Lawsuit Loan: What’s a Good Interest Rate?
When a settlement loan is taken out, interest rates typically have to be paid in addition to the amount borrowed. These rates can range from lender to lender. It is in the borrower’s best interest to find the lender offering the lowest rate.
When taking out a pre-settlement loan, you don’t want to move from one financial crisis to another, if interest rates are too high. The team at Money First Funding understands, and we want to make your recovery affordable. If you’re unsure you’re being offered a fair interest rate for your lawsuit loan, here’s what you need to know first.
The Average Interest Rate on Lawsuit Loans
Lenders are able to set their own terms on rates. These companies want to offer low enough interest rates to gain business, but also to be profitable enough for their investors.
The average interest rate for a pre-settlement loan is around 60 percent per year nationwide. They come in a range of 24 percent for attorneys on the case and around 41 percent for plaintiffs. These amounts can be higher than other rates offered by funding companies.
In Nevada, however, your interest rate is capped at 40 percent. That means you’ll never face worse interest rates in the state than 40 percent.
Lawsuit loans are also different in other ways. Most of these lenders do not consider credit scores, employment, or physical collateral, for example. These loans are also non-recourse loans. That means if your claim is not a success, you don’t have to pay back your lawsuit loan on top of the expenses you’re already facing from an unsuccessful lawsuit.
What Are The Best Pre-Settlement Interest Rates?
The best funding companies will provide low rates and more favorable terms for the borrower. Your case will be evaluated based on merit. Usually, you can borrow up to 10 percent of the expected settlement amount. This number depends on your expenses and what you and your attorney are seeking.
In some cases, with pre-settlement loans, the company can provide one yearly charge instead of interest throughout the months. This is what you can expect with Money First Funding. One easy-to-understand annual fee is all that is required to borrow against your expected settlement amount.
That can take a lot of stress off your shoulders during this difficult time. In many cases, interest becomes a difficult hurdle for people in debt, leaving them paying more interest, in some cases more than the principal amount they owed. We want to make your recovery simple for you.
Contact the Funding Professionals
Seeking financial help during a case where you’re expecting a settlement is beneficial. Working with a funding company that offers the best rates is important. Work with funding professionals that are there for you.
Reach out to Money First Funding for information on the rates and fees to expect when borrowing with them. Obtaining money now rather than waiting for later can help you in more ways than one. Call 702-623-3333 today to find out what to expect when borrowing.