Will my credit score affect my eligibility for pre-settlement funding?
The concept of pre-settlement funding has become increasingly popular in recent years. This type of financing is typically sought out by people who have suffered personal injuries or damages due to the negligence of someone else and find themselves in a position where they need financial relief during the legal process. While pre-settlement funding may offer a much-needed solution, what many people don’t realize is that there are some eligibility requirements that must be met in order to receive this type of funding. Surprisingly, one of these prerequisites is a good credit score.
A credit score may seem like a strange requirement for pre-settlement funding, but there are several reasons why it is important and necessary. In order to provide pre-settlement funding, companies must assess the risk involved with their decision. After all, they will not be able to receive the money back until the case is settled or the person wins the lawsuit. By looking at the credit score of the borrower, lenders can get an idea of how reliable the person is about paying their bills on time. This, in turn, can help to indicate whether or not the person is a high or low risk investment.
Having good credit is also important because it can help to determine the amount of money a person is eligible for. Since pre-settlement funding is an unsecured loan, the amount of money that a person can receive will vary depending on their credit score. Generally speaking, people with higher credit scores are considered to be more trustworthy and thus will be eligible for larger amounts of funding than individuals with lower credit scores.
It is important to note, however, that not everyone will be able to qualify for pre-settlement funding based solely on their credit score. Other factors, such as the strength of the case and the amount of money that is being sought in the lawsuit, will also play a role. Generally speaking, if the case is strong and offers a good chance of success, the lender is more likely to approve the loan even if the borrower’s credit is less than ideal.
The bottom line is that while having a good credit score is beneficial, it is not necessarily a deal breaker when it comes to pre-settlement funding. As long as the other criteria is met and the case is strong, then it is still possible to receive the financing. If a person’s credit is not in the best of shape, then they should focus on building it up and then applying for pre-settlement funding when the time is right.
