Do Pre-Settlement Funding Companies Require Credit Checks?

Why Pre-Settlement Funding Does Not Require a Credit Check

Pre-settlement funding, also called a lawsuit loan, is a non-recourse cash advance against your future settlement, not a traditional loan. Because repayment is only required if you win or settle your case, personal credit history and finances are not part of the lawsuit loan approval process.

Legal funding companies instead review:

• The facts and evidence of your case.
• The estimated settlement value.
• Basic case information from your attorney to verify details.

Since repayment comes directly from your settlement proceeds, there is no credit inquiry, no impact on your credit score, and no debt owed if your case is unsuccessful.

Relevant FAQ guide: What Is Non-Recourse Legal Funding?

Will Pre-Settlement Funding Affect My Credit Score or Report?

No. Applying for or receiving pre-settlement funding will not affect your credit score or appear on your credit report. It is not a traditional loan, so it is not reported to credit bureaus. Repayment is handled by your attorney at the end of the case, meaning no worries of missed payments or delinquent accounts.

No Impact on Your Credit Score

Pre-settlement funding is a non-recourse cash advance, not a traditional loan. That means:

• No hard or soft credit checks are performed.
• Your credit score remains unchanged whether you are approved or not.
• Because repayment only occurs if you win or settle, there are no late payments or defaults that could harm your credit.

Not Reported to Credit Bureaus

Pre-settlement funding is not reported to major credit bureaus like Equifax, Experian, or TransUnion. This ensures:

• No new accounts are added to your credit file.
• No debt collection entries appear if your case is unsuccessful.
• Your credit report remains completely unaffected by applying for or receiving legal funding.

By separating funding approval from credit history, legal funding provides a way for plaintiffs to access financial relief without leaving any trace on their credit profile or putting their score at risk.

🟢 Ready to get started? Apply for Pre-Settlement Legal Funding Online

Credit Check and Credit Reporting: Pre-Settlement Funding vs. Bank Loans and Credit Cards

Why Don’t Lawsuit Loan Companies Check Credit?

Lawsuit loan companies—also called pre-settlement funding companies—don’t check your credit because approval is based entirely on the strength of your legal case, not your financial history. The advance is non-recourse, meaning you only repay if you win or settle your case.

Since repayment comes directly from your settlement proceeds (handled by your attorney), there’s no need for the company to assess your creditworthiness, income, or employment status. 

This makes legal funding accessible to plaintiffs with poor or no credit, without risking negative marks on their credit report.

What Are the Requirements to Qualify for Legal Funding?

To qualify of pre-settlement funding, Express Legal Funding generally requires that you:

• Have an active claim or lawsuit, often a personal injury case.
• Be represented by a licensed attorney on a contingency fee basis.
• Have a case with sufficient potential settlement value to cover the requested advance.

No credit check, financial documents, pay stubs, or bank statements are required. The settlement serves as collateral.

Learn more about your attorney’s role in the legal funding process in this FAQ guide:
Do I Need a Lawyer to Get Legal Funding?

How Pre-Settlement Funding Underwriting Works

Even though pre-settlement funding does not require a credit check, reputable companies still use a structured financial underwriting process to decide whether to approve your application and how much to advance.

Unlike a traditional bank loan or credit card application, this review focuses entirely on the legal and financial strength of your case — not your income, credit score, or personal assets.

Typical Pre-Settlement Funding Underwriting Steps Include:

1. Attorney Communication: The funding company contacts your lawyer to confirm representation and request essential case documents. These may include accident reports, medical records, demand letters, or insurance policy information.
2. Identity Verification: The funding company confirms the applicant’s identity, often using resources like a TLO search or similar databases. This step ensures you are the rightful claimant, helps prevent fraudulent applications, and may reveal existing liens or judgments related to your case. While it involves reviewing certain public and financial records, it is not related to a credit check and does not affect your credit score.
3. Case Review: An underwriter evaluates the key facts — liability (who’s at fault), damages (both economic losses like medical bills and lost wages, and non-economic damages like pain and suffering), and available insurance coverage.
4. Settlement Value Estimate: Using the evidence and documentation provided, the company estimates a realistic settlement range, factoring in liens, medical expenses, and attorney fees.
5. Advance Amount Calculation: To reduce risk for both sides, most companies advance 10–20% of the net settlement (the amount expected after attorney fees and liens are paid).
6. Approval & Contract: If approved, you receive a clear funding agreement outlining the advance amount, fees, and repayment terms.

How Legal Funding Companies Assess Risk and Approve Cases Without Credit Checks

Case Strength Assessment Process

Because pre-settlement funding is non-recourse, repayment only happens if your case is successful, and the funding company is paid directly from your settlement proceeds. This is why approval is based on the strength of your case—not on your credit score, income, or employment history.

Key elements assessed include:

• Strength of Liability Evidence: Clear proof of fault, backed by police reports, witness statements, or expert testimony.
• Damages Documentation: Verified medical bills, treatment plans, and wage-loss records to support the claimed damages.
• Insurance Policy Limits: Sufficient coverage to realistically pay the anticipated settlement amount

Risk Evaluation Methodology

Once the case strength is established, underwriters determine the funding amount and repayment structure by reviewing:

• Stage of Litigation: Cases closer to trial or with settlement offers carry lower risk.
• Jurisdiction & Jury Trends: Courts known for higher awards may increase potential settlement values.
• Existing Liens or Claims: Medical or other liens, such as overdue child support payments, that could reduce the plaintiff’s net recovery.

Why it matters:
A careful underwriting and risk evaluation process protects plaintiffs from borrowing too much against their settlement — helping ensure they still receive meaningful compensation after repayment. It also allows funding companies to remain financially sustainable, so they can continue helping future plaintiffs.

Regulatory Compliance and Consumer Protections

Pre-settlement legal funding is regulated at the state level in many parts of the U.S., with rules designed to protect consumers and promote transparency. While there is no single federal law governing credit checks for funding, states that address legal funding in their statutes or case law do not require them because approval is based solely on the case’s merits.

For example, under Missouri’s Consumer Legal Funding Act (Mo. Rev. Stat. § 436.564), pre‑settlement funding companies are prohibited from reporting a consumer to a credit reporting agency if the net settlement proceeds are insufficient to cover repayment.

This underscores the industry standard of approving funding based on the merits of the legal claim—not on your personal credit history.

While the Consumer Financial Protection Bureau (CFPB) does not directly regulate all aspects of pre-settlement funding, its mission to prevent unfair or deceptive financial practices influences how reputable companies operate.

At Express Legal Funding, we strive to follow transparency standards consistent with CFPB principles, ensuring contracts are clear, accurate, and free from misleading terms.

Key protections we provide:

• Privacy: We do not access or share your credit report.
• Non-recourse guarantee: You owe nothing if you lose your case.
• Transparent contracts: All terms and fees are disclosed in plain language.
• No hidden fees: Costs are explained upfront.
• Compliance with state laws: We meet or exceed all state-specific requirements.

FAQs About Getting Legal Funding Without a Credit Check

Does pre-settlement funding show up on my credit report?

No. Pre-settlement funding does not appear on your credit report and will not impact your credit history or credit score in any way.

This is because pre-settlement funding is not a traditional loan and is classified as a non-recourse cash advance against your future settlement, not a form of consumer credit.

Since there is no credit check during the approval process and repayment is handled directly through your attorney after your case resolves, there are:

• No hard inquiries that could lower your score.
• No monthly payments reported to credit bureaus.
• No debt collection actions if you lose your case.

In short, receiving pre-settlement funding leaves no trace on your credit profile — making it a safe option for plaintiffs who want to protect their credit while getting the financial support they need.

Can I get legal funding with bad credit?

Yes. Having poor or no credit will not prevent you from qualifying for pre-settlement legal funding.

That’s because approval is based entirely on the strength and potential value of your lawsuit, not your credit history or financial background.

This makes pre-settlement funding a realistic option for plaintiffs with low credit scores who need financial help during a lawsuit but want to avoid the barriers and risks associated with traditional lending.

Do I need to be employed to get pre-settlement funding?

No. Your employment status is not considered when applying for pre-settlement legal funding. Approval is based on the facts of your case, not your employment status or income.

This makes legal funding a viable option for plaintiffs who may be out of work due to their accident or injuries and need financial help while their case proceeds.

What happens if I lose my case?

If you lose your case, you owe nothing back. This is the defining feature of non-recourse legal funding — the repayment obligation exists only if you win or settle your lawsuit.

Because the advance is secured solely by the expected settlement, the funding company assumes all the financial risk. That means:

• If your case is unsuccessful, the balance is completely forgiven.
• You won’t face collections, wage garnishment, or any impact on your credit.
• Your personal finances remain protected regardless of the outcome.

This risk-free structure allows injured plaintiffs to access the money they need during a lawsuit without the fear of being burdened by debt if their case does not resolve in their favor.

Does pre-settlement funding affect getting a mortgage or loan?

No. Pre-settlement funding does not appear on your credit report and does not affect your credit score, so it should not impact your ability to get a mortgage, car loan, or other financing. Since it is a non-recourse cash advance (not a loan) repaid only if you win or settle your case, there are no monthly payments, delinquencies, or debt records reported to credit bureaus. 

However, lenders may still consider your overall financial situation, so it’s best to consult your mortgage or loan officer if you have concerns.

How is legal funding different from a loan?

Pre-settlement legal funding is not a traditional loan — it is a non-recourse cash advance secured by your future settlement. This means you only repay if you win or settle your case.

Unlike bank loans or credit-based financing, legal funding has unique advantages:

• No monthly payments: Repayment happens in one lump sum from your settlement, handled by your attorney.
• No personal guarantees: You are not personally liable for repayment if your case is unsuccessful.
• No credit checks: Approval is based solely on your case’s merits, not your credit history or income.
• Risk-free if you lose: If your case does not result in a settlement or award, you owe nothing back.

Because repayment is tied directly to your case’s outcome, legal funding provides plaintiffs with immediate financial relief without adding debt or jeopardizing personal assets.

Relevant FAQ guide: Does Pre-Settlement Funding Require Monthly Payments?

How much money can I get through pre-settlement funding?

The amount you can receive depends on the value and strength of your case. Most pre-settlement funding companies, including Express Legal Funding, typically advance around 10% to 20% of your anticipated settlement amount.

For example:
If your attorney estimates your case may settle for $50,000, you could receive $5,000 to $10,000 as an advance.

Key Factors That Influence the Amount:

• Case value: Higher potential settlements generally qualify for larger advances.
• Liability and damages: Stronger cases with clear liability may receive higher offers.
• Stage of litigation: Cases closer to settlement or trial often qualify for more funding.

Remember, because this is non-recourse funding, you only repay if you win or settle your case — and repayment comes directly from your settlement proceeds.

How long does it take to get the money?

Once your application is approved and your funding contract is signed, most clients receive their money within 24 to 48 hours — and in many cases, the same day.

At Express Legal Funding, we streamline the process because we understand that plaintiffs often need immediate access to cash for living expenses, medical bills, or other urgent costs while waiting for their case to settle.

The speed of funding depends on:

• Contract completion: The sooner you sign and return your funding agreement, the sooner we can release the funds.
• Attorney cooperation: How quickly your attorney provides the required case documentation and signs their acknowledgement of your Irrevocable Letter of Direction (this document instructs your lawyer to repay the funding company directly from your settlement proceeds).
• Approval timing: Applications finalized earlier in the day are more likely to receive same-day funding due to bank cutoff times.
• Payment method: Direct deposit or wire transfers typically arrive faster than mailed checks.

By expediting our review, contract signing, and payment steps, we help clients access the cash they need without unnecessary delays.

What are the fees or interest rates on pre-settlement funding?

Fees and interest rates for pre-settlement funding vary by provider and can depend on your case’s value, how long it takes to resolve, and the company’s pricing structure.

How some legal funding companies charge interest and fees:

• Simple interest: a type of interest that accrues only on the original advance amount, leading to slower growth of the repayment total.
• Compounding interest: a type of interest that is charged on both the original advance and previously accrued interest, which can cause the repayment amount to grow much faster over time.
• Flat fees: This pricing structure involves fixed costs added to the repayment, regardless of the length of the case. Examples include origination and administrative fees added to the contract.

Because costs can add up significantly, it’s essential to:

• Review your contract carefully before signing.
• Ask for a clear total payoff estimate based on your attorney’s expected case timeline.
• Compare multiple providers to ensure you’re getting fair and transparent terms.

Go beyond the basics and uncover a detailed explanation of fees, interest, and repayment terms in our guide: How Much Does Pre-Settlement Legal Funding Cost?

At Express Legal Funding, we believe in clear, upfront pricing so you always know exactly what to expect. Our lawsuit loan calculator can help you estimate the potential cost of borrowing legal funding.

Can I use the money for any purpose?

Yes. Once you receive pre-settlement funding, the money is yours to use however you need — there are no spending restrictions.

Many plaintiffs use the funds to cover essential living expenses and keep up with bills while their lawsuit is pending.

Common uses include:

• Rent or mortgage payments to keep your housing stable.
• Medical bills related to your injuries or ongoing treatment.
• Utilities such as electricity, water, phone, and internet.
• Groceries and other everyday household needs.
• Paying down debt to avoid high interest or late fees.

Because the advance is based on your expected settlement — and repayment only happens if you win or settle — you can use the funds to relieve immediate financial pressure and focus on your recovery and your case.

What types of cases qualify for legal funding?

Most personal injury and similar civil cases can qualify for pre-settlement legal funding, as long as there is a strong likelihood of receiving a settlement or court award. Eligibility is based on the merits of your case and whether your attorney can confirm the necessary case details — not your credit score or personal finances.

Common case types that qualify include:

• Car accidents and other motor vehicle collisions.
• Slip and fall injuries and other premises liability claims.
• Medical malpractice and nursing home negligence.
• Product liability claims involving defective or dangerous products.
• Employment law disputes, such as wrongful termination or discrimination.
• Workplace injuries states where workers’ compensation cases are eligible or those with third-party liability.

Some funding companies, including Express Legal Funding, also consider other case types — such as wrongful death or toxic mold exposure claims — if there is a clear liability and a potential monetary recovery. If you are unsure whether your case qualifies, it’s best to apply or speak with our team for a quick evaluation.

Key Takeaways

• No credit check is required for pre-settlement funding.
• No impact on credit score from applying or receiving funds.
• Approval is based entirely on your case’s potential outcome.
• Fast funding — often within 24 hours of approval.
• 100% risk-free guarantee. If you lose your case, you owe nothing.

About Express Legal Funding

At Express Legal Funding, we help personal injury and accident victims access the money they need while their claims move forward. Our pre-settlement cash advances allow clients to cover essential living expenses, medical bills, and other urgent costs without taking on traditional debt.

With a clear, transparent approval process and repayment only if you win or settle, we make it easier to focus on recovery and your case — not financial stress.

Get Pre-Settlement Funding Without a Credit Check

Don’t let financial strain force you to settle for less. Because approval is based on your case — not your credit history — you can qualify even with poor or no credit. Our streamlined process can put cash in your account in as little as 24 hours after approval.

Apply online or call us today at (888) 232-9223 to find out how much funding you can qualify for. Complete your application below to get started.