3 Struggles of Managing Credit Cards as a Gig Worker

If you're a gig worker who uses credit cards, it's best to take extra care. Credit cards are a valuable financial tool that can make it easier to pay bills, and you can earn valuable rewards for your spending. However, some gig workers experience unique struggles when managing their credit cards. I'll outline some challenges to watch out for and suggestions to help you overcome them. 

1. Affording unexpected expenses 

No matter your work situation, emergencies can happen when you least expect them to, and some are more costly than others. However, some gig workers operate on a limited budget, and they may have minimal extra funds to cover unexpected costly bills that come their way. If you have a meager emergency fund, other options exist to pay for unforeseen expenses. 

Instead of charging your everyday credit card for a costly bill, consider applying for one of the best 0% APR credit cards. Some credit card issuers offer an intro 0% APR on purchases for a set time. During the promotional period, no interest is charged as long as you pay your debt off before the promotional period ends. This is an excellent strategy to finance a pricey purchase. 

2. Income inconsistencies

It's common for freelancers and gig workers to experience income fluctuations. You may have busy seasons where your earnings are steady and plentiful, but if opportunities slow down, your income may change. 

This can make managing your money challenging, especially when paying your credit card bills. But remember, it's best to pay your entire credit card statement in full to avoid expensive credit card interest charges. 

One way you can be prepared to pay your bills even when money is tighter is to set aside extra cash in a high-yield savings account when your earnings are plentiful. Doing this can provide a safety net later if work slows down. 

3. Forgetting to pay your bills on time

Life can get extra busy when managing a small business or handling gig work. If you struggle to remember due dates when work is busy, you may forget to pay your credit card bills on time. 

Missed and late payments are bad news for your credit because they can result in negative marks on your credit report. What's more, many credit card companies charge late fees when you pay your bill late. This added cost can negatively impact your personal finances. 

One way gig workers can set themselves up for success is to use tools and alerts to stay on track so they no longer forget to pay their bills. You can opt in for payment due date reminders through your online credit card account, so you stay caught up. 

Another option is to set up automatic payments, so your credit card bill is paid automatically every month. This way, you'll no longer need to remember to make payments manually. 

Use credit cards with care 

If you're a freelancer or gig worker, there's no need to avoid using credit cards. They can be helpful. But ensure you take extra care to set yourself up for success when using them. Consider applying for a business credit card if you earn business income through gig work. These credit cards may provide valuable perks that help you run your business more effectively.