Structured settlement of credit type of loan that uses a structured settlement as collateral for the loan. This type of arrangement allows a person with a structured settlement to gain access to a larger lump sum of money when you need it, and then pay back the loan with payments received from structured settlement in the future.
The amount of credit is often based on a percentage of structured settlement is usually between 70% and 90%. Because there is a guaranteed source of money that can be used to repay the loan, the lender takes much less risk when approving loans. As such, lenders are often likely to offer competitive interest rates under the terms of the loan.
Structured settlement loans are beneficial for borrowers as well; using their structured settlement as collateral, they should not risk their assets to worry about how to repay the loan, or worry about employment and credit history or background checks.
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