Many personal injury victims hesitate to seek medical funding because they worry it might affect their credit score. The truth is that most medical lien and lawsuit funding services do not impact your credit report.
These financial tools exist to help injury victims access medical care and financial relief without adding credit stress or debt.
This article explains how medical funding works, why it differs from traditional loans, and how plaintiffs can use it safely without hurting their credit score.
Medical funding helps personal injury victims pay for treatment and recovery costs while their legal case is ongoing. When someone is injured in an accident, medical bills can pile up quickly. If the victim is waiting for a settlement, they may not have the funds to pay for care.
Medical funding, also known as pre-settlement funding, provides immediate financial support. It covers hospital bills, surgery, chiropractic care, or physical therapy.
The key point is that this funding is non-recourse, meaning repayment happens only if the case is won. If the case is lost, the injured party owes nothing.
Providers like Fund Capital America offer medical lien funding that connects injury victims with doctors who accept liens. This process ensures access to medical care even when the victim cannot afford upfront costs.
Using medical funding services does not affect your credit score. Unlike traditional loans, medical or lawsuit funding does not require a credit check for approval. Providers evaluate your case strength instead of your financial history.
For example, Fund Capital America assesses the likelihood of your case’s success rather than reviewing your credit report. Since there is no credit inquiry, your credit score remains unchanged.
Medical funding is considered non-recourse, which means you do not make monthly payments or risk default. As a result, no late payments or missed obligations appear on your credit report. This makes medical funding a safe and low-risk option for plaintiffs concerned about protecting their credit.
Traditional loans, such as credit cards or bank loans, can impact your credit score. When you apply for these, lenders perform hard inquiries, which can lower your score temporarily. You are also required to make monthly payments with interest, even if you are injured and unable to work.
In contrast, medical funding focuses solely on helping you recover physically and financially. It does not involve a credit check or regular payments. You repay only if your case settles successfully.
For example, a car accident victim who needs surgery but has no insurance can apply for medical lien funding. The provider pays the medical bills upfront. Once the case settles, the payment is taken from the settlement proceeds. If the case is unsuccessful, the victim owes nothing. This structure protects your credit while allowing you to continue treatment.
Medical funding provides several benefits for people recovering from injuries. These advantages make it an effective financial solution during personal injury claims.
Key benefits include:
For instance, a personal injury victim in Los Angeles can use medical lien funding to pay for chiropractic care and physical therapy while waiting for their insurance or settlement. This helps maintain consistent recovery without financial strain.
Data from personal injury cases in California shows that many victims use medical lien financing to access care they would otherwise postpone due to cost. This type of funding ensures that medical treatment continues uninterrupted, supporting better recovery outcomes.
Reputable funding providers protect plaintiffs from unnecessary financial stress. Fund Capital America, for example, offers non-recourse lawsuit funding in California, meaning plaintiffs only repay if they win or settle their case.
These services provide peace of mind because there are no hidden fees or compounding interest charges. Unlike credit cards or payday loans, you do not risk falling into debt. Medical funding allows plaintiffs to focus on recovery and legal proceedings without worrying about late payments or damaged credit.
By preventing unpaid medical bills from going to collections, medical lien funding indirectly safeguards your credit score as well. This financial stability can be crucial during long legal battles where settlements may take months or even years.
Before applying for medical funding, it is essential to make informed decisions. Following a few smart steps can help you secure reliable and transparent support.
Here are some tips:
These precautions help you maximize the benefits of medical funding while avoiding financial risks.
Medical funding services are a reliable way to manage treatment costs without affecting your credit score. Because medical lien funding and lawsuit funding are non-recourse, they provide a safety net that traditional loans cannot offer.
For personal injury victims, this type of funding is a lifeline that ensures timely medical care and financial stability throughout the case.
By choosing a trusted provider like Fund Capital America, plaintiffs can focus on healing and winning their case rather than worrying about their credit report or financial strain.
Since 2006, Fund Capital America (FCA) has been a trusted leader in pre-settlement funding, providing cash advance loans to plaintiffs in personal injury and accident cases. Over the years, FCA has proudly served thousands of law firms and tens of thousands of clients, helping them navigate the financial challenges of litigation. While our core service is pre-settlement funding, we also offer a comprehensive range of services to support law firms and their clients from the beginning of the case to the final settlement check distribution.
In addition to pre-settlement funding, FCA provides a broad array of services designed to alleviate the financial and administrative burdens on injury victims, law firms, and medical professionals. Our services include:
Here's how it works:
Fill out our application form: It takes just 5 minutes to provide the necessary details about your case.
Get prequalified: Our team will review your application and get back to you swiftly, often within hours.
Need assistance? Call us at the number provided for immediate support from our knowledgeable staff.
Don't let financial stress prevent you from focusing on your recovery. Apply now to secure your lawsuit cash advance!