A car accident loan can help you cover your expenses as you wait for your settlement. Car accidents can cause lifelong devastation in their wake, and victims are often forced to abandon their fight for justice due to high medical bills and lost wages.
With a cash advance on your expected settlement, you can be in a better position to fight for your maximum award. Find out if a car accident loan, also known as a lawsuit loan or legal funding, is the right financing option in your fight for justice.
What Is a Car Accident Lawsuit Loan?
After a car accident, you could be waiting for a substantial settlement. However, you could see this award slip away just because you can’t afford an extended legal fight for it. A car accident lawsuit loan allows you to borrow against this expected award. With this money, you can pay for expenses you face now that could otherwise cause you to accept a lower settlement.
A car accident loan treats your expected settlement as collateral, leaving your personal assets untouched. You can borrow against this hypothetical amount with a risk-free loan that you don’t have to repay unless you win your case. Regardless of the outcome of your case, you won’t ever owe more on your lawsuit loans than your settlement is actually worth.
How Do You Qualify for a Car Accident Loan?
The process to qualify for a car accident loan is quite simple. So long as you meet the following criteria, it’s likely that you’ll be able to obtain pre-settlement funding for your accident:
- You’ve been involved in an auto accident and have suffered damages.
- You’ve hired a contingency-based lawyer to represent you.
The specific process you’ll follow to receive a lawsuit loan will vary depending on which legal funding company you work with. The amount of legal funding for which you qualify will also depend on your damages.
How Risky Are Car Accident Loans?
Unlike other forms of debt, lawsuit loans present no risks at all to the borrower. You’ll never have to go through a credit check or employment verification in order to obtain a lawsuit loan. That means settlement loans won’t ever impact your credit score or ability to access other forms of financing.
Despite its name, a car accident loan works much differently than a typical loan. Lawsuit loans are issued on a non-recourse basis, which means you’re under no obligation to repay them. Your personal assets are never at risk from a lawsuit loan. Only your settlement itself can be taken as repayment for the debt.
What Determines the Amount of Money I Could Receive Through a Car Accident Loan?
The size of your potential settlement will ultimately determine the amount of legal funding you can obtain through a car accident loan. Typically, a legal funding company will award you anywhere from 10-20% of the amount of your potential settlement as a lawsuit loan. You may be able to obtain more or less than this depending on your needs.
How Much Do Car Accident Loans Cost?
The amount you pay for a car accident loan will depend on the interest rate you’re charged. This makes it important to only borrow what you need from your settlement. If your case takes months, or even years to resolve, as many car accident cases do, then your lawsuit loan’s interest rate could eat up much of your settlement.
A legitimate lawsuit loan company will only charge you simple interest at a low, often single-digit rate. Higher compounding interest rates could leave you with little to nothing left from your settlement by the end of a long case, even if you borrowed a relatively small amount. You also shouldn’t face any surprise fees or charges for your loan.
How Do I Apply for a Car Accident Loan?
Reputable legal funding companies make it easy to get a car accident loan. The process is typically fast and simple, allowing you to receive cash in your account in as little as a few hours.
In most cases, the process to apply for a car accident loan is as follows:
- You submit your application online, which can take just a few minutes.
- The legal funding company contacts your lawyer to discuss your case.
- The legal funding company contacts you in as little as 24 hours with an offer.
- You and your lawyer review the offer and sign the legal funding paperwork.
You can apply for additional lawsuit loans as your case progresses. You may find that your original amount wasn’t enough to cover your expenses. Depending on your needs, it may be possible for you to borrow against your entire settlement.
What Expenses Can Car Accident Loans Cover?
Car accident loans can be used to cover any expenses you might face after an accident. They’re often used to pay for the following:
- Medical bills
- Car repairs or for a new vehicle
- Rent or mortgage payments
- Groceries and utilities
- Child care expenses
- Credit card debt
Pre-settlement loans come with no strings attached and can be spent however you wish. Once you receive the money, it’s yours to keep regardless of the outcome of your case.
