the medical liens.
Once a lender approves the loan, you will have the money in your account in less than 48 hours. You’ll repay the loan after recovering the lawsuit proceeds, which can either be through a judgment or settlement. You also have to pay the lender the accumulated interest.
Benefits of Lawsuit Loans
If you are wondering if pre-settlement funding is worth it, you are not alone. Many people don’t understand how the lawsuit settlement loans work, making potential borrowers rethink the funding. Here are the top benefits of lawsuit loans that can guide your decision.
Lawsuit loan risks ought to be free. As such, you don’t have to worry about where you’ll get money from if you don’t get the compensation. This type of loan has significant differences from the traditional loans where lenders require a borrower to repay the amount regardless of the situation after taking the loan.
In cases where the settlement is lower than what was anticipated, you only pay the loan based on the amount you receive, even if the borrowed amount was higher. With this kind of loan, the risk is more on the lender than the borrower.
Disbursement of Funds Is More Immediate
With a lawsuit loan, you’ll get money in your account almost immediately. After the approval, the lending company will give you the money within hours. The process is quite straightforward, and you don’t need to think about endless paperwork to fill before getting the money.
Personal injury victims tend to face humongous legal and medical bills after an accident. Being out of work can also be a disadvantage to victims as they face other financial struggles. To save yourself from this predicament, consider a lawsuit loan as it will help you with finances as you look forward to the compensation.
Additional Negotiation Time
Insurance companies often seek to pay the lowest amount to victims. They do so by pushing a claim through litigation or dragging the case. These tactics might pressure a victim to accept a settlement without giving it much thought.
The plaintiff often accepts these lowball offers as they are usually desperate for cash as the financial obligations keep knocking. This is a weakened position, and it’s not surprising for someone to accept the compensation out of desperation.
Lawsuit settlement loans tend to strengthen the bargaining position of plaintiffs. With the pre-settlement funding loan, you can manage your bills comfortably. As such, you can reject unfavorable offers as you take time to negotiate for better settlements.
A Good Credit Score Isn’t Necessary
Lenders often check one’s credit score to determine their ability to get a loan. When filling out a lawsuit loan, good credit is not a requirement to receive funding. You will only need a strong case that almost guarantees the lender that you will recover the money.
Once the lender reviews the case and finds it favorable, you won’t face hindrances in getting the cash. Lawsuit lenders hardly check your credit score. Your chances of winning will be the primary determinant of whether you’ll get the loan.
It is crucial to work with a qualified lawyer to help with presenting your case. If you have the necessary proof, getting the lawsuit loan will be easier than most traditional loans.
Understanding Lawsuit Settlement Loans Is Crucial For Plaintiffs
Lawsuit settlement loans are quite different from most other loans. If you’re in the process of filing for a claim, a lawsuit loan can be timely. The last thing you’d want is to struggle with bills while still dealing with the aftermath of an accident.
A pre-settlement loan makes life bearable for victims. It is crucial to understand more about these loans before signing up for one. While at it, ensure that you’re working with a reliable pre-settlement funding company to avoid disappointments. Are you looking for a credible lending company for a lawsuit loan? The U.S. Claims Litigation Funding has been offering lawsuit loan funding for years. Contact us today and rest easy as you wait for your compensation.