Payday Loans for Lyft Drivers
A shorter-duration loan can help you fix or maintain your car. If you’re thinking about giving up on driving for a ride-hailing company because you can’t afford a repair, you may be able to fund those expenses with a payday loan for a Lyft driver.
Funding an Emergency Expense
Not having cash on hand is an expensive way to live. Every emergency means figuring out a way to get fast cash. When you need a payday loan to fix your Lyft car, the longer it takes you to find the money, the longer you go without making money.
You can search for online payday loans for an emergency in a few different ways:
- Enter your information into a lender database and hope for a loan connection
- Use your browser to look for local options in your area
- Ask friends and family if they know of a direct lending source that they would recommend
Each of the options above has its own benefits. Using a lender connection service can be a good way to compare rates. Finding a local option may end up getting you the money faster. And, using a payday loan direct lender can cut out the hassle of going through a middle man.
No matter which option you choose, you will likely want to find the cash as quickly as possible. Keeping their car on the road is a high priority for many Lyft drivers.
What is a Lyft Payday Loan?
A Lyft payday loan is simply a shorter-duration loan product that is used to fund a car repair. The driver usually wants to get their vehicle back on the road in a hurry so they can make money through the ride-sharing app.
Chances are your lender won’t mention the car-hailing app’s name anywhere on their website. This is because short-term loans have many purposes. People use this type of loan for everything from addressing previous financial commitments to funding a getaway.
You can still apply for money even if you don’t see your loan reason on a lender’s website. Chances are you will be able to use the loan money for car maintenance if you are approved.
Getting Started
The first step toward finding online payday loans when you need it most is connecting with a lender who is willing to work with you. Before you get started, you should make sure you meet the basic lending requirements for Lyft payday loan borrowers. You should be at least 18 years old, have a valid ID, and earn at least $800 per month.
Lenders are more likely to work with you if you have a bank account that is in good standing. Though, prior bankruptcy, charge-offs, and bad credit history may not hold you back from receiving a loan.
Applying for a Payday Loan for Lyft Drivers
Once you find a lender, they may ask you to apply. Submitting an application for a shorter-duration loan is much easier than applying for funding through a bank. It should only take you a few minutes, and you should have an answer soon after that.
Understanding Credit Checks
Lyft drivers with bad credit who need cash may try to find a no credit check payday loan. Unfortunately, this type of funding is not available. All lenders perform at least a cursory credit check, lightly digging into the applicant’s background to validate their identity and check their credit score. While a low score may not disqualify a customer, it will likely result in higher costs for the loan.
One way to lessen the impact of a credit check is to use a lender who accepts collateral. A secured loan often has lower interest rates, as the lender views the lending relationship as less risky because they can sell the collateral in case of default.
Another way to get around bad credit is to apply for a Lyft payday loan with a co-signer. Using a co-signer will bypass your credit-worthiness, leaving someone else’s credit score as the deciding factor. The co-signer takes on full responsibility for the loan. If you aren’t able to pay back the money, the lender will expect the co-signer to make the payments or risk receiving the same punishments as you.
How to Use the Money
After the money arrives in your bank account, it is yours to use as you see fit. That means you can use the money to repair your car and get back on the road driving for Lyft.
If you do not see the money in your account on the day it is supposed to arrive, then contact the lender and make sure they have your correct banking information.
Paying Back the Loan
Most lenders ask for your bank account number during the application process. They want this information for a few reasons:
- To validate your identity
- To add another check to their risk-assessment model (if you have a bank account in good standing, you may at less risk to default on the loan)
- To have somewhere to transfer your funds, and then when the loan is due, to automatically withdraw your payment and fees
Payday loans are usually borrowed against the customer’s next paycheck. The lender expects you to pay back the loan on your next pay date. Some will take the money out of your account on that day. If you do not have the money in your account, you may be charged a Non-Sufficient Funds (NSF) fee by the lender (usually around $25). This fee will be added to what you already owe, maybe along with other fees as well.
What Happens in Case of Default?
Those who cannot pay back their loan on time will need to let the lender know as soon as possible. Most lenders will be willing to work with the borrower to fix the situation in a way that’s easiest for both parties.
If the lender is unable to get in contact with you after you miss a due date, they may pass your debt on to a collection agency. This makes everything more difficult. The collection agency has many tools at their disposal to pressure you into paying them, like wage garnishment. It is always better to work with the lender and try to avoid having the debt go to a collection agency.
Regular Expenses for Lyft Drivers
Repairing your car is only one reason for why you might need a payday loan. Here are some of the most popular reasons Lyft drivers look for fast cash in a hurry:
- Regular maintenance – full-time Lyft drivers travel 1,000 miles a week. That translates to a lot of oil changes (every 5,000 miles), new tires (every 50,000 miles), new brake pads (every 50,000 miles), and other expensive reasons to bring the car to the shop. It’s no wonder that Lyft drivers need payday loans.
- Gas – you need fuel to drive, and gas prices keep going up.
- Insurance – don’t be surprised if your insurance rates go up. Some states require ride-hail drivers to carry commercial insurance.
- Tolls and permit fees – passengers often want drivers to take routes that cost extra, which translates to more fees for you.
- Smartphone upgrades – Lyft requires you to have an up-to-date phone that can run the latest version of their software. New phones are around $600, and then you need to factor in the cell phone plan.
For the reasons listed above, Lyft drivers spend thousands of dollars a year to maintain their car even before anything breaks. A shorter-duration loan can make it easier to pay off some of these expenses.
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