Can You Get Two Pre-Settlement Loans? Everything you need to Know
Can You Get Two Pre-Settlement Loans? You may have heard of pre-settlement loans, but have you ever wondered if you can get two of them?
It’s possible, but it’s not something that most people try. Before you decide to do this, keep in mind that there are things you need to know before you borrow money from any source to get the best result possible.
This article will discuss how to get two pre-settlement loans and why it may or may not be the right move for your case.
Here is a break down of what we will be covering today.
What Is a Pre-Settlement Loan?
If you’re considering a personal injury lawsuit or another type of lawsuit, it may be tempting to seek an advance from a third party. These pre-settlement loans are technically known as pre-settlement advances.
And as their name , they can be helpful during times of financial need. However, there are important considerations and restrictions you should know about before taking one out.
What Legal Funding is
First off, let’s define legal funding: it’s when an outside entity gives you money before you win your case—specifically for living expenses.
Commonly referred to as loans, advances on settlements, or pending settlements loans, these funds are only given to people involved in legal action against someone and have a high probability of getting a big settlement out of it.
They help people pay their bills while they wait for their court dates. Every day, there is another story about someone who has been wronged by someone else and was able to get large sums of money after winning a lawsuit against them—and sometimes even more than once!
When a Second Pre-settlement Loan Might be Approved
Suppose you have a good settlement attorney negotiating with your insurance company and doing everything possible to ensure that you are properly compensated for your injuries. In that case, another lender may approve a second pre-settlement loan.
To qualify for another loan in these cases, generally, there needs to be sufficient cash flow in your case to make monthly payments on both loans.
The bottom line: Get all of your bills paid off as soon as possible after an accident so that if you need additional money later on down the road, you’ll have options.
Applying for Multiple Pre Settlement Loans
When you get a pre-settlement loan, one of your biggest concerns is whether or not you can apply for more than one at a time.
Can you get two pre-settlement loans? Does applying for more than one hurt your chances of getting another and a few other questions that usually follow.
The answer is simple: yes, you can apply for multiple pre-settlement loans simultaneously, but some things will determine if it hurts your chances.
Having bad credit will not be enough to keep lenders from giving you what you need to secure another claim.
They had done their due diligence on borrowers before and know that credit is just something they can overlook if they see someone committed and has been through similar situations when they were applying for initial funding.
What a Lending Company Wants
Before you go pre-settlement, understand what lenders want and need. Lenders want you to settle a case before it goes to trial.
Your chances of settling will increase with every settlement offer presented on your behalf. Can You get two pre-settlement loans: Some lending companies want or require that you use their attorney for mediation and negotiation.
To get an answer right away, talk directly with a loan agent rather than through an attorney to find out if they’re open to doing a second loan.
Most attorneys don’t have access to money quickly enough to fund more than one pre-settlement loan, so be prepared for them to recommend another lender who can do it immediately.
How Exactly Does a Pre-Settlement Loan Work?
The primary benefit of a pre-settlement loan is that it gives you access to money while your case is pending. So can you get two pre-settlement loans?
The short answer is yes. If your lawsuit is pending, and you have been granted funding from one source, another lender can give you a second loan so long as they abide by state laws on dual lending.
How do Lawsuit Loans Work?
Lawsuit loans are pre-settlement loans. It means they are only paid back after a settlement has been reached in your case.
Lawsuit loans help plaintiffs pay bills and buy everyday items that they otherwise wouldn’t be able to afford while waiting for their settlement.
In exchange for making monthly payments until a settlement is reached, lawsuit lenders charge higher interest rates than traditional bank loans—typically between 10 percent and 15 percent per month.
These higher interest rates often make it financially impossible for plaintiffs to repay them before settling, resulting in paying off both a loan and a lawsuit settlement at once.
FAQs on Can You Get Two Pre-Settlement Loans? Everything you need to Know
Who qualifies for pre-settlement loans?
The second is an institutional loan from a bank or other financial institution. Private lenders tend to have fewer restrictions than institutional lenders, but they also tend to charge higher interest rates and have higher fees.
There are caps on how much interest institutional lenders can charge, and some states even regulate what those caps are.
However, there isn’t a cap on how much an individual or business can charge in fees if they decide to offer you a pre-settlement loan, so you must know what your potential lender will be charging you.
How much can I receive in pre-settlement loans?
It’s a common belief that you can only receive one pre-settlement loan. The truth is that there is no maximum amount you can request.
However, lenders will look at your case differently depending on how much money you need to borrow.
If you face a large amount of financial hardship (such as an injury or death), multiple lenders may be willing to work with you and offer larger loans with lower interest rates.
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