Can Uber Drivers Get Loans? 

Yes, Uber drivers can get loans—and that includes food delivery drivers too, like those working with Uber Eats, DoorDash, or Grubhub. Even though you’re considered self-employed, there are still plenty of lenders who’ll work with you. They may just ask for things like bank statements, tax returns, or screenshots of your weekly earnings. In this article, we’ll walk you through the financing options available and what you need to know before applying.

Loan Options for Rideshare Drivers

Rideshare and delivery drivers may have access to several different kinds of loan options they can choose from, keep reading to learn more about loans for Uber drivers:

Personal Loans

Personal loans are popular loan choices for borrowers who need quick funds but want a steady repayment schedule. These loans are extremely flexible and versatile, one reason why many borrowers lean towards them. You can find them on your own or seek the help of a financial platform that compares them for you. CreditNinja recommends personal loans over options like payday or cash advance options. 

Auto Loans

Car loans are specifically designed to help borrowers finance the cost of purchasing a used or new vehicle. A rideshare driver’s vehicle can definitely take lots of wear and tear, and so, they may find the need to purchase a new vehicle sooner and more often than the average person. Before choosing an auto loan CreditNinja recommends paying close attention to the loan agreement and the down payment. You should also know that personal loans and other installment loans can be used to finance a vehicle, you aren’t limited to auto loans. 

Title Loans

Title loans use the equity of your vehicle to make funds available. While this may seem like a practical option for borrowers with low credit, title loans come with extremely high rates and sometimes short repayment periods. On top of all that, if you cannot pay your title loan on time, then your vehicle could be repossessed–which for rideshare drivers can be devastating, as it directly impacts your ability to earn an income. CreditNinja recommends avoiding title loans if possible. 

Payday Loans

Payday loans are short-term loans that make a few hundred dollars available for borrowers. While they can seem like convenient loans for Uber drivers with low credit, they can quickly lead to a cycle of debt. CreditNinja recommends installment loans over payday loans. 

How Can Rideshare Drivers Be Eligible For Loans?

In order to qualify for quick payday loans and other similar loans, most lenders simply require a few pieces of information. This info includes your income, place of residence, and a government-issued photo ID. 

Rideshare drivers for a company like Uber can prove their income for a loan by showing the lender bank account statements, tax returns, or income documentation given to the driver directly from Uber. They can then show proof of residency with something like a utility bill or piece of mail with their name and address on it. Lastly, Uber drivers can easily use their driver’s license as a form of government-issued photo ID.

How Financing for Rideshare Drivers Work

After receiving all the required information, lenders will then look at an applicant’s credit score in order to determine approval, as well as loan details like terms, rates, and funding amounts. 

Usually, borrowers with excellent credit have a better chance of receiving approval for personal loans with convenient terms, low rates, and higher loan amounts with most lenders. Borrowers with a low credit score may have a more challenging time finding loan approval, or if they do, they are typically paired with higher rates and lower loan amounts.

If your credit score meets the lender’s qualification requirements, they will then draw up a contract for you to sign. Before signing your loan agreement, read it carefully. 

The contract will have all of the official details of your loan, including interest rates, loan term, origination fees, and more. Make sure everything in your loan agreement makes sense, and have your lender clarify anything you find confusing. Once you feel comfortable with your contract, you can sign it and receive your funds instantly in some cases, depending on the lender and banking policies.

While the funding process may be easy, payday loans may not be the best financial investment. You may want to look into other loans for truck drivers or other driving occupations like Uber. If you have other options available, utilize them first before turning to payday loans. You will most likely find you are able to find better rates, terms, and funding amounts elsewhere.

What Rideshare Drivers Can Use Financing For

There are all kinds of expenses for Uber and Lyft drivers, many of which financing can be used for, here are some examples:

• Car Purchase or Upgrade — Whether you need new parts on the inside or outside of your vehicle or are upgrading your vehicle by getting a new one, a loan can pay for those costs. 
• Vehicle Repairs and Maintenance — When you use your vehicle for work, maintenance, and repairs are essential to stay on top of, and if these costs are unexpected, financing can help take care of them.
• Insurance Premiums — For rideshare drivers, insurance premiums may be higher than standard personal auto policies due to the increased risk and mileage associated with commercial use. 
• Working Capital — Financing can support daily expenses like gas, car washes, mobile data plans, or even accessories (e.g., phone mounts, chargers, etc.). As well as investments that could lead to future sales opportunities—like enhanced customer experience or expanded service hours.
• Down Time Recovery — Rideshare drivers are independent contractors or gig workers which means they don’t receive certain benefits like healthcare, retirement benefits, or paid time off. For those gaps in pay, a loan can help. 

Loans for Rideshare Drivers With Bad Credit

Having a bad credit score can be a hindrance when trying to secure a loan as an Uber driver or otherwise, however, it may still be possible to find funding. 

Keep in mind that the lower your credit score the more you’ll pay for financing, however, that doesn’t mean you still can’t get a fair deal for your credit profile. Most of the options you’ll find are bad credit loans such as title loans, cash advances, payday loans, or bad credit personal loans or installment loans. These lenders will focus on your income and ability to repay your loan over your credit history or score for eligibility. 

Why Choose CreditNinja as Your Financing Solution

If you need financing as Uber, Lyft or any other rideshare driver and don’t have the best credit, CreditNinja is here to help! Here are some of the benefits of our personal loans: 

• Fast and Transparent Financing  — You can apply for a CreditNinja loan online in just a few minutes. The approval process is fast, and once approved you can have the funds available as soon as one business day.*
• Bad Credit is Okay — You don’t need excellent or fair credit to get a personal loan with us.
• Competitive Interest Rates — Our interest rates are competitive.
• Excellent Customer Service — Our customer service agents are helpful throughout the process, we are easy to reach, and pride ourselves in our ability to communicate effectively and clearly.
• Steady, Flexible, and Simple Repayment — You’ll repay your CreditNinja loan in steady monthly payments, and you can repay your loan as early as you would like without any fees or penalties. 
• Use Your Funds for Any Expense — Whether it’s car repair, insurance, or everyday driving expenses, you can use the funds from a CreditNinja loan for almost any expense. 
• Keep Your Car — Unlike some secured loans like title loans, you don’t need to risk the ownership of your vehicle. 

Regardless of whether you choose us for funding or not, CreditNinja recommends a personal loan or installment loan over payday loans, those alternatives can be just as fast and flexible, without the high costs and cycle of debt. If you are ready to start with CreditNinja, simply head to our website and fill out our easy online application!