Title Loans and Uber

Cash Needs of Rideshare Drivers

Getting an Uber or Lyft is as quick as opening an app and tapping a few buttons. Being a rideshare driver can come with just as much ease. When you become a rideshare driver, however, you may have certain financial concerns. 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 on the other hand 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 you can be faced with before starting as a rideshare driver. For example, you will need money for:

• Gas
• Car maintenance, including oil changes, cleaning and detailing
• A roadside emergency kit and a spare tire
• New floor mats to protect your vehicle
• 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 paying customers to enhance their chance of a great rating and tip. 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.

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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 more than you have saved up. 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 potentially get you a profit of only $6.

Why Banks are Hesitant to Lend Money to Rideshare Drivers

Did you know banks are sometimes hesitant to lend money to rideshare drivers because they are considered self-employed and higher risk for unsecured loans? A visit a rideshare financing thread in a discussion forum can confirm that banks are oftentimes less than willing to lend money to a rideshare driver that gets more than half of their income from rideshare driving. That’s because banks tend to require proper paperwork and consistent income for larger loans, and require a credit check. When you are starting a new rideshare business, you don’t always have proof of consistent income. You can have a bank statement that shows you are making money, but banks can be hesitant to lend money to someone who shows an income that is not stable and consistent over a longer period of time. 

Since making money as a Uber of Lyft driver is similar to running your own business, there is no company that guarantees your income because you are essentially your own boss. As a result, banks have less confidence that your ride sharing income can cover a loan payment.

However, if you need money, you should know you have other options than bank loans.

Ways to Borrow Money While Driving for Uber or Lyft

Nontraditional lenders are often overlooked when it comes to borrowing larger amounts of money. Many potential borrowers associate nontraditional lenders with high interest rates and frequent loan rollovers that are costly. That’s not necessarily the case with car title loans – title loans can come with competitive interest rates, and responsible loan terms, depending on the lender you choose.

Some nontraditional lenders might still have concerns when it comes to lending money to a rideshare driver for the same reasons that banks do. 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, rideshare drivers may find more flexibility when loan applications are reviewed for approval.¹

A car title loan is a secured loan that uses a car title as collateral. The secured nature of the loan can allow title lenders to be more flexible with loan approvals while still offering competitive interest rates.

How to Get a Car Title Loan

Getting a title loan is simple and only takes 3 easy steps with title loans serviced by LoanMart

1. Call us at 855-422-7412 or apply online
2. 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.^{1 3}
3. Sign your title loan contract, mail in your title and receive your funds

Of course, before you sign the loan agreement, it’s important that you thoroughly read and understand your title loan contract! Loan officers will be happy to answer any questions you may have about the terms!

Title loans serviced by LoanMart understand that using your car as your main source of income is something that has become much more common in today’s economy. If you have questions as to what kind of car you can use as collateral for a car title loan, call a loan officer or complete a brief prequalification form to see if your car qualifies.¹

When you are ready to begin the car title loan process, you need the following documents:

• Title to a qualifying vehicle in your name
• Government-issued ID (driver’s license, state ID, etc.)
• Proof of income (for rideshare drivers, bank statements or a statement of your CashApp where you receive rideshare income is the easiest way to show your income)
• Proof of address (such as a recent utility bill).

Needing money to fund your rideshare business shouldn’t hold you back from starting on your new venture. If being a rideshare driver is your full-time income, you may qualify for a title loan serviced by LoanMart if you can show that you can repay your car title loan from your Uber or Lyft income!¹

If you have any questions about the process, call 855-422-7412. When you are ready to apply, you can start the car title loan application online or over the phone!

Whether you’re getting started in a major ridesharing city like Los Angeles, Houston, or Detroit, or in a smaller town, getting a loan while making money as a rideshare driver does not have to be a hassle. Apply today for a title loan serviced by LoanMart!