Seven Simple Postulates About Bad Credit Loans That Are Often Overlooked

Bad credit is often a result of temporary financial difficulties. The dilemma usually is that the worse your credit, the more your need for financing is. Getting back to good shape financially seems almost impossible with such a proposition. Many people see no light at the end of the debt tunnel they are in, giving up hopes of getting a loan that would help them to organize their finances and to get back on track.

Temporary cash shortages are no problem for people with good credit, as they easily qualify for personal loans with decent rates and terms. However, this may pose a real problem for people with bad credit. Well, if you play your cards just the right way, you may be able to get financing you need. There are a number of things you need to know about applying and qualifying for a loan with bad credit.

1. Lenders consider a number of factors besides your credit score:

Do not get discouraged by your low credit score. Since all lenders are different in terms of underwriting, getting qualified for a loan is a matter of being matched with the right lender.

2. There is a wide array of lending products:

With different lenders operating in the marketplace today, there are multiple loan options to consider even with bad credit, from equity loans to personal loans and cash advances.

3. Having no collateral does not mean the end of the world:

Many people are under an impression that they are only able to qualify for secured loans with bad credit. There are a number of unsecured loans, commonly called signature or no-collateral loans, specifically geared towards people with past credit problems. While they feature higher interest rates, they are a feasible solution to many people in financial need.

4. Consider payday loans as a short-term solution:

Payday loans are great to cover financial gaps for people with steady income. Usually granted for a short periods of time, they allow you to catch up on past due obligations until your next paycheck is due.

5. You have better chances of approval if you have honored your past obligations:

This may sound odd for many bad credit borrowers, but it is true. Your credit history may be ruined just because of late payments or due to a bankruptcy. Lenders will be more willing to approve you for a personal loan if they know that you pay, even if you pay slowly. If they know that you turned your back on lenders who entrusted you with their money, your chances are way lower.

6. Be prepared to prove your identity, income, and residency:

While credit scores may be overlooked by many lenders, they need to know who you are, how to find you, and what means you are going to use to repay the loan. Be prepared to do some paperwork!

7. Shop around before committing to any offer:

Always look around! Many lenders may be willing to get your business, but it is important to get the terms that you are comfortable with. Therefore, look online for as many lenders you may find in order to get the best deal on your next loan.

Finance Your Personal Injury Lawsuit

80% of personal injury plaintiffs end up abandoning their lawsuits or accepting unreasonably low settlements because of the immense financial strain. Their injuries arose due to another person’s carelessness. As a result, they lose income when taking leave for medical treatment and incur further medical expenses.

The sensible course of action is to file a lawsuit for rightful compensation on lost income and pain and suffering. Yet, the lawsuit ends up taking a long duration of time and cost significant amounts of money. In the end, the plaintiff is forced to accept low offers to prevent the prolonging of the litigation.

However! this should not be the case. There are avenues to receive money for lawsuits in the form of a cash advance. This would cover the plaintiff’s living expenses and other critical bills.

Few plaintiffs know about lawsuit financing, which is known also as lawsuit loan, settlement financing, lawsuit advance and lawsuit funding. A lawsuit loan, is not a conventional loan. It is a non-recourse cash advance given to the plaintiff. The plaintiff has to repay the lawsuit advance only when he/she receives settlement from the lawsuit. If the case is lost and no settlement is received, the plaintiff does not have to repay the lawsuit financing company.

Some other differences between a conventional loan and a lawsuit loan are the factors reviewed by the lending parties. For example, to get a bank loan, the bank will review your credit rating and employment. Their lending policies are stricter. On the other hand, to apply for lawsuit financing, the lawsuit financing company will review your case to determine the likelihood of receiving settlement. Most of the time, personal injury lawsuits are won by the plaintiff.

Even though the fees for lawsuit advances are higher than a conventional loan, the lending policies of the financing company is based only by your case. And you do not even have to fork out any cash to repay the advance or fees if you lose the case. The repayment of advance and fee is only settled when you receive your lawsuit settlement.

Use Lawsuit Financing For Auto Accident Lawsuits

Stanley was certainly at the wrong place and at the wrong time. He had been driving home from work using the normal route. While on the highway, the car in front of him suddenly swerved left resulting in a collision. As a result, Stanley was severely injured and was unable to report to work for two months.

Not only was his income affected, but he could barely afford to pay for his medical treatment.

He filed for a lawsuit through his personal injury lawyer against the reckless driver, so that he would be compensated for his lost income, medical fees and pain and suffering. Pending the lawsuit settlement, Stanley fell into a financial crisis and could not pay for rent. The legal expenses were mounting.

Because of his temporary loss of income and average credit rating, the bank declined his application for a loan.

The above is a familiar story that happens to many victims of auto accidents. People like Stanley file a lawsuit to be compensated for their loss resulting from the accident. But they end up in worse financial crisis due to the prolonged duration of the lawsuit. The loss of income, coupled with legal fees, medical fees, living expenses and critical bills, forces them to accept low ball settlements to shorten the lawsuit and get back to their normal lives.

Many people do not know that there is another option of financing or ‘loan’ for their lawsuits. This ‘loan’ does not involve the bank and is often called lawsuit loan or lawsuit financing.

Lawsuit financing is a cash advance from the lawsuit financing company, which allows the plaintiff to pay for their living expenses during the litigation. This lawsuit cash advance need not be repaid if the lawsuit is lost or abandoned. This means the cash advance need only be repaid with a fee if the plaintiff receives settlement from the lawsuit.

In addition, the conditions for applying for a lawsuit ‘loan’ are different from getting a bank loan. Lawsuit financing companies are not interested in your credit ratings or employment history. Instead, they review your case and advance you cash based on the likelihood of winning.

In most cases of auto accident injuries, the plaintiff would receive the settlement eventually. So, there should be no problems applying for a lawsuit cash advance.