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Driving for Uber/Lyft
Getting an Uber or Lyft is as quick as opening an app and tapping a few buttons. Being a rideshare driver comes with just as much ease. When you become a rideshare driver, there are certain concerns you may have ahead of time. What if you get into an accident and needs funds for repairs? Or what if you need money before rideshare business picks up? Being able to have financial security when starting a new job is important. Waiting to get paid can be stressful. So how do you get money when you just started a new job?
Up-front Expenses as a Rideshare Driver
There are many expenses that come with starting as a rideshare driver. You will need money for
- Car maintenance
- An oil change
- A roadside emergency kit and a spare tire
- A proper car cleaning and detailing
- New floor mats to protect your vehicle
- An air freshener or cleaning supplies
- Better insurance and possible roadside assistance
- Best phone plan that requires you to be connected to the internet, so you can find your fares
- Not to mention, being on the road means you might have to bring a lunch or stop somewhere to eat, since most cars don’t come with a compartment to keep your food hot or cold
Some drivers even offer water to their fares/customers. All these expenses go towards getting a driver a better rating and being a better driver. The better the rating the driver gets, the more likely they will get chosen to be a driver. So how does a new driver get money before they can make money in case of a financial emergency? Starting as a driver is just like starting a new job, unless they have a savings in place, and even if they do have a savings, sometimes it’s not enough to cover unexpected expenses.
Can You Drive a Car with Uber/Lyft While there is a Title Loan On the Car?
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.
Why Banks are Hesitant to Lend Rideshare Driver’s Money
Banks seem to be having a hard time lending to rideshare drivers. Banks require proper paperwork for bigger ticket loans, more than a couple hundred dollars, and require a credit check. When you are starting a new rideshare business, you don’t always have proof of income. You can have a bank statement that shows you are making money, but banks are so hesitant to lend money to someone who shows an income that is not stable. You know that your income will be stable, but a rideshare business is like having a crafting business, or working as a freelancer. There is no company that guarantees your employment because you are your own boss. It’s up to you and your will to make money that drive you. Banks have no guarantee that your drive can cover their payments are almost unwilling to lend money to rideshare drivers. However, if you need money, you should know you have other options.
Easy Ways to Borrow Money without a Bank
Nontraditional lenders are often overlooked when it comes to borrowing larger amounts of money. Most people associate nontraditional lenders as predators with high interest rates and rollover schemes. That’s not the case with a car title loan.
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. With a secured loan, we can offer competitive interest rates since we have collateral for your loan. By lending secured loans, we can also offer larger payouts. Getting a car title loan takes 3 easy steps and we have many tools to make the car title loan process quick.
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.
How to Get a Car Title Loan
Getting a title loan is simple and only takes 3 easy steps
- You give us a call at 855-422-7412, apply online on website and even use your mobile device using our Mobile App
- You can get pre-approved for your loan in as little as five minutes and get paid on your title loan in as little as 24 hours.3
- You will be paid with either a check, an electronic money transfer, or pick up your money at a participating money transfer location near you.
We understand that using your car as your main source of income is something that has become much more substantial. If you have questions as to what kind of car you can use as collateral for a car title loan, we have created a guide to answer any questions regarding this issue.
When you are ready to begin the car title loan process, you need the following documents:
- Car title to a qualifying car in your name
- Government-issued ID (driver’s license, state ID, etc.)
- Proof of income (in this case, a bank statement or statement showing your ability to repay the loan)
- Proof of residence (such as a recent utility bill).
Getting money to fund your rideshare business shouldn’t hold you back from starting on your new venture. We want you to succeed in your new business and get a stronger foothold in your startup. If being a rideshare driver is your full-time income, just show us that you can repay your car title loan, and we will work with you to get you paid1.
If you have any questions about the process, give a call at 855-422-7412 or use your mobile device to apply with our mobile application. When you are ready to apply, then you can begin the car title loan process whenever you are ready and get cash when you need it.