Interest Rates on Car Accident Loans: What to Know
If you were in a car accident, the damages can be devastating. You may have to pay for not only medical expenses but also the cost of repairing the damages to the vehicle.
When you’re seeking the aid of an attorney, you know who was at fault and your steps to compensation. You also know if you’re liable to receive compensation for the damages that were sustained during the accident.
But your bills, repairs, medical coverage, and other payments are not going to cover themselves. If you’re struggling to find the proper compensation for these costs, you may qualify for a car accident loan to help you pay for these costs until your car accident claim is settled. Here’s how the team at Money First Funding can help you recover.
Car Accident Loans Defined
When you’re hurt in a car accident, you may need money now, but your claim is still in court or being negotiated with the insurance companies, leaving you without the funds you need. With a car accident loan, you can get a non-recourse cash advance against your potential settlement.
Even if you lose your case, you won’t owe a dime on the loan. Here are the steps you’ll take if you seek out a car accident loan:
- Apply for the funding
- The company talks with your attorney handling your case
- Get approval to obtain the funding for your car accident claim and a loan offer
- Your attorney reviews and signs the agreement with you
- You receive the cash you need
- You pay back the loan with the money you receive from your settlement
Make sure you read up on these specific loans to determine if they offer you the restitution you require for your particular case. It is important to understand the pre-settlement financing process you’ll go through fully.
Paying Back a Car Accident Loan
Car accident loans are not loans at all, but cash advances that are placed against the potential settlement amount you’ll get from a case. These are not actual loans so they are not subject to the lending laws other loans are subject to.
These loans are contingent upon having a settlement, and if you don’t receive one, you’re not required to pay back any funds you have borrowed.
Additionally, you have no requirement on how and when to use the money for your situation. Many people generally choose to use the funds to help cover expenses that come with a personal injury lawsuit. This can include but is not limited to medical bills, legal fees, living expenses, and other payments.
Our Fees and Interest Policy
We understand how devastating and expensive a car accident can be. You’re already struggling to get your bills and even basic living expenses covered in the wake of a devastating accident. That’s why we put as little strain on you as possible.
First, we don’t charge interest. We charge a single annual fee, which means you don’t have to worry about paying more than what you agreed.
Second, we don’t charge hidden fees. You pay what you and your lawyer agree to pay, and no more. Our team can review this policy and exactly what you’ll be expected to pay when we take a look at your claim.
Qualifying for a Car Accident Loan
If you’ve suffered any injuries due to an accident and have hired an attorney for help, you generally qualify. Most accidents and injuries are usually covered by any pre-settlement accident loans.
This could be any accident involving motorcycles, buses, bikes, or other vehicles. They have to result in some sort of injury.
The amount of money you’re going to qualify for depends on the severity of the injuries sustained. The pre-settlement loan is usually based on the potential settlement you are expecting to receive.
The larger the amount of that settlement, the larger the amount you’ll be qualified for. Depending on the injuries sustained, you can receive up to $2.5 million in some instances.
Will I Have to Get My Accident Attorney Involved?
Yes, you will have to have your attorney involved in this process. Our company will speak with your attorney regarding your specific case, and the settlement amount you’re looking at receiving, and also sign the funding agreement if you’re approved.
You will receive the funds without having any unnecessary risks involved. With you and your lawyer in agreement, you can rest easy knowing that your finances are handled.
How Long Does it Take to Get a Cash Advance?
There is no guarantee on the amount of time it takes to receive your funding once approved, but generally, it is done within a few days.
Your accident attorney has to speak with us first and once they do, and your agreement is signed, you’ll have the funding within days.
Many of these cases can last a very long time, which makes it difficult to get a settlement until the case is resolved. This means you’re subject to larger interest and fees that get tacked onto your funds.
Will the Loan Hurt My Credit Score?
No, getting this loan will not hurt your credit score. It may actually work in your favor for the pending settlement that you have.
You will be able to pay off the pending bills that you have with the help of this loan, allowing you to reduce the chances that these bills will harm your credit score.
How Do I Know if a Car Accident Loan is Right for Me?
To seek out a car accident loan, you will have to be seriously injured due to the accident and unable to work.
A car accident loan may be right for you if the insurance companies you’re working with are lowballing you. These companies are often focused on protecting their profits, not your future. The longer you sit on the case, the more the insurance company knows you’re serious.
You need cash now, not later, following a car accident. Your credit score and the amount of money you make have no bearing on whether you get the loan or not. If you feel these funds will help your recovery, talk to your lawyer about the possibility of a loan and what it can do for you.
Contact Our Funding Company for Options
If you’re ready to learn more and get more information on funding options then speak with the right company who can provide the information you need. We can answer any questions you may have while providing additional information to help you make a more informed decision on whether a car accident loan is right for you and the needs you have.
Contact the professionals at Money First Funding by calling 702-623-3333 or fill out the following online contact form when you’re ready to act.