Payday Loans For DoorDash Drivers
Doordash Drivers can make a solid income, with base pay ranging from $2-10 per delivery plus tips and promotions. Some research indicates that you can make around $25 per hour (before expenses), and with great flexibility over when you work and what jobs you take, it’s appealing to many.
That being said, processing fees for payment may take some time, and unexpected expenses (especially around car maintenance) can be expensive and require upfront funds now… even if payday is a few days away. In that case, payday loans for Doordash Drivers may be a good choice.
How Long Does It Take for DoorDash Drivers to Get Paid
Dashers are paid on a weekly basis for all deliveries from the Monday-Sunday period, ending Sunday at midnight. There’s typically a 2-3 day processing period, after which the money will appear in their bank account (usually by Wednesday night).
What Are Payday Loans for Doordash Drivers?
Payday Loans are incredibly short-term loans for relatively small amounts of funding, like $100-500. The loan amount is based on your income, and you’ll repay it when you receive your next paycheck.
Payday loans are meant to hold you over until the next paycheck, almost like a cash advance. If you need to replace your tires, cover a small emergency bill, or even come up with rent quickly, payday loans can get you the cash as long as you have it coming in by your next paycheck.
How Do Payday Loans for DoorDash Drivers Work?
Payday loans are based on your income, so you’ll submit proof of income when applying for a loan. Depending on the financial institution, this may be a 1099 or payment records from DoorDash.
Payday Loans typically do not look at your credit, and they don’t count against your credit unless you fail to pay them, making them a great choice for borrowers with low credit scores.
Once the loan is approved, you could receive funds same-day.
While each loan typically has different term conditions, most payday loans are designed to be paid off in a single lump sum in between one and two weeks, or when the next paycheck hits. Because the term is so fast, interest rates are often very high, typically around $15 per $100 borrowed.
Should DoorDash Drivers Use PayDay Loans?
A quick Google search will show that there are plenty of different cash advance and payday loan options that are advertised specifically to DoorDash drivers.
It’s important to consider the downsides. The high interest rates significantly eat into your profit, with around a 400% APR, so getting stuck in the trap of using payday loans regularly can be difficult to get out of.
You may be able to consider other options to reduce monthly payments or leverage credit without taking out regular payday loans, like refinancing existing loans for a lower monthly payment or using a credit card to have more flexibility for when to pay of purchases.
That said, if you need a one-time cash pay out quickly, this can be a good option. There’s no long-term waiting period, and it’s almost instantaneous without impacting your credit.