Pre-settlement funding provides financial relief to plaintiffs awaiting legal settlements, but many potential applicants wonder about credit requirements. If you’re wondering whether or not your credit score will impact your ability to get money from your pending lawsuit, we’ll explain how the approval process works, and what factors truly matter when seeking this type of financial assistance.

What Is pre-settlement funding?

Pre-settlement funding (also called lawsuit loans, litigation financing, or settlement advances) provides cash advances to plaintiffs involved in pending legal cases. These advances are repaid from eventual settlement proceeds, allowing plaintiffs to cover living expenses and medical bills while their cases progress.

The credit score question

The short answer: No, your credit score typically does not matter for pre-settlement funding.

Unlike traditional loans, pre-settlement funding companies generally do not check credit scores during their application review process. This makes pre-settlement funding accessible to plaintiffs regardless of their credit history.

Why credit scores don’t matter for pre-settlement funding

Pre-settlement funding differs fundamentally from conventional loans in several key ways:

1. Non-recourse financing

Pre-settlement funding is non-recourse, meaning if you lose your case, you typically owe nothing. This structure eliminates the need for credit checks since repayment depends on the case outcome, not your ability to make monthly payments.

2. Collateral-based approval

Funding companies secure their investment against your potential settlement, not your personal assets or income. Your future settlement serves as the collateral.

3. Risk assessment focus

Instead of evaluating your creditworthiness, funding companies assess the strength and potential value of your legal claim. They’re investing in your case, not lending based on your financial history.

What pre-settlement funding companies actually evaluate

Funding companies focus on these factors when reviewing applications:

1. Case merit and liability

• • Clear liability on the defendant’s part.
  • Strong evidence supporting your claim.
  • Likelihood of winning or settling favorably.

2. Potential settlement value

• • Severity of injuries or damages.
  • Medical expenses incurred.
  • Loss of income or earning capacity.
  • Pain and suffering considerations.

3. Insurance coverage

• • Defendant’s insurance policy limits.
  • Insurance carrier’s reputation for settlement.

4. Legal representation

• • Your attorney’s experience and track record.
  • Law firm’s reputation in handling similar cases.

5. Case timeline

• • Estimated time until settlement.
  • Stage of litigation (discovery, negotiation, trial preparation).

The application process

The typical application process includes:

1. Initial application – Basic information about you and your case.
2. Documentation review – Case files and medical records.
3. Attorney consultation – Your lawyer confirms case details.
4. Underwriting – Risk assessment by the funding company.
5. Funding decision – Approval or denial with funding amount.
6. Contract signing – Agreement on terms and fees.
7. Fund disbursement – Money transfer to you.