Over 36 million people depend on jobless benefits, such as food stamps, which are available to everyone from the chronically poor to the newly unemployed. Filing for unemployment compensation seems like it would take a toll on your credit rating because it is a sign of fiscally hard times, but it does not affect your credit score.
Identification
As of 2010, filing for unemployment compensation does not show up on your credit report with the major bureaus and has no affect on your credit whatsoever, according to the Experian credit bureau website. Credit reports only reflect hard financial data, such as bankruptcy, court judgments and tax liens.
Considerations
Although changing jobs does not factor into a FICO score calculation, lenders can see a change in jobs, according to SolveYourProblem.com. If you frequently change jobs and have long lulls in the employment line, it appears that you have an unstable employment history. Creditors might hesitate to lend to you if you look like someone always on the move.
Effects
Unemployment can affect you indirectly, because unemployment benefits pay you less than the wage at your previous job, according to the Department of Labor. A reduction in income could make it hard for you to pay your bills. If you are late on your installment payments, this reflects negatively on your credit score.
Tip
State unemployment benefits lasts only 26 weeks. You receive an extra 13 weeks during times of financial duress in the U.S. economy. If you anticipate a long period of unemployment, contact your creditors. Creditors may lower your payments or defer your bills until you find gainful employment.
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