Lawsuit Loan Benefits
As you research lawsuit loans you’ll slowly start to realize there are several benefits that may entice you. Stepping away from the benefits for a second it’s important that you learn about the costs of a lawsuit loan so you can weigh the pros and cons together. This guide is designed to educate you on the benefits of a lawsuit loan and how it can benefit you during your financial troubles. Remember, a lawsuit settlement loan is only available to someone with a pending civil lawsuit.
Below you’ll find a list of the most important benefits of a lawsuit loan. We suggest that you review each item and learn more about it. Remember, some of these benefits create a large risk for the lender and can result in not so beneficial costs to the borrower. We want to make sure that you realize that along with the below pros there are also cons to lawsuit loans. We also have a guide on the “lawsuit loan process” that you might find useful.
- Credit history and score doesn’t matter – This is means your credit history and score have effect on your chances of getting approved for a lawsuit loan.
- You don’t win then you don’t pay – This is the ultimate benefit of a lawsuit settlement loan, if you don’t win your case you don’t have to pay back the money.
- No monthly payments to the lender – Unlike a traditional loan you don’t make monthly payments. Your loan is paid in full, plus interest once your case is settled via the monetary award.
- No restrictions on how the money is spent – You decide how to spend the money from your lawsuit loan; there are no restrictions on what it can be used for.
Credit history and score don’t matter
The information and data used to determine if you can get a lawsuit loan is based solely on the merit of your case. A bad credit history, foreclosure or repossession will have no effect on your chances of getting a lawsuit settlement loan. You don’t even need any employment history or minimum income levels. It’s very common for someone in a lawsuit to have financial stress; this is especially true when the case involves wrongful death or is related to preventing the plaintiff from working.
You can rest assure that the only thing that affects your lawsuit loan is how strong your case is. However, just because it’s obvious you’ll win your case it doesn’t mean you can borrow a lot of money. It will also depend on how much monetary awards you could win, what you must pay your attorney and/or healthcare costs.
You don’t win then you don’t pay
This is the best part of a lawsuit loan; if you don’t win, you don’t pay! Yes, you read that correctly, if you for some unfortunate reason you lose your case you don’t have to worry about paying back the loan. This is because a lawsuit loan is a non-recourse loan, meaning there is no recourse if they can’t follow through with the lien!
This is the single most important benefit of a lawsuit loan, but it’s important to still look for the costs of a lawsuit loan so you have an idea how much you would pay if you do win your case. Remember, with a loan that compounds monthly you’ll want a lower principle and shorter term; that is the most effective way to save money with a lawsuit settlement loan.
No monthly payments to the lender
When you borrow money from a lender such as a bank you need to make monthly payments to pay back your loan. With a lawsuit loan there are no monthly payments, you only pay back the loan if your win your case. If you do win your case your attorney will distribute the portion that is owed to the lender after they receive the settlement funds.
This makes sure your loan is paid back promptly and on time. By not having monthly payments you don’t have to worry about defaulting on your loan or getting a penalty interest rate. Some lenders will let you make payments against the loan to lower the principle amount and pay less in interest. Talk with your lawsuit settlement loan lender to see if this is something that they do.
No restrictions on how the money is spent
When you’re approved for a lawsuit loan and you receive your funds you are free to spend it however you see fit. You don’t need to worry about keeping a spending log or talking with a loan officer to draw from your loan. Once you receive the money you can use it for whatever you want. The funds are a great way to pay for monthly living expenses and take care of building healthcare debt. However, if you decide you want to take a vacation or buy a new car you’re free to do so.
Remember, this is a loan based on your future monetary award for your lawsuit. If you win your lawsuit you’ll need to pay back the balance in full, plus fees and interest. Just because you can spend your money on whatever you want doesn’t mean you should. We suggest that you use it wisely to cover the costs of living and cover any debts you might have.
