Can Uber and Lyft Drivers Get a Cash Advance?

Did you know that Uber held 76% of the US rideshare market, while Lyft conquered the remaining 24%, according to the latest data published at Bloomberg Second Measure? However, it is still difficult for Uber and Lyft drivers to manage their finances effectively due to irregular income and lack of employment benefits.

An instant cash advance could be a quick money solution to bridge financial gaps. With our comprehensive guide, you will know how to get a cash advance as a rideshare driver, the requirements, benefits, drawbacks, and the best alternatives.

Can rideshare drivers qualify for cash advances?

Short answer: Yes. Uber and Lyft drivers can get cash advances. Normally, rideshare drivers can’t borrow money from regular banks since they have choppy paychecks. However, some apps, such as GigsCheck, Giggle Finance, GigsHelp, and Fundo, provide flexible and fast cash advances for Lyft and Uber drivers.

Generally, the application process is so simple, and you have to deposit a few of the documents as given below:

• Your income proof: All these specialized lending platforms need from you is proof of your earnings, such as a bank statement or a three-month income report from Uber or Lyft platforms.
• Residence proof: You can prove your residence by providing your utility bills, lease agreement, or any other document that reflects your address.
• Proof of identification: Documents like a driver’s license, passport, or any other government ID can be uploaded.

Lenders evaluate your eligibility primarily based on your gig income after you successfully submit your application and the required documents. These cash advance apps for gig workers focus more on the borrower’s creditworthiness rather than on credit score.

It means that even if Lyft or Uber drivers have bad credit, they can still access cash advances. Your approval decision is based on your earnings from rideshare.

Is credit score important?

In most cases, having a good credit score is not a primary factor for lenders while making decisions for cash advance approval. However, rideshare drivers with high credit scores leverage cash advances at lower fees or more flexible repayment terms. Drivers with low or bad credit scores may face to pay higher costs.

What are the terms of cash advance for rideshare drivers?

If your cash advance is approved, you’ll receive an agreement mentioning your cash advance’s terms. Every lender has own eligibility and terms, but they must be reviewed carefully before accepting them. Basic and standard terms are:

1. Fees: It is important and expressed as a flat fee or percentage of the cash advance you borrow; these cover overall borrowing costs.
2. Repayment terms: Here you get the repayment details of your cash advance, typically automatic deduction from your Uber or Lyft earnings.
3. Additional cost: Some lenders may charge processing or origination fees, so read them carefully.

Is cash advance a good idea for rideshare drivers (Uber or Lyft)?

Consider the following advantages and disadvantages of cash advance for Uber and Lyft drivers before making final decision:

What are rideshare cash advance used for?

In most cases, lenders will let rideshare drivers use their cash advance for any worthwhile purpose, and this includes:

• Buying a new car/bike
• Home improvements
• Cover financial needs until next payment
• Paying for a wedding
• Consolidating debt
• Paying for a holiday
• Buying furniture

There are many other reasons you won’t be able to get a cash advance for, it includes:

• Gambling
• A deposit on a property
• Share trading or investing

5 best cash advance apps for Uber and Lyft drivers

1. GigsCheck:com offers an instant cash advance of up to $2,500 for rideshare and delivery drivers. The app has announced installment loans for gig workers, allowing them to borrow up to $5,000 for extended periods.
2. Giggle Finance: Giggle Finance is a unique platform dedicated to gig workers and providing transparent financing to drivers working for rideshare companies like Uber and Lyft. You don’t need a credit score as a requirement to apply for a cash advance.
3. Fundo: Fundo is a platform that offers cash advances to gig workers, small businesses, freelancers, and self-employed up to $10,000. If you are eligible, you get funds as soon as the same day of application (fees applicable).
4. Ualett: Like Giggle Finance, Ualett is known as a cash advance app for rideshare and delivery drivers. Rideshare drivers apply and get funding within business hours after getting approval.
5. GigsHelp: Platforms like GigsHelp provide dedicated cash advances for rideshare and delivery drivers at low rates and flexible repayment terms. You can borrow up to $5,000, even with a bad credit score.

Learn More: Best Cash Advance Apps for Rideshare Drivers

Alternatives to cash advance for Uber and Lyft drivers

• Borrow from friends or family: Borrowing money from your friends or family isn’t easy, but it can be the best and most low-cost way to avoid cash advances. However, this method works best if you’re responsible for paying back what you owe on the promised time.
• 0% APR credit cards: Typically, credit cards are much easier to qualify, and you may get a credit limit similar to your cash advance. However, interest rates are higher, so it is best to apply for 0% APR credit cards.
• Build emergency saving funds: If you have not built an emergency saving fund yet, it’s time to start it. Even a small saving of $10-$20 from your rideshare earnings can create a big safety net that will later help you, especially during a cash shortage.
• Create an adequate budget: Smart money management is the key to long-term financial success. Create a practical and realistic budget that helps to avoid future financial emergencies.