Not All Financial Loans Are The Same
A lot of people believe a personal loan and many other financial loans are the same. This couldn’t be any further from the truth. What is true is that there are different financial loans. The type of financial loan most people are aware of are “consumer loans“. Examples of these financial loans are personal, auto, and student loans. This financial loan type is one that just about anyone can get as long as their financial history is in order.
What Is A Personal Loan?
A personal loan is a financial loan type that is acquired by being approved for borrowing funds from a credit union or a bank. This type can used for anything that the person wants to use the funds for. Personal loans can pay things such as medical bills, or educational bills. Furthermore, a personal loan will have paid be back once you have received the cash advance.
Lawsuit Loan Vs Personal Loan
A lawsuit loan is very different from a a personal loan. The first difference is that a lawsuit loan is not able to used by a regular consumer. This is because one requirement of getting a lawsuit loan is that you have a lawsuit that is going on. Furthermore, the purpose of a lawsuit loan is help someone who is needs a pre-settlement advance on funds while their case is still pending. Now we will discuss more differences between these two loan types.
Differences between lawsuit and personal loans
1. The State You Reside In Effects Your Cash Advance
A personal loan can be received in any state that you’re in, but this is different from a lawsuit loan. Lawsuit loans come from lawsuit funding companies and these companies have to abide by state regulations. These regulations prevent some these companies from providing a cash advance in certain states. Ultimately, this means the state you reside in can determine whether you’ll be able to get a cash advance from certain lawsuit funding companies, or not.
2. Personal Loans Can Pay For Anything
Personal loans can be used for anything after the cash advance have been received. Furthermore, this means there isn’t a limitation to what you can use the funds for. This could be things as buying household items, or taking care of other debts. On the other hand, lawsuit loans are used to cover bills that can not be covered due to a lawsuit awaiting settlement.
3. Paying Back Personal Loans
You will have to pay back your cash advance from a personal loan. This will be done by the creditor of the loan putting you on a payment plan. Additionally, this will result in collections, or garnishments if you’re able to pay back the loan using the payment plan. However, with a lawsuit loan only requires a repayment if you win your case. Furthermore, this makes a lawsuit loan less risky for you than a personal loan.
4. Lawsuit Loans Do Not Effect Your Financial History
A personal loan will always effect your financial history. This is because a creditor, or bank uses your financial history to make sure you’re able to get approval for this type of cash advance. The effect that a personal loan can have on your financial history can be good, or bad. The determining factor for this is if you’re making your payments back for your personal loan by the agreed upon time by the lender. On the other hand, lawsuit funders do not primarily use your financial history to provide a cash advance. Ultimately, this means your financial history will remain the same after a lawsuit loan.
Personal loans and lawsuit loans are not the same thing just because they both have the word “loan” in them. Lawsuit funders refer to lawsuit loans as “loans” being that it’s easier for people to understand. It’s understandable that it can be confusing to understand the difference between the two. The main thing to remember is that you should only seek a lawsuit loan when you’re in pending lawsuit, but only seek a personal loan when you need a cash advance for anything else. Furthermore, if you need lawsuit funding you can reach out to Thrivest Link for this. Feel free to contact us and ask questions on how lawsuit funding works.