A cash advance on a lawsuit settlement provides the financial resources you need while your case is pending, but will it lower your credit score? Your credit is not a factor when applying for a lawsuit cash advance (so your credit score is not affected). Instead, the non-recourse loan is backed by the proceeds you expect to receive in the future.
Here are some of the facts regarding a cash advance on a lawsuit settlement and your credit score:
- Your credit score does not matter when applying for a pre-settlement cash advance.
- Approval decisions are based solely on the merit of your legal claim.
- Pre-settlement funding does not show up on your credit report.
And, most importantly:
- A lawsuit settlement cash advance will not lower your credit score.
A Lawsuit Cash Advance Is Not Backed Your Current Finances
Since the advance is backed by the proceeds of your future settlement, your credit, income, and employment status have no bearing on a lender’s decision to approve your application. It also avoids the pressure to settle a lawsuit too early, which can have a better financial outcome. The more your attorney can fight for you, the better your chances of a higher settlement.
Non-recourse loans don’t require you to pay anything upfront. There are also no out-of-pocket expenses, as fees and interest will be taken from your future settlement along with the amount you borrowed. The remainder, after your lawyer and medical liens are paid, is mailed to you or deposited in your bank account. On the other hand, you pay nothing back if you lose the case.
A Lawsuit Cash Advance Is Not a Typical Loan
Receiving a cash advance on a lawsuit settlement is different than borrowing cash from a credit line or traditional lender. Credit card companies charge fees for cash advances, which start to accrue interest immediately. The impact on your credit score can be significant. However, the effect is minimal if you make timely repayments and your credit utilization ratio is favorable. Your score can improve if you pay all your debts on time.
However, high- interest rates can make it hard to make timely payments. Your debt will then grow. High rates and missed payments can increase your credit utilization, especially if you’ve taken out a large cash advance. Using it to cover normal expenses (rather than one-time emergencies) can leave you in a debt cycle that lowers your credit score.
None of these are a concern with a lawsuit settlement cash advance. Your future settlement proceeds are the collateral, not your credit.
Settlement Cash Advances Don’t Require a Credit Check
Most loans require a credit check, which can by itself lower your credit score, but a lawsuit cash advance is not a traditional loan. Legal funding companies don’t need to see your credit history, as it’s the facts of your case that impact their risk the most. Lawsuit funding also avoids having to use credit cards or apply for new lines of credit to cover your expenses.
Adding to your credit card debt means having to pay more each month. This is not ideal when you’re strapped for cash. But rather than lower your credit score, a lawsuit settlement cash advance can help raise it—that’s because you’re using less credit and you can use the funds to pay down your credit card debt.
Use the money wisely and it can actually help improve your credit score.
What Do I Need to Get a Cash Advance on a Lawsuit Settlement?
The lender doesn’t need to see your credit score, nor will applying for a cash advance lower it. However, they require details pertinent to your case. The initial application only requires basic information about you, your claim, and your attorney. Next, the lender speaks to your lawyer. Rather than lowering your credit score, the decision to approve your request and how much to offer depends on:
- You have hired an attorney or law firm
- The severity of your injuries
- The expected length of your recovery
- The expected settlement amount
- The odds of your case winning
You don’t need a credit report to apply for a cash advance. However, the more documentation you can provide the lending company, the faster they can approve your application and make an offer. This includes receipts, medical bills, police reports, and photographs of the accident scene. Once again, none of this carries the risk of lowering your credit score.
Apply for a Lawsuit Settlement Cash Advance Today
Fund Capital America offers a quick and easy way to apply for a cash advance on a lawsuit settlement. You can receive non-recourse lawsuit funding within 24 hours once we have the required information. There is no credit check and no upfront fees are charged. The process is also paperless. It won’t lower your credit score and can provide the cash you need, even if a settlement is months or years away.
To get started, apply now or call (855) 870-2274.