Payday Loans for Uber drivers: What to Know
Being an Uber driver is a great idea when you are looking to make some extra cash on the side or when you enjoy driving full-time. You can set your own hours and work when and where you want. However, one of the main goals of an Uber driver is to keep their vehicle in tip-top shape in order to keep their job. If your car breaks down, it is important to have a backup plan concerning how you will get it fixed. Other emergency expenses often come up in the life of an Uber driver, as well.
Why a Loan May Be Necessary
Everyone needs a loan now and then, and Uber drivers are no exception. Ideally, you will be making a good deal of money driving customers to and from their destinations and will be able to set aside an emergency fund. However, this won’t always be the case. Unexpected emergencies can happen to anyone, and you may not have enough funds set aside to take care of one when it occurs.
When this happens, payday loans for Uber drivers can come in handy. A payday loan can cover emergency situations as soon as they happen. One of the biggest expenses for an Uber driver is when the vehicle breaks down. Of course you will want to get it back on the road as quickly as possible; after all, your car is how you make your money. A payday loan may cover the tow you need if you cannot afford a tow truck to get your car to the shop, or it could cover the necessary repairs you may end up needing.
Payday loans are also used by some to help cover other monetary emergencies. Maybe you need gas for your vehicle in order to drive that day. You could need money for tolls and for lunch. Maybe you need to upgrade a few things on your vehicle for a safer drive, such as new brakes or tires. You may even wish to add a few luxury items to the inside of your car to help you get the best ratings, such as phone car chargers, snacks, and drinks. When you cannot afford to pay for them up front, a loan can help.
Why Payday Loans are Helpful
Now that you know a payday loan can cover your emergency issues, it is time to start the process of actually receiving the loan. Luckily, payday loans are one of the easiest to apply for. These kinds of loans are sometimes looked down on by other lending establishments, such as banks and credit unions. However, anyone who has used a payday lender in the past can tell you how helpful they are when you are in a pinch.
A traditional bank loan or a loan from a local credit union isn’t always the best idea when you need cash fast. These organizations can take days to approve the loan application after you apply. If the emergency situation revolves around your vehicle, you will obviously want the cash as soon as possible. Banks may also require you to come in and talk to a representative to apply. Many financial organizations will force you to jump through hoop after hoop for a loan.
Payday loans are much different. When you are in a pinch and can’t wait up to a week for your money, a payday loan will be the most useful to you.
What You Will Need to Get Started
You can apply for a payday loan online at any time of the day or night. This is perfect for Uber drivers who may be working late at night or super early in the morning. There are no “business hours” that you have to adhere to when you are ready to apply. You only need to log on with the company you want to work with to send in the application.
Payday loans for Uber drivers are easy to request as you will only need to supply a relatively small amount of personal information. To begin, you will be asked for your name, address, and contact information. The company will want to know your employment history; for example, where you work, how much you make, and when you get paid. This information will be used to determine how much of a loan you will receive. Some, but not all, may require you to fax in some documentation.
Finally, the company will want to know your banking information. This will include your checking or savings account number, routing number, and the name of the bank you use. They ask for this information as it is how you will receive your cash upon approval. Your account must be in good standing in order to receive a loan.
Credit Checks Still Happen
Another popular reason for the use of payday loans is the fact that those with bad credit are still someones accepted for funding. With so many people dealing with less than perfect credit scores in today’s world, payday loans have become a real necessity. However, you should know that lenders will still need to run your credit. Fortunately, their risk-assessment model may look at other attributes, as well. The company may consider your employment history and partially base the amount you receive off of your last paycheck and your future earnings.
This means that if you have a very low credit score, you might still be eligible for the loan you need. If you have a repossession or bankruptcy on your report, it may make it harder to find money. For many Uber drivers, this is a major convenience.
The Application Process
As we have stated above, you can apply for the loan at any time of the day or night. Simply fill out the application you are given and provide all the necessary documentation. A legitimate payday loan company will ensure that the whole process is encrypted and secure.
Once the company has all of the necessary information, they will begin the process of approving or denying you for the loan. You will be given an answer within minutes in most cases. From there, if you were approved, you may receive the money in as little as one business day.
I Received the Loan. What Now?
Once you have been approved for the loan, you simply need to wait for the bank to send it to your personal account via direct deposit. This is one of the reasons they need to have your current and correct banking account information on file. It is important to double-check that you provided the right information during the application process so that there is no delay in receiving your loan.
You can then use the money. Withdraw it from your local ATM, purchase what you need online with your debit card, or use your debit card or a check to take care of your emergency needs at the appropriate establishment.
Paying the Loan Back
During the application process, the company will provide you with details of the date the loan will be due back. Typically, this will be on your next payday. When that day comes, the bank that issued the loan will automatically debit your account the amount of the loan, plus all applicable fees. These fees will also be disclosed during the application process.
If you believe you may not have the funds to repay the loan on the initial due date, get in touch with the payday loan company. They may offer you the choice of “rolling over” your loan. If they do, you will typically be required to pay the finance charges of the initial loan on the original due date. Then, you will be given an extension. Just remember, additional fees will usually be applied to the loan. Please note that some states do not allow rollovers.
Final Thoughts
Payday loans for Uber drivers can be very helpful when emergencies happen. They offer an easy application process, are quick to hit your account, and do not require a credit check. However, be careful that you do not fall into a circle of debt. Pay close attention to any and all fees associated with the loan, and never take out more than you need at one time. Responsible borrowing is the key to using a payday loan to get out of an emergency situation when you are an Uber driver.
You may be interested in these blogs, too:
