If you’re working part-time and you’re considering getting a credit card, read our guide to find out everything you’ll need to know – from the process of applying for a card to getting accepted for credit.
39.9% APR Representative (variable)
Intelligent Lending Ltd (Credit Broker). Capital One is the exclusive lender
There are many benefits to working part-time, like balancing your job against your other commitments. For example, if you’re a parent then finding a job that will let you organise your shifts around picking the kids up from school can be ideal, as it means you don’t have to spend money on childcare.
However, when your income is lower it might mean that money’s tight. You may also find it a bit tricky to get accepted for a credit card. It’s not impossible though. Read on for more information on applying for and using a credit card when you work part-time.
There are definitely some benefits to working part-time, especially if you’ve got kids and you’re trying to fit in work around the school routine. If you work flexible hours, you might be able to agree shifts with your manager that fit around your busy schedule – which can save you shelling out for costly childcare.
Even if you’re not a parent but you have other commitments – like if you’re a student or you also run your own business from home – part-time work could be a great option for you. You’ll still be able to keep some regular money coming in each month but without working Monday to Friday, 9 to 5. However, there can be a few downsides to part-time employment too, especially when it comes to your finances.
Working part-time can make it really difficult to budget, especially if you work shifts and your income varies from month to month. If you’ve had a really good month and worked lots of shifts, you might be tempted to spend all the money you’ve made. However, next month you might not get as much work and you could be short of cash to pay your bills if you didn’t save anything from your last paycheque.
Alternatively, if you’re thinking of making a big purchase, you might find that you don’t have enough disposable income left for this if you’ve had a tight month so it could take you longer than you planned to save up for it.
In these scenarios, you may find yourself considering applying for a credit card. This could make it easier for you to pay your bills or for goods outright and to make smaller, more affordable monthly payments to cover the cost of the big purchase you made.
The amount you earn can affect your ability to get a credit card. Some card providers have a set minimum income that you have to earn to get accepted for the card. If you work part-time, it’s less likely that you’ll meet this requirement.
Credit card providers may also be unwilling to accept you if your income fluctuates, as it may not give them the assurance you’ll always be able to make your payments on time. Alternatively, your application might be accepted but at a lower credit limit than you were expecting. Don’t feel too discouraged though – you absolutely can get a credit card with a part-time job, you’ll just need to find one that’s right for your situation.
Read more in part 2 of our guide here.
39.9% APR Representative (variable)
Intelligent Lending Ltd (Credit Broker). Capital One is the exclusive lender