If you have been in an accident through no fault of your own and sustained injuries, it is likely that you are having difficulties recognizing your life now when you compare it to what it was before the accident and the injuries. You may have been unable to go back to work as you navigate the medical system, leaving you with financial constraints when you need money the most. You may also have to spend your days going to different appointments, treatments, therapies, and more, and may even require help doing things you used to take for granted before.
As you deal with this difficult situation, you may have decided to file a claim against whoever is responsible for your losses and injuries. Although your personal injury attorney may reassure you that you have a solid case and that you should eventually receive the compensation you deserve and to which you are entitled, you may now feel trapped in a complicated financial situation. If so, Pinnacle Legal Funding recommends you consider a personal injury loan. This type of loan can be a lifeline when you see no other way to get your hands on some desperately needed funds. Let’s see what those loans are and what they can offer you.
What is a Personal Injury Loan?
Personal injury loans are financial tools that grant injured plaintiffs access to cash based on a future settlement. These types of lawsuit loans can help borrowers cover expenses such as medical bills, living expenses, and other costs. They are also known as pre-settlement loans or lawsuit loans. They can help plaintiffs with financial needs while waiting for their cases to be resolved. They are based on the strength of the case, not the credit history of the borrower. They are non-recourse, meaning they do not have to be repaid if the case is lost.
How Much Can I Borrow with a Personal Injury Loan?
The amount you can borrow with a personal injury loan depends on several factors, such as the damages, liability, insurance coverage available, and the strength of your case. It may be worth it to get quotes from different lenders to understand their criteria and limits when it comes to personal injury loans. However, in general, you can expect to get anywhere between 10 and 20% of the value of your case in the form of a cash advance. This means that if your case is worth $100,000, you may be able to borrow $10,000 to $20,000 as a personal injury loan.
How Much Do Personal Injury Loans Cost?
The cost of a personal injury loan will vary depending on the lender you work with, the loan amount you are receiving, and the terms of the loan agreement. Since personal injury loans are not regulated in most states, the interest rates may be quite high. You should always take the time to read the fine print and understand the fees and charges before signing any loan agreement or any other document. You should also consult with your accident attorney before applying for a personal injury loan, as they may be able to negotiate better terms or advise you on other options that may be more favorable to you.
Does My Credit Impact My Eligibility to Receive a Personal Injury Loan?
You can certainly get a personal injury loan if you have bad credit since, unlike traditional loans, personal injury loans are not based on your credit history or score. These loans are based on the strength of your case and the likelihood of getting a favorable settlement or verdict. Therefore, you do not need to have a good credit score to qualify for a personal injury loan.
However, having bad credit may affect other aspects of your financial situation, such as your ability to obtain financing, your interest rates, and your credit rating. Yet, if someone damages your credit rating because of their negligence or wrongdoing, you may be able to sue them for financial injury.
What Happens If I Lose My Case? Do I Have to Repay the Loan?
Personal injury loans are non-recourse, which means the lender cannot pursue you or your assets for repayment. This means that if you lose your case, you do not have to repay your personal injury loan. The lender only gets paid back from your settlement or award if you win your case. This is why personal injury loans are risk-free for borrowers.