Even as economists debate whether the U.S. could experience a double-dip recession, unemployed and underemployed Americans agree on one thing: looking for work can get expensive. Fortunately, the best credit cards offer ways that you can actually save money during your job hunt, as long as you use them responsibly.
Best credit card for the all-important interview outfit
In a recent interview, New York style adviser Allison Berlin told CBS News that few job seekers need to spend more than $500 on their core interview outfit. For women, a simple sheath dress and a sharp pair of shoes will fit the bill. Men should invest in a classic wool suit.
According to experts at Virginia Tech's Career Services Center, your interview suit's designer doesn't matter nearly as much as how well it fits. Investing just $50 in custom alterations can make even an inexpensive suit or dress help you look corner-office ready.
Blue Cash Everyday® Card from American Express (American Express is a CardRatings.com advertiser) this credit card offers 2 percent cash back on your eligible purchases at select U.S. department stores. Terms and limitations apply. Your cash back earned is received in the form of Reward Dollars that can be redeemed as a statement credit. There's no annual fee. Terms and restrictions apply. By the way, this card also offers 2 percent cash back on purchases as gas stations (along with cash back rewards for purchases in other select categories), so you'll earn when you stop for that fill-up on the way to your interview.
If you make the first cut and are called back for a second interview, personal finance expert Barbara Friedberg suggests scanning department stores for clearance-priced accessories. Jazz up your basic suit or dress with a pop of color from a sharp tie or an accent pin. If you feel overdressed during your first interview, hit the sale racks for a blazer and matching slacks or skirt.
Best credit card for basic job-hunting expenses
Chase Freedom® right now, new Cardholders can get a $150 bonus after spending $500 on purchases in your first 3 months from account opening. This means that Chase could end up picking up part of the tab for your basic interview wardrobe.
You can also earn 5 percent cash back on up to $1,500 in combined purchases in bonus categories each quarter you activate and unlimited 1 percent cash back on all other purchases, giving you something back on related expenses such as online job-search services, networking power breakfasts, resume preparation, interview coaching, and so on.
If you need time to payoff your job hunting expenses, look for a low rate card like the RBC RateAdvantageTM Visa.
Best credit card to keep the gas tank full
A government survey estimates that most Americans spend just under a half-hour commuting to work every day. When researchers from Gallup excluded telecommuters from a similar poll, they bumped their best guess to a 45-minute round trip to the office. Your first commute, of course, is to the job interview.
Booking multiple interviews could force you to drive in opposite directions throughout the week, so you could easily spend a chunk of your savings on gasoline. Gas rewards cards shave some of those costs, letting you earn back some of your gas money as rebates or bonus merchandise.
PenFed Platinum Cash Rewards Visa® Card can keep you moving through the job market with an unusual combination of bonus rebates and low finance charges. New cardholders of the Plus version of this card can earn can earn 5 percent cash back on gasoline when they pay at the pump. To be considered for the Plus card you also need to have a PenFed qualifying product such as a money market savings account or IRA certificate to name a few and you must be a member of PenFed Credit Union to apply for the card. There is no annual fee with the Plus version of the card.
Of course, PenFed reserves its best rewards credit card for applicants with excellent credit. According to the credit union's website, unemployment doesn't necessarily block you from contention, as long as your credit profile shows that you've worked hard to pay your existing bills on time.
Other top cards to help offset the cost of gas: Wells Fargo Propel 365 American Express® Card, M&T Visa Signature, and the Fidelity® Rewards Visa Signature® Card.
Best credit card for out-of-town job offers
Today's job market forces us to make hard decisions. Sometimes, the right opportunity just isn't in our own backyard. According to government statistics, about one in eight Americans told census takers that job opportunities prompted their most recent move.
And about three in 10 of us moved to stay close to family members, including spouses who had to relocate for work. Not every employer foots the bill for candidates to interview in person, making a flexible travel card essential if you intend to take your job hunt on the road.
Capital One® Venture® Rewards Credit Card offers the benefits of an airline credit card with the earnings potential of a traditional cash rebate credit card. With $0 introductory annual fee for first year; $59 after that. Enjoy a low introductory APR on purchases until April, 2017; 12.24%-22.24%, variable APR after that.
This Capital One credit card plugs cardholders into an innovative way to redeem miles for travel.
You can earn 2X miles for every dollar you spend on the card for purchases, which you can redeem for flights on any airline. Use your leftover miles for hotel stays and car rental fees, and a good chunk of your entire out-of-town travel for your interview could be covered by your miles.
Can I get a credit card if I'm not working now?
If you're not currently employed, applying for a new credit card while you're looking for work may sound like an exercise in futility. But as long as you've stayed current with your credit card payments, lenders still want to see your application. Your prospective credit card issuer really cares more about whether you're a solid risk than where you intend to work.
Just make sure you don't use a new line of credit to replace your lost income. Stay frugal and focused, using your credit card's rewards to offset the cost of finding a new job--even if you're presently employed.