Why Pre-Settlement Loans Don't Require Good Credit

Pre-settlement loans are for those that have a pending lawsuit. This type of loan provides the plaintiff in a lawsuit with a way to cash in on the settlement before a verdict is reached. These types of loans typically are not dependent on credit. Here are a few reasons why credit is not a factor.

Advance Payment

While this is technically referred to as a loan, the plaintiff is not going to have to repay anything. This is more like getting an advanced fee than taking out a loan for the plaintiff. If a settlement is reached, the money will go directly to the lender. In fact, even if the settlement is less than the amount of the loan, the plaintiff will not have to repay anything. Therefore, the plaintiff's credit has nothing to do with this process.

Strength of the Case

These loans are highly dependent upon the strength of the case. This means that if the lender does not believe that the case has a good chance of a large settlement, they will often not offer the loan.

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