It’s advised that you should only take out a lawsuit loan if it’s absolutely necessary. However, you don’t need to be facing financial hardship to take out a lawsuit loan. There are cases where having some of your settlement now can help you, even if you’re on solid financial footing.
How Can a Car Accident Lawsuit Loan Help You Win a Larger Settlement?
Car accident cases often take over a year to settle or litigate, due in part to their complex nature. Accident scenes must often be reconstructed second by second in order to assign fault to the correct parties. To do this, evidence must be collected, which can take time…and money.
A pre-settlement loan can give your lawyer more time to build a stronger case on your behalf. This can ultimately help you win a larger settlement, especially if some new evidence is uncovered. You’ll also have the money you need to better resist pressure tactics by the defense.
Many plaintiffs are effectively forced to settle their lawsuits early, causing them to accept much lower settlements than they could otherwise afford. Even if your finances are sound right now, you should consider what having a portion of your settlement now could do for your case.
Can My Attorney Deny Me from Getting a Car Accident Loan?
Yes and no – your attorney must accept legal funding if you want to obtain a car accident loan while working with them. Some lawyers prefer not to involve third-party funding in cases they litigate because it can complicate the process by which they get paid. If your current lawyer doesn’t wish to accept legal funding, you may have trouble getting it for your case.
However, if your attorney doesn’t wish to use legal funding, you may have the option of finding another lawyer who is willing to use it. Depending on how your case is progressing, this may be more feasible in some circumstances than others. However, you are technically allowed to dismiss your lawyer at any time.
If you haven’t retained an attorney yet, you may want to find out if they accept legal funding before agreeing to their services.
How Do I Know a Car Accident Loan Is Right for Me?
Car accident loans offer numerous benefits, but they aren’t right for everyone. Here are a few questions to consider while you evaluate your options:
You’ve Been Injured and Face a Loss of Income
If you’ve suffered a serious injury from a car accident that affects your ability to work, a lawsuit loan could be right for you. You’ll have money to pay for medical care and to cover your immediate expenses. Best of all, you won’t have to worry about paying this money back, as that will come from your settlement.
You will eventually need to repay your lawsuit loan from your car accident settlement. However, the money you receive now could be crucial to keeping you in your legal fight.
The Insurance Company’s Settlement Offer Is Too Low
Insurance companies will try to low-ball you an offer for your accident in the hopes that you take a smaller settlement. This is how they make money. They will try to drag out negotiations in the hopes that you eventually give up and accept their offer.
If you have the ability to wait out these stall tactics, the insurance company will typically come to you with a better offer. The longer you can wait for your settlement, the more money they’ll offer you. A lawsuit loan can give you the financial ability to do just this.
With more time, your lawyer can also build a stronger case. This can help you win a larger settlement or award should your negotiations move to court.
You Want Risk-Free Cash Now
One of the key advantages that car accident loans have over other forms of financing is that they’re very easy to obtain. You can get a lawsuit loan in as little as 24 hours or even less depending on which lender you work with. Best of all, there’s no credit check or employment verification needed.
Other types of financing for your case, such as credit cards, personal loans, or even second mortgages, require lengthy application processes. They also carry limits on how you can use the money and must be ultimately repaid from your own assets. Lawsuit loans carry none of these disadvantages, making them an attractive financing option for many plaintiffs.
Apply for a Car Accident Loan Today!
Silver Dollar Financial can provide you with a car accident loan if you’re the victim of an auto collision. Our application process is fast and easy to complete. You could be approved for a lawsuit loan in just minutes and receive money in your bank account in 24 hours or less.
Apply for pre-settlement funding with us today through our website or with one of our live agents. We can answer any questions that you might have about getting a lawsuit loan and what one could mean for your case. With our help, you could have the financial ability to fight for the full award from your settlement – and the justice you deserve.