We’ve been on lockdown and many of us have been on unemployment. With many of us back to work, we wonder if receiving unemployment benefits will affect our credit score.
The fact that you are unemployed will not hurt your credit score.
You can file for unemployment without worrying about this affecting your future employment prospects, and it won’t show up on any of the records in a credit report either. The only private information contained in a typical credit card is an individual’s financial accounts or hard inquiries pulled by companies trying to extend services as well as bankruptcy filings (if applicable).
This passage addresses one possible concern people may have while being out of work- their likely impact on their personal finances including how filing for unemployment could affect them later down the road when they look into getting back into the workforce again.
Does unemployment affect credit scores?
When you’re unemployed, it can be difficult to make every credit card payment on time. However, if you keep up with paying at least the minimum amount due each month then your score will remain relatively unaffected by those missed payments.
Being unemployed doesn’t directly impact a person’s credit score; however this does not mean that there are no consequences of unemployment in relation to one’s financial identity and standing within society as a whole – especially when it comes down to being able-bodied enough (and financially stable) for employers across America who require money upfront from potential employees before they even start doing work for them or their company.
However, using your credit cards in excess may have affected your credit score
The lack of employment can be hard on your bank account. One possible consequence is that you may find yourself in a situation where someone feels obligated to use more credit than they usually would, which could affect their credit score significantly enough for them not to qualify for loans or an apartment lease later down the line.
Your best bet is keeping it under 30% utilization by using no more than $3,000 at one time and paying off all balances every month as soon as you get paid!
The CARES ACT
The CARES Act is an important law that will give consumers a sense of relief in the event of economic turmoil. Although it may be hard to remember now, we need only look back as far as 2007 and 2008 when countless Americans lost their homes or jobs during the recession to see how these protections can help out if things take another turn for worse.