Having a monetary crisis knows no limits or lifestyles. Financial emergencies happen whether you are a doctor, lawyer, babysitter or a rideshare driver. Your can have a sudden medical bill, urgent car repair, or a sudden expense that amounts to over a couple hundred dollars. A vehicle is the most important part of a rideshare driver’s employment. You can’t take public transportation to get to work as a rideshare driver. So how do you get money quickly, while still being able to get around?
Ridesharing Money Lending Options
Many people don’t realize that being a rideshare driver is like owning your own business. You are your own boss, making your own hours, working for your money with your car.
When you start driving for ridesharing businesses such as Uber and Lyft, you have a few specific options for “payday” or payment upfront loans. Ridesharing businesses offer advances for drivers but at a cost. While their services offer a sort of $1000 advance, you must give as much as 50% of your pay directly to the lender. Some of the lenders also require you to pay a fee while you have a balance. While they claim not to have interest fees, there is still a daily balance fee. They also offer shorter terms, as short at 15 weeks for you to repay the balance. If you know how rideshare businesses payout, you know that they can take anywhere from 20-30% of each ride as their own service fee, then you would have 30-50% go back to their payday lender, leaving you with less than 30% of each trip as profit. A rideshare trip of $20 would get you a profit of only $6.
Did you know banks are sometimes hesitant to lend money to rideshare drivers because they are considered self-employed and a risk to lend for unsecured income? A visit to any rideshare forum can confirm that banks are less than willing to lend money to a rideshare driver that gets more than half of their income from rideshare driving. Rideshare companies have come up with alternatives for their drivers; however, rideshare lenders are still a new business, so why would you trust your financial needs with newer lenders, when you can take the less stressful route and use a nontraditional lender? It’s the peace of mind you can find when needing emergency funding.
Nontraditional Lenders as Another Option
Nontraditional lenders might have some concerns when it comes to lending money to a rideshare driver for the same reasons as banks. The inability to show job security can be a determining factor for nontraditional lenders. However, when it comes to borrowing from a title loan lender, there can be better options. A car title loan is a secured loan that uses a car title as collateral. When LoanMart makes their decision to fund a loan, they take into consideration:
- The condition of the vehicle
- The state where you live
- Your ability to repay the car title loan.
Nontraditional lenders are more transparent and have been around much longer than the alternatives rideshare businesses offer. LoanMart has been in business since 2002 and has serviced over 150,000 customers2. We offer comfortable repayment terms. We offer loan amounts as large as $50,0001, depending on the state you live in and their lending laws. Our repayment terms start at 12 months and go up to 48 months, depending on your needs. We don’t want you to feel desperate to repay your car title loan by putting such limitation on lending, and we want you to chose how you make your repayments, to ensure successful repayment. We have several repayment options. You can make payments:
- By Mail
- By calling 1-877-787-4923
- Using the LoanMart Mobile App
- Or visiting us at a participating store
Something else to consider when you are getting a car title loan is being honest about where your income is coming from. By letting us know that you are a rideshare driver, we can accommodate your loan needs better. By being able to repay your car title loans on your terms, you can find comfort in borrowing money for your financial needs. You should also make your car insurance provider aware of both conditions. By having the proper insurance coverage for being a rideshare driver, you should be fully covered in case you are in a car accident and can’t use your car as collateral, anymore.
How Does a Car Title Loan Work?
Car title loans use your car title as collateral to secure a loan of a large dollar amount. When you apply, we will ask for a few documents and can pre-approve your car title loan as quickly as a few minutes, and you can get paid as soon as 24 hours3.
Getting a car title loan with LoanMart is very simple. To get a car title loan, you need:
- A car title to a qualifying car in your name
- A government-issued ID (driver’s license, state ID, etc.)
- Proof of income (with a rideshare business, a bank account statement might be best, we need this to show your ability to repay the loan)
- Proof of your current residence
LoanMart has many options for you to apply for a car title loan. You can give LoanMart a call at 1-877-787-4923, visit us at any of our participating stores, apply online on the LoanMart Website or use your mobile device to apply with LoanMart.