Does applying for unemployment hurt your credit? California EDD question

Oh thank god. I've been sitting on this for two weeks because of what he said. Filing tonight through myEDD (https://myedd.edd.ca.gov/).

Same thing happened to me, I delayed like two weeks because someone said it was like a loan inquiry lol. It's not. File ASAP.

The Sunday start date thing is so important and nobody tells you. I lost a full week because I waited until Monday thinking the weekend didn't count.

Good to know about the DE 4800. I haven't gotten there yet but I'll keep this in mind if I end up with an adjudication issue.

DE 4800 is the interview notice, right? I keep seeing people mention it but mine had a different form number on top — maybe I'm misreading it.

Yeah the DE 4800 is the one that shows the date and time for your phone interview. The interviewer phones at that time so you just keep your phone nearby and available.

Didn't know you could prep documents ahead of the interview. I just answered questions cold and it went okay but having records ready makes way more sense.

Actually this is super relevant because I'm also worried about renewing my lease. So the DE 429Z notice that shows my weekly benefit amount, is that what I'd show a landlord as proof of income?

That's what it is yeah, the Notice of Unemployment Insurance Award. Whether your specific landlord accepts it is their call, not EDD's rule. Some do, some ask for bank statements instead.

My landlord wouldn't accept the award notice alone but did accept it combined with my bank statements showing the deposits. Worth trying both.

No indirect effect either. EDD reports nothing to any bureau. The only way unemployment affects your credit is if you can't pay your bills because you're living on a reduced income — that's your own payment behavior, not EDD reporting anything.

Okay that makes sense. So the risk is just cash flow management, not some hidden reporting mechanism.

Exactly. And the weekly benefit amount from EDD is usually lower than your old paycheck, so budgeting matters. But zero credit reporting going on.

Wait I thought workers paid into unemployment through their paychecks? I see deductions every pay period.

The CASDI deduction on your stub goes to State Disability Insurance and Paid Family Leave, not unