Harry, Author at Live Debt Free

Better Side Hustle: Uber or Lyft?

11.29.2021 by Harry // Leave a Comment

Deciding which rideshare companies will be a better side hustle for you will depend on several factors. These will include your location, how often you drive, what time of day you drive, and your personal preference on what the brand stands for.

While Uber pays more per distance driven, nationwide Lyft pays more to its drivers on average. In addition, Uber is considered more professional, while Lyft is a more casual company.

What is required to get started?

Both Uber and Lyft require you to be of legal driving age for your state and city. You’re also required to have a legal driver’s license and insurance to drive for either company.

Your car must not be older than 15 years from the current year, be a four-door with no body damage. Both will run a driving and background check before allowing you to drive. This is where they begin to differ.

Uber

You need at least one year of driving experience. If you are younger than 23, you must have three years of driving experience.

Lyft

The vehicle must have five seatbelts, no more than eight seatbelts, and less than 350,000 miles on the odometer. Lyft also requires drivers to complete a community safety program before allowing them to drive on the platform.

Which company is easier to start driving for?

Both ensure the safety of riders using the platform. Lyft has more requirements for the drivers’ vehicle and requires an extra education program before starting.

Based on the extra things required by Lyft, it will take longer to get started on the platform than its competitor.

https://therideshareguy.com/side-hustle/

Do I get a sign-on bonus?

Neither Uber nor Lyft currently offers a sign-on bonus. However, both offer a series of bonuses that encourage you to drive during busy times, increasing your overall paycheck.

Lyft currently offers more incentives, but Uber’s can come in useful as well. Below are the different bonuses and promotions the two platforms provide.

Lyft

Lyft offers personal power zones to encourage more drivers during busy times. In addition, Lyft offers ride streaks for consecutive rides. Lyft also provides an earning guarantee and ride challenges to prompt enough drivers to satisfy its riders.

Uber

One of the bonuses for Uber drivers is the extra money for consecutive trips made. In addition, Uber also has a promotion called Quests. This consists of a bonus for making a set number of trips of a specified number of days.

Which one trains drivers more?

Both platforms give training to their drivers on how to use the app. However, Lyft tends to have more comprehensive training.

Both platforms have developed a functional app for drivers to use. For example, Lyft has a function to contact riders if they have trouble finding the pickup location.

Which one earns more?

Depending on what area you live in and how many users are regulars on each app, this can vary.

Both platforms are good if you’re looking for money right now. Lyft may be a good option for some, while Uber benefits are better for others.

Both side hustles can be lucrative. On average across the nation, Uber drivers tend to make a little more per hour. Therefore, it would help to weigh the benefits when calculating the earning potential for either of the two rideshare companies.

Which one is better to drive for overall?

While Lyft offers its highest-rated drivers some nice perks, Uber isn’t without its benefits. So, it just depends on what you’re looking for when considering this side hustle.

Lyft’s highest-rated drivers get things such as 24/7 roadside assistance and free taxes. If you use either incentive, the saving will put money back in your pocket. On the other hand, Uber offers discounts on gas while using the Uber debit card and discounts on maintenance and bodywork.

Uber offers by far the most beneficial bonus to its highest-rated drivers, with the driver or their family receiving free online tuition at Arizona state university. This online school is a great option that makes many pick Uber over its competitor.

Does either offer a car to use?

Lyft has begun offering a new rental car program. While it is not free, it does allow you to drive a car other than your own. Not to be the odd man out, Uber will enable you to rent through one of its partners.

If using one of Uber’s partners, the vehicle will be fully insured and registered. You will have to pay a rental fee, so this is good for people who have a car in the shop getting repairs or want to try before they dive into this choice of side hustle. Not everyone is eligible, so check before you make this your deciding factor.

Which side hustle is better for you?

If you’re an international driver, Uber is going to be your top choice. This is because Lyft currently only operates in North America.

You would need to weigh the different options for all North American drivers to see which will benefit you the most. Each platform is a good side hustle if you don’t mind driving and having random people in your car. On the other hand, if you are an active driver, accept a good majority of rides, and receive good ratings, you can make decent money driving for either platform.

Does it Pay to Drive Uber as a Side Hustle?

What about my insurance?

Drivers should let their insurance company know if they are driving for either platform. Your insurance rate will go up as a driver on a ridesharing platform.

Even with the added expense in mind, you should still inform your auto insurance company because you may find yourself out of pocket if involved in an accident. In addition, drivers who don’t have the right insurance can receive coverage if involved in an accident while driving on either platform.

Image credit: Peter Berglund

Best P2P Lending Platforms in 2021

11.19.2021 by Harry // Leave a Comment

Are you looking for loans to fund your next big purchase? A P2P lending platform may be able to help you! However, there are so many different options out there. You will want to make sure that you are choosing a reliable platform that is going to be worth your time.

Many of the most trustworthy sites have more than ten years’ worth of experience. These sites are very secure and consistently deliver your loans. You will not need to worry when you decide to go with one of these long-standing P2P platforms.

What is a P2P Lending Platform?

A P2P, also known as a peer-to-peer lending platform, allows you to get loans directly from others.

This option is best when you want to cut out lenders, such as banks. Many people with lower credit choose P2P lending since they can still get loans in this way.

Many of these platforms use specialized software to match lenders with borrowers. If you are looking for more loan options to pay for something expensive, you will want to consider this method. It is worth noting that you will still need to pay interest on your loan, most of the time.

How P2P Lending Works

P2P lending is a straightforward process and works much like you would expect it to. You will experience a soft credit check, which is there to make sure you can pay back the loan.

Once you make it through this step, the platform performs a hard credit check, then assigns you a rank. This rank or grade shows lenders on the forum what levels of risk they take when investing in you.

At this stage, you have access to the platform! You can make a post about what you need for the loan, as well as what interest rates you can pay. Finally, lenders make “bids” on your post. These bids include the amount the lender will offer- then you choose the one that suits you the best.

After you accept a bid on your listing, the loan amount enters your bank account. You will have to pay it back over time, but you now have the funds for your purchase.

Why Use a P2P?

There are a variety of reasons for anyone to use a P2P platform. Many people use P2P lending to provide funds for personal projects and similar situations. If you do not want to work with an institution, then P2P is your best choice! The sites still report to the credit bureaus, so you can still build your scores using these sites.

https://www.moneyunder30.com/peer-to-peer-lending-sites-for-borrowers-and-investors

However, there are plenty of sketchy P2P platforms online. You only want to borrow from reliable sources, so make sure to check out all the options below.

The Best P2P Lending Platforms

Now that you understand how to use a P2P lending site best, you will want to choose a platform that suits you the best. There are plenty of different sites available, so you will want to choose one that fits all your needs. For example, if you have Fair Credit, then Payoff may be best for you.

1. Peerform

Peerform is an excellent P2P lending platform. The site offers competitive interest rates, does not have prepayment penalties, and is perfect for Fair credit scores. This platform is very trustworthy since it’s been around since 2010. The people running the site also have ample experience in the field because of this.

The maximum loan amount is $25,000, which is not as high as others on this list. Still, you receive great rates and reliable services. It is also worth noting that the minimum loan amount is $4,000.

Overall, Peerform is the best P2P lending platform for many people. It comes with a low credit requirement, which is a 600-credit score. If you happen to be late paying on the due date, you also have 15 days before receiving a late fee.

https://www.thebalance.com/best-peer-to-peer-lending-companies-4580285

2. Payoff

The payoff is another reliable P2P lending platform that you will want to consider. Payoff even works with those who have a short credit history or fair credit scores. Many borrowers also said they appreciated having free access to their FICO scores on the site.

You can also pre-qualify as an added benefit, giving you a higher chance of getting the loans you want. There also are no prepayment penalties, so you can pay off the loan as soon as you are ready.

Payoff also started in 2005, giving the site many years’ worth of experience. The platform also has lower fees and sends you the funds quickly. Their maximum loan amounts also fall between $5,000 and $40,000, which is more than enough money for many situations.

Overall, Payoff is an excellent option for anyone with fair credit who wants to build on their score. Most borrows can find the loans they need there.

3. Upstart

Upstart is a trustworthy P2P lending site that you should also investigate. The starting interest rate is a bit higher than the above two options at 8.27%. However, it is still great for borrowers who do not have an extensive credit history.

To offer loans to more people, Upstart does look at your job history and education, but these factors should work in your favor when you have low credit scores. The platform accepts those with scores of at least 600, which is lower than many other lenders.

Upstart came into existence in 2012. Today, you can borrow between $1,000 and $50,000. Additionally, about 90% of borrowers pay off their loans from the platform- making it an excellent place for those looking to invest on a platform.

4. Prosper

Prosper is another wonderful option, but it is much better for those with a long credit history. Many of their lenders mention appreciating that the site allows them to change their monthly due dates. That way, you can choose a date that will enable you to make payments reliably.

Prosper was the first P2P lending site, which came online in 2005. During the years since the platform has gained a lot of experience and is very well-known. They can be a little slow to provide you with the funds, but you can borrow between $2,000 and $40,000.

This lending platform is best for those with a more extended credit history because the venue requires at least three open credit accounts. Those just starting on building their credit may not have that many credit accounts open. In short, Prosper is very trustworthy and always makes sure that you get your funds from accepted loans.

Final Thoughts

To summarize, there are many trustworthy P2P lending platforms that you can make use of. Many borrowers use these loans to pay for home improvement, new cars, starting a business, and other large purchases- we’re sure you will find them helpful!

Image credit: Wutzkoh

Is the Experian Credit Boost Worth Your Time?

11.19.2021 by Harry // Leave a Comment

The latest program offered by Experian is their Credit Boost tool. This gives people a better FICO score by submitting monthly paid bills. You use the tool in combination with the mobile app or on a computer. So, when you use the credit monitoring service, you can benefit from alerts and other notifications sent to you by Experian.

But is the Credit Boost program by Experian worth your time? Since it is free to use, it could be a great benefit.

However, this is only to the extent of how comfortable you are sharing your banking information with a third party. Regardless, it could be very beneficial to help keep you afloat and obtain some of life’s necessities.

It is important to note, though, this service will not be suitable or worth it for specific consumers. For example, if you have a good or really bad credit score, something like this will not be worth your time.

The Nuts-and-Bolts of How Credit Boost Works

This program allows users to add some positive payment history to improve their credit scores. This comes by way of paid monthly bills.

https://www.cnn.com/2021/03/22/cnn-underscored/improve-credit-score-experian-boost-review/index.html

To work, users link to their bank account and other accounts from where they pay bills. This is to verify all transactions added to the history.

The caveat here is that you must be paying the bills on time.

So, any accounts set up with AutoPay to your bank will qualify for Credit Boost. This will not work if you pay your bills with cash, checks, or some other form of payment. They must link directly with your bank account.

Signing Up for the Program

You can sign up for the program on a computer or mobile app. There’s a small amount of initial information that you give, and the process is fairly fast.

First, you supply a name, contact information, and the last four digits of your Social Security.

Then, to confirm it is you, you will answer several security questions.

Once your bank account syncs up with Experian, they can access the last 24 months of payments to add to your credit profile. But, you have to have a minimum of three months of payments within the previous six months. However, you can pick and choose which ones to process and go through.

Accepted Payments That Aren’t Usually on Your Credit Score

Experian will process a host of payments that usually go unreported to credit monitoring organizations. They accept things like:

Phone Bills
Internet
Satellite
Cable
Utilities
Water and Sewer
Garbage
Power
Streaming Services (Hulu, Disney + and Netflix)

How It Raises Your Credit Score

Doing this can immediately raise your credit score. Experian claims the average user can raise their FICO by 12 points. They also say about 62% of users do see a score increase. But, there are situations where the score will either stay the same or decrease. Continue reading to learn more.

Security Measures

To keep data secure, Experian employs SOTA encryption to store your credentials.

Soon, they should be able to tokenize the data with financial institutions. This will provide even more security measures to keep information safe, private, and away from prying eyes.

Who Will Benefit from Using the Program?

If your credit score sits at 760 or higher, you may not benefit from using this program. This tool is best for those who have scores ranging between 500 and 620. So, this could be meaningful if you want to get a lower interest rate for something like a personal loan.

But, it can also be helpful to beef up the financial history of a credit report.

For those who have a thin profile, or only a few lines on their profile, adding more data can help raise the score. It shows a history of more positive financial behavior.

What’s more, only those bills paid with a bank account will be eligible for the program. So, if you use any other mode of payment, this will not be beneficial to your score.

Pros and Cons of Experian Credit Boost

As with anything, there are some great benefits to using this kind of program, but there are also some pitfalls with it as well. Consider the differences between the following to see if it is something that could be right for you.

Pros

It is free, quick, and easy to set up and use
It allows users to raise their credit score with bills already paid, even subscription streaming services
The results give consumers more control over their financial prospects
If your credit score lowers after you add a bill, you can remove it from the queue, not affecting your score
If a lender, apartment complex, car dealer, or other such company relies on Experian credit scores, it will help you get some of the things you need

Cons

You cannot include rent payments into the history
There are some reports of people having their credit score go down after using the program. Such a case is a common occurrence for those who recently closed a credit card. This will result in a shift in the score because of the utilization ratio
Sometimes it does not do anything to improve a credit score, and it stays neutral. This is especially true for those with terrible scores or, sometimes, those who have excellent scores
Some people report that it is like playing the lottery. There’s no way to know the result until after the bills get added to the history
Experian is not the company that accesses your bank account, and it’s a company called Finicity. They access the information and streamline it to Experian. This means a third party is grabbing your data
Using Credit Boost will not help your score on TransUnion or Equifax, so it will not help you get something like a mortgage.

Final Thoughts

While Experian Credit Boost might be a good option for many people, there are those who it will not serve very well. So, whether it is worth it or not will rely on individual circumstances. For example, those with very high or super low credit scores may not see a benefit. But, those who are in the mid-range might get an excellent boost to their FICO score.

Even still, it is not a guarantee that just because you do it, your credit score will improve. Many things can happen where your score will either stay the same, or it will tank. Regardless of the risks, it may be worth it for those struggling to gain hold of their financial future.

Image Credit: Melpomene