They say knowledge is power, and that was never truer than when taking out any type of loan, especially a lawsuit funding loan. Educating yourself about the funding process can equip you to get the best rates and make the most informed decisions when finding the lawsuit loan that is right for you.
There are hundreds of companies and brokers that advertise car accident loans and other types of personal injury loans in NYC, intended to help you manage your finances while you wait for your case to settle. But not every accident loan company in NYC has equal terms, and you could end up paying hundreds more than your original loan amount.
Here is what you need to know before taking out a personal injury loan:
- Lawsuit funding can be more expensive than borrowing money from a family member or using your credit cards to meet expenses. Lawsuit funding fees are often based on the perceived risk of you losing your case. Make sure you know what you are getting into before agreeing to a lawsuit loan.
- Brokers are not funders…they give out your case details to a pool of funders who then decide if they want to take on your case. Using a broker can cost additional fees, and your personal information will be shared with people you do not know.
- Talk to your lawyer before getting lawsuit funding. They can steer you away from disreputable lenders and give you legal guidance to help you get the best terms. They can also give you an idea of whether you are likely to qualify for legal funding.
- A lawsuit loan can work in your favor to get a larger settlement. Insurance companies want to settle quickly, giving you the lowest offer they can get away with. If you are stressed about money, you may be tempted to take their offer, just to ease the pressure. A lawsuit loan can tide you over while you hold out for a larger settlement.
- Take charge of the process. You are already the victim of an accident…don’t become the victim of unscrupulous lenders who try to take advantage of you. Ask questions about interest rates and fees, and don’t be afraid to walk away from what looks like a bad deal.
- Don’t apply to too many lenders. Do some research and choose reputable firms with a successful track record. Overwhelming your lawyer with multiple inquiries can slow down the process and delay your funds.
- It’s not really a loan in the traditional sense. Legal funding is a cash advance against your final settlement amount. If you don’t win, you are not liable to repay the money. If you win your case, your original loan amount plus interest will be deducted from your settlement.
Legal Funding in NYC
If you are struggling to meet your everyday expenses while you wait for your case to settle, a lawsuit loan might be right for you. At Cronus, we pride ourselves on integrity and transparency. Our friendly customer service professionals will walk you through the application process, and make sure you understand the terms before you sign any documents. Contact Cronus today, and take the guesswork out of legal funding while you wait for your personal injury case to settle.