What To Know About Getting A Lyft Driver Loan
Unbeknownst to most, getting a Lyft driver loan isn't as tricky as you might think. There are so many types available, allowing you to access the level of funding you need to fund your emergency.
Since you have loads to learn about getting loans for Lyft drivers, we will jump right into all the details.
Why Do You Need A Lyft Driver Loan?
Typically, a Lyft driver loan is used to fund emergencies. However, there are plenty of other reasons to get loans as a self-employed individual. Some of the most common reasons that Lyft drivers like you require loans are as follows:
1. Medical Bills
As anybody in the United States of America knows, medical bills can be massively expensive. But luckily, you aren't alone. If a health emergency strikes, you can get a loan to fund the costs.
It's best to check with your health insurance before setting your borrowing decision in stone, though. Some policies will cover specific procedures, treatments, and medications. So, don't fall into the trap of borrowing unnecessarily.
Plus, only take out the amount you need. While it might feel nice to have excess money left over after paying your medical bills, you'll only end up repaying it.
2. Maintain Or Update Your Vehicle
Cars are essential to your business, and they need maintenance every now and then, even if you don't use them every day.
As a Lyft driver, you likely spend many hours per week driving around. This translates to excessive wear and tear for your vehicle. Therefore, you will need to keep on top of maintenance tune-ups and services to keep it running smoothly.
Furthermore, you must meet certain requirements to continue driving with Lyft.
Firstly, your car must be no more than ten years of age. Secondly, the interior must be clean with zero cosmetic tampering or visible imperfections. And thirdly, you have to meet Delaware's regulatory requirements for commercial vehicles.
To comply with the above, you may need to spend money updating your vehicle, which a Lyft driver loan can certainly help you with.
3. Buy A New Vehicle
At some point, tuning and upgrading your car won't be enough. In this case, buying a new car is the best (potentially, the only) option.
As we've mentioned, you need to meet Lyft's standards, so the car you purchase makes a huge difference to your working life. Therefore, taking out a loan to fund a brand-new car may make the most sense to ensure your self-employed driver status isn't jeopardized.
Types Of Loans For Lyft Drivers
Knowing why you need a Lyft driver loan is one thing, but understanding which type is best for your situation is a separate can of worms.
This section will look at the top five types of loans you can acquire as a Lyft worker.
1. Secured Credit Cards
This is one of the easiest "loans" to acquire. They tend to come with attractive rates because you must supply collateral to gain approval, thus lowering the risk to the lender.
If you want to benefit from even lower rates, apply with a guarantor or co-signer. They take the burden of the loan if you default, doubling the lender's chances of getting their money back, and awarding you more attractive interest percentages.
2. Bad Credit Card Loans
For those of you with poor credit scores who can't gain acceptance for collateralized loans, you can choose bad credit loans instead. They tend to come with higher fees and have strict terms to abide by, but they're often useful when stuck in a financial rut.
3. Personal Loans
Personal loans are awarded based on your permanent residency. If you're a visa holder without a good credit score, this might be the best option.
4. SBA Loans
Under the CARES Act, Lyft drivers like you qualify as self-employed. Therefore, you can gain access to loans offered by the Small Business Administration (SBA). They provide a variety of financing perfect for various situations.
5. Signature Installment Loans
Finally, you can get a Delaware installment loan from us at Delaware Title Loans, Inc.! We don't have hard-to-meet criteria, but we will check your credit before approving your loan application.
Simply bring your driver's license, pay stub, and checking account statement to your nearest storefront and follow the steps below to get one:
- Fill out the online signature installment loan inquiry form found here.
- Wait for one of our experts to give you a call to discuss the process, answer questions, and ensure you have the required items.
- Head to your local Delaware Title Loans, Inc. storefront with the necessary documents.
- Wait while our representative evaluates your information.
- Receive the money on the same or the next day.
Submit Your Delaware Installment Loan Enquiry Now!
Get a Lyft driver loan from us to fund emergencies in under 24 hours. Submit your request today!
Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.