Ironically, many employers refuse to hire someone drawing unemployment or just unemployed, because they want to avoid desperate people, according to the Huffington Post. When an employer runs a credit check he will not see unemployment payments, but he can draw some conclusions from information of your report that could lead him to believe that.
Identification
As of 2010, the credit rating bureaus do not show your salary information or where you receive money, so it will not affect your score, according to John Ulzheimer of CNBC. Before the 1990s, credit reports did include unemployment claims and wage information, but the bureaus dropped this because of unreliability in salary reporting.
Considerations
Credit reports contain personal information, such as your current and previous employer. If you frequently switch jobs, the lender could question stability of your life. More than two job changes within a year could give the lender an impression you are a poor credit risk or that you need social services, including unemployment.
Where Do Agencies Get Information
The credit rating bureaus gather personal information from credit applications. After you apply with a lender, he will forward information from the application to the credit rating bureaus if he approves your request for a loan, according to eXtension. (ref 4)
Tip
Lenders weigh personal information almost as heavily as the score itself. Mortgage lenders are especially picky about your job situation and working for someone for less than two years or not having a job could sway the loan officer to reject your application, according to Liz Weston of MSN MoneyCentral.
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