Have you ever heard about loans for Lyft drivers? If you work as a Lyft driver, you probably know that getting a loan when you desperately need money is challenging. Fortunately, there are simple yet effective ways those struggles could be avoided.
Today, we’ll review various ways in which this category of people can get an installment loan fast and without any hassle.
Lyft drivers are considered independent contractors, meaning that they need to cover all operational costs on their own.
One of the essential requirements is having a vehicle, but we all know that maintaining your wheels in good condition can be really expensive.
Therefore, many drivers use cash advances for their working purposes.
The main reasons to apply for a loan are the following:
- drivers need to repair or upgrade their vehicles;
- there is a need to purchase a new car to become a Lyft driver.
Once the purpose is clear, it’s time to evaluate the potential options on the financial market.
Loans Available for Lyft Drivers
Whether a person decided to take a loan for improving an existing vehicle or buying a new one, a broad array of financial services can be helpful for drivers.
Here are the most popular options that are offered online.
This is probably the most common way to get money in this situation. These loans have many benefits, including attractive interest rates and a good loan term, but you usually need to have collateral for securing them. It is also recommended to apply with a business partner for lower rates.
This type of loan is better for small repairs when the problem can be fixed with a small amount of money. Payday loans are easier to get, as they usually come with no credit check. However, interest rates and fees are quite high which isn’t advantageous.
If a Lyft driver has a less than perfect credit history, these loans can be the only solution. Bad credit loans are characterized by the highest fees compared to others. Plus, the rules are stricter too. However, if a person makes payments without delay for several months in a row, they can expect a decrease in interest rates.
This category of loan is ideal for big projects like purchasing a new vehicle. They offer bigger sums and a fixed schedule that arrange the way to pay back. The interest rates are affordable, but you need to have a good credit history to get your application approved.
Uber vs Lyft
Lyft ridesharing company is the second-largest transportation business in the USA after Uber, so it isn’t a surprise that many Lyft drivers are in need of cheap loans.
What should be done for getting a loan in this case? Here is our easy tutorial for Lyft drivers.
- First, you should determine which type of loan you are planning to apply for
- Contact a respectable lending company and fill out a questionnaire.
- You’ll need to provide some personal and financial data. Not all loans require a credit history check.
- Depending on the information in your application form, your request will be approved or rejected.
- If everything is okay, you’ll get a confirmation, and will see the money on your bank account in a few days.
Lyft has definitely transformed the way drivers make money nowadays. Loans for Lyft drivers can be really helpful in this regard.
With more changes happening in the modern world, you can expect improvements in online loan accessibility and payment policies as well.
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Examples of Costs & APR
TwentyMilliSeconds.com is not a lender – as such, we do not have control over the APR you will be offered. We display a Representative APR only as it is based on data offered from multiple lenders. The following represents sample rates, is for informational purposes only, and may not reflect the actual APRs offered by your lender or lending partner.
Loan Amount $1,000, Interest Rate 24.00%, Loan Term 12 months, Fee 3.00%, Repayment $94.56, APR 29.82%, Total Repayments $1,134.72, Total Cost $164.72
If you borrowed $5,000 over a 48 month period and the loan had a 8% arrangement fee ($400), your monthly repayments would be $131.67, with a total pay back amount of $6320.12 which including the 8% fee paid from the loan amount, would have a total cost of $1720.12. Representative 18.23% APR.