Payday Loans for Lyft Drivers
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If you are a Lyft driver, you probably know that it can be quite difficult to get a loan when you are desperate for money. The problem is that many banks are reluctant to lend money to the drivers from ridesharing companies as they are technically self-employed and have unstable income. But there is always a way out, and our LoanSolution team is happy to help you get quick money without much effort. So today, we’ll tell you which loans are available to Lyft drivers and provide you with a simple guide on how to apply for a loan.
Reasons a Lyft Driver Might Need a Loan
Lyft drivers are considered independent contractors. That is, you assume all the costs associated with your job. So, what expenses can you expect? Let’s consider the most widespread reasons why drivers are seeking Lyft loans.
Car Servicing and Repair
Even the most qualitative and expensive car needs regular maintenance and periodic prevention of various kinds of malfunctions. This helps to identify a problem timely, before it becomes global and entails greater financial costs or leads to an accident. All the more so as Lyft drivers work many hours in a row, so the car wears out even faster. And regular vehicle inspection prevents all possible breakdowns in the initial stages.
In addition, no one is immune from a sudden car break when the repair can cost a pretty penny. What’s more, each state has its own requirements for the appearance of the car and its interior, so you need money to keep your vehicle clean and presentable.
Purchase of a New Car
Each car has its expiration date when the upgrade is no longer possible. In this case, buying a new vehicle is the only way out if you want to keep making money driving. What’s more, Lyft requires the car to be no older than 10 years. So you will need to buy either a brand new car or one that has been used for less than 10 years. Most drivers opt for purchasing a new vehicle, thus saving on upgrades. Needless to say, they cannot do without car loans for Lyft drivers in such a situation.
Loans Available for Lyft Drivers
If you are considering loans to repair or upgrade your car or buy a new vehicle, you should know what options are available to you. So consider the best types of loans for Lyft drivers.
Payday Loans
A payday loan is a short-term loan that will be good for those drivers who do not need large sums of money. How does it work? You borrow a small amount (typically $250 – $500) and pay it back the day or two after your payday. What’s more, payday loans for Lyft drivers do not have strict requirements; lenders often do not even check the credit history of their clients. The only downside is that this type of credit money often comes with high-interest rates. But you can resort to loan applications that do not charge you any fees.
Cash Advance
Cash advance is a quick, short-term loan provided by a credit card issuer. That is, you simply use the money from your credit balance. It may even be said that you “buy” cash with your bank card. Of course, the service is not free and often comes with fairly large fees and interest rates. At the same time, you will not be able to take a large cash advance for Lyft drivers – its amount usually reaches only a few hundred dollars. But it’s still a good way to get some extra money in case of an emergency. You can withdraw cash advance in the following ways:
- At an ATM
- In your bank
- Using convenience check
» COMPARE: Loans For Uber Drivers
Bad Credit Loans
You can take out a Lyft driver loan even if your credit history is not so good or if you have no credit history at all. Bad credit loans come with higher interest rates and stricter limits and requirements. Lenders pursue such measures to make sure you get their money back. At the same time, 90% of lenders decide to give you a loan or not based on the FICO scoring model, which ranges from 300 to 850. You can get a bad credit loan if your FICO score ranges:
- From 300 to 579 – Poor credit
- From 580 to 669 – Fair credit
How to Get a Loan as a Lyft Driver
The process of obtaining a loan for Lyft drivers is not complicated at all and takes from 1 to 3 business days, depending on the bank and the type of loan you want to receive. So how do you get some extra cash? First of all, decide on the type of loan you need – bad credit loan, cash advance, or payday loan. Next, contact a reliable banking (or non-banking) financial institution and apply for a loan by filling out a special form. You will be asked to provide your personal data and information about your income and work. After that, you just need to wait for the loan to be approved. You will get a confirmation, and the funds will be credited to your account.
3 Steps to Apply for a Lyft Driver Loan
If you decide to apply for a Lyft driver loan, you should know how to do it properly to avoid possible problems and difficulties. Remember these 3 simple steps, and you will manage to deal with them quickly and easily.
Find Out if You Are Eligible for a Loan
Not all people are eligible for loans. You must meet certain criteria in order for a lender to give you money. So, learn about the minimum credit score, income or deposit threshold, minimum length of credit history (if the lender checks it), and other important details to determine if your financial profile is eligible for a loan.
Check Loan Terms
By checking the terms of a loan for a Lyft driver, you will identify whether you can pay it off and whether it is worth taking the loan at all. Therefore, pay attention to the following details:
- Loan duration
- Monthly payment
- Fees and interest rate
- Type of interest: fixed or variable
- Type of a loan: unsecured or secured
- Penalties
Apply for the Loan
After learning everything about a particular loan, collect all the documents you need and head to the preferred banking facility. Or you can apply for a loan online if you choose a non-banking financial institution. The main thing is to provide the best possible application. This will increase your chances of getting approved for a loan.
Conclusion
Lyft driving is a good means of income for both US residents and immigrants. But novice riders often find it problematic to get a vehicle, even if not a new one. Experienced Lyft drivers may need quick cash as well – to upgrade their car or get it fixed. In any case, Lyft driver loans are a good way to cover all expenses and therefore increase your income significantly.
Carl Packman is a researcher, broadcaster, and writer. He wrote several books, including Loan Sharks: The Rise and Rise of Payday Lending, which comments on personal debt and finance issues. Also, Packman wrote Payday Lending – Global Growth of the High-Cost Credit Market, which reviews the growth of the high-cost credit industry from the early 1990s. He boasts a BA in Film and Philosophy from the London Metropolitan University. Carl Packman is a valuable contributor on our platform, sharing great insights into lending. He has helped improve our website by doing his authoritative preview of different topics.
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Does Lyft Do Cash Advances?
Yes. Lyft offers cash advances that can get used for various purposes. Among them are investing in a gig, taking care of home expenses, etc. The funding is meant for independent drivers to cushion their bank accounts and establish better financial styles. The requirements include a driving license and proof of earning for four consecutive weeks. -
Does Lyft Offer Personal Loans?
Yes. Customers can apply for personal loans based on their permanent residency status. The funding is suitable for immigrants and visa holders whose credit scores are low or who cannot access other forms of financing due to various reasons. To borrow, one has to fill out a form. If the specified requirements get fulfilled, the customer receives a confirmation, and the money gets credited to his bank account. -
How Much Can a Lyft Driver Get from a Payday Loan?
Payday loans for Lyft drivers are generally small. Borrowers usually get up to 1,000 dollars and must repay within one month. One must pay the borrowed amount, including the interest and fees, when repaying. The charges can be as high as 30% or 30 dollars for every 100 dollars borrowed.
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