Part-time work is increasing in Canada. Many standard 9 to 5 jobs have been replaced with reduced-hour roles, and freelancing is becoming the new normal. While many people choose to work part-time shifts, others do it out of necessity, particularly women. Women are over-represented in non-standard and precarious employment. Almost a quarter work part-time, and despite working more hours, are paid 37% less than men for platform-mediated gig work.
As a woman, when you need money to cover a sudden cost, access to credit can get complicated. In this post, we’ll look at what kind of loan you can get if your income is unpredictable, coming from multiple sources, or supplemented with government financial assistance.
Personal Loans
Generally speaking, traditional personal loans have requirements that make them inaccessible if you’re working part-time. Banks and credit unions tend to want to see consistent income, a decent credit score, and a history of full-time employment. Even if you’re earning enough to repay the loan, your application may still be declined if your income is irregular or hard to document. This is often the case if you’re juggling freelance gigs or caring for children while receiving welfare support.
Payday Loans and Short-Term Credit
Each province regulates payday lenders slightly differently, but in terms of how Canadian payday loans work, the basic idea is the same. They’re a faster and flexible option with fewer requirements than payday loans. You borrow a small amount for a short time, typically days or weeks, then repay it on your next payday.
Even if you receive financial assistance like EI or Ontario Works, you may still be eligible. It’s important to understand the total cost, as these types of loans are more expensive than traditional credit; you pay roughly $14 for every $100 borrowed. However, they may still be viable if you’re facing a financial emergency, you don’t have other options, and you’re prepared to take on the cost.
Credit Cards and Lines of Credit
If you already have a credit card, it can be useful to bridge the gap between unseen expenses and payday. However, if you’re applying for a new one, it can be virtually impossible to get approved without full-time employment, steady income, or strong credit. A secured credit card may be more realistic. This is where you put down a cash deposit to cover the limit on the card, but it requires foresight and isn’t an option if you need a loan right now. Lines of credit are even tougher to access if your income isn’t easily verifiable.
Community and Alternative Lenders
Community programs, credit unions, and nonprofits sometimes offer small loans for women with limited income. They often come with lower interest rates and flexible repayment terms. You’ll still need to provide documentation, and may have to attend a financial literacy course or meet with a caseworker, but if you’re not in a rush, these may be worth exploring.
Endnote
Women in Canada face many complex issues that put them at a disproportionate risk of financial hardship, from childcare responsibilities to unequal pay in the gig economy. If you’re a woman working part-time, freelancing, or receiving benefits, making ends meet can be a struggle. That doesn’t mean you don’t have options. If you can’t borrow money from friends or family, payday loans and microloans from nonprofits are still on the table. Just remember to read the fine print: a little caution goes a long way when borrowing on a limited income.
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