Personal injury cases can be demanding and lengthy, often straining financial resources. A pre-settlement cash advance offers relief, helping to ease the financial burden during the legal process.
A lawsuit cash settlement is not a loan but an advance taken to help people affected by their legal issues cope with other expenses while the case is ongoing. Usually when we talk about loans, the subject of credit rating comes up.
Can cash advance on a legal settlement affect your credit rating? This blog post will explain whether or not it has a negative impact and why.
Does pre-settlement funding negatively affect your credit score? This blog post will explain whether or not it has a negative impact and why.
How Does a Legal Settlement Cash Advance Impact Your Credit Rating?
The short answer is it doesn’t. Here are some reasons why:
- Your cash advance application depends on the future proceeds – Since the application will be backed by your case details, the usual criteria like income, employment and credit status do not influence the lender’s decision unlike in traditional loans.
- A legal settlement cash advance is a non-recourse loan – Pre-settlement funding is nonrecourse, which means that if the individual does not win or achieve a favorable settlement in their case, they are not required to repay the pre-settlement company.
Pre-Settlement Funding versus Traditional Loans
Several key differences stand out when comparing pre-settlement funding to traditional loans. With a conventional loan or cash advance from a credit line, such as those offered by credit card companies, fees and interest rates can quickly accumulate. These costs begin accruing immediately, and your credit score can be significantly impacted, especially if you struggle to make timely payments or maintain a favorable credit utilization ratio. High interest rates and missed payments can exacerbate your debt, leading to a cycle that negatively affects your credit score.
In contrast, pre-settlement funding operates differently. This type of funding is nonrecourse, meaning that your future settlement proceeds act as collateral rather than your credit score or existing financial obligations. If your case does not have a favorable outcome, you will not have the obligation to repay the pre-settlement company. This eliminates the concerns associated with high interest rates and credit score impact, providing a more predictable and less risky financial option while you wait for your lawsuit settlement.
Requirements in Applying for a Lawsuit Settlement Cash Advance
- Name and contact of the law firm that is representing your claim.
- Information about your accident.
- Details about your previous cash advance, if one exists.
- The name of the lending institution, if one exists.
- An explanation for the need for an advance funding
- If you have uninsured or underinsured motorist insurance policy and coverage limits
Fund Capital America’s Lawsuit Cash Advance
With extensive experience in cash advance funding, Fund Capital America offers plaintiffs and attorneys a range of flexible and affordable financing solutions. Our team understands the complexities of the legal system and is dedicated to providing exceptional customer service while tailoring solutions to fit each borrower’s unique circumstances.
Advantages of securing legal funding and refinancing through us include quick processing, no upfront fees, and a “no win, no repayment” policy. We offer competitive interest rates, term-based payback options, and flexible repayment schedules. Our commitment to transparency ensures you won’t face any pressure to settle your case prematurely.
Pre-qualify in just 5 minutes!
Complete this form to get started or give us a call at (855) 613-4466.
