Can Working More Than One Job Affect Your Credit?

Can Working More Than One Job Affect Your Credit
Mike Randall
By: Mike Randall
Updated: July 25, 2014
Experts share their tips and advice on, with the goal of helping subprime consumers. Our articles follow strict editorial guidelines.

These days having a job – any job – is something to be thankful for.

But many of the jobs that are out there are low paying or may only offer a limited number of hours per week. If you’re trying to pay down debt and improve your credit, you know how hard that can be on a small paycheck.

That’s why a lot of people choose to work more than one job if they can to make up for the shortfall in their income.

Can working more than one job affect your credit?

The benefit of having an extra source of income is pretty obvious, but that alone won’t help to improve your credit.

If your credit is poor because of bad payment history or high utilization (how much you owe), then the extra income might help you to get back on track.

First, you have to come up with a plan. If you want to impact your credit in a positive way, there are some effective ways of doing it quickly.

The thing to start with is to identify your individual debt obligations and devise a strategy for paying them off.

Using the extra income from more than one job can be a way to pay off small debts quickly, which has an immediate positive impact on your credit.

If you have multiple credit cards, choose the ones with the smallest balances and pay them off using the extra money you have coming in.

However, one thing to remember is don’t close the cards. Just keep them in a drawer somewhere. You want to continue having the card active and with an available balance.

“Working more than one job

can have a positive effect. 

After paying off the smaller balances, you should begin to see an improvement in your score already.

By taking the money you’ve been earning and now applying it to your other debts, you’ll really start to see an improvement.

If you continue doing this, and make sure all of your payments are made on time, before long your credit will be good to excellent.

Other factors:

If by working more than one job you end up spending more money on gas and food, it may not be as helpful as you think.

Take a close look at your expenses and see whether getting another job will be a good idea for you.

Consider asking for a raise from your current employer. If you have been a good employee, don’t be afraid to ask for a reward. Taking on new responsibilities may lead to a better position within your company.

Working more than one job can have a positive effect on your credit if you use the right strategy. Make a plan and stick to it.

Soon working more than one job might not even be necessary.

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