Editor's Disclaimer: GigsPayday provides detailed product reviews and recommendations based on extensive research and our hands-on testing. We may earn a referral fee when you sign up for or purchase products mentioned in this article.
Getting a loan, whether personal or short-term, sometimes becomes a long and difficult task, even if you have a regular W-2 job and an excellent credit score. But what about our hardworking rideshare drivers (Uber and Lyft drivers) and other gig workers? They don’t have good-standing W-2 jobs to prove their income stability. Just imagine how hard and longer for them to get loan approval, but good things happen, and it is not impossible now.
- It might be difficult for gig workers, freelancers, and the self-employed to qualify for a loan, but it’s not impossible to do so.
- Unlike regular W-2 employees, gig workers must show lenders extensive proof that they earn a steady income.
- Pre-approved loans, paying a large down payment, or having a good income history spouse with a W-2 job can help gig workers.
- Platforms like GigsPayday or GigsCheck have dedicated lenders who offer short-term loans, cash advances, payday loans, and installment loans to gig workers and the self-employed.
Why it is so difficult for Uber and Lyft drivers to qualify for a loan?
I think we all know the answer, but let’s explain. Because gig workers such as Uber and Lyft drivers earn unpredictable and irregular income. Due to this financial instability, loan companies are nervous and confident.
When you apply for a loan, lenders always carry a risk of lending money. To cover such lending risks, they typically choose those who can prove they earn a stable income and pay back loans on the agreed date. Banks and other credit options want to ensure that you will pay them back what you borrow.
Since working in the gig economy, delivery drivers, rideshare drivers like Uber and Lyft, and even independent contractors face fluctuations in their monthly income, which are often categorized as an “unreliable income.”
However, the good news is that some practical steps help you prove yourself not as risky as banking institutions think you are. You’ll need to follow a few things mentioned below:
- At least two years of tax returns
- Proof of regular, steady income (a year or more, and many banks require two years!)
- Profit and loss statements for your business
- Bank statements
What are the challenges facing when applying for a loan as an Uber or Lyft driver?
The most important challenge that makes it difficult for Uber and Lyft rideshare drivers is to prove that they earn a steady income. Banks and other traditional loan companies do not take income from the gig economy seriously. They do not view it as a legitimate source of income to qualify for a loan.
Additionally, independent contractors like Uber and Lyft drivers take deductions on their taxes, which shows they earn a lot less. You even do not attach your unemployment income that many drivers earned during the pandemic. Such types of income are considered “temporary income” and are available only for a few weeks.
Even though gig workers collect unemployment benefits during a pandemic, loan providers still do not consider them stable incomes and are counted for loan approval.
How to Improve Your Credit “Worthiness”?
I know you think it is difficult for gig workers to qualify for a personal loan, but it is not impossible. There are certain things that you can do to make yourself less risky to lenders and loan companies.
- Ensure you earn a steady income, as it is crucial to get loan approval.
- Attach one partner with a stable income to increase the chances of loan approval.
- Practice accumulating savings and maintaining a healthy bank account balance.
- Consider applying for a small amount of loan as it is easy for lenders to approve.
- Established a positive history with your lender or loan company by making on-time or one-time payments.
Proven tips for Freelancers and Gig Workers (Uber and Lyft) to get a loan in 2025
Qualifying for a loan will be more difficult with gig economy income, but not impossible. Many rideshare drivers and gig workers at Uber, Lyft, DoorDash qualify for a loan. As you move through the loan application process, here are a few important things to remember:
- Plan ahead with all your necessary documents in advance, such as tax returns, profit/loss statements, proof of down payment, bank statements, etc.
- Remember that you may have to get rejected by different lenders and finance companies until you identify the one that best compares with you.
- Be advised, if you are a gig worker, the application process likely will take longer than the process for employees with traditional jobs.
- Be patient and be realistic.
Have you attempted to qualify for a loan as a gig worker? Facing declined? Don’t worry; GigsPayday is the lifetime financial partner for hardworking gig workers, freelancers, 1099 workers, independent contractors, rideshare drivers (Uber and Lyft), and self-employed.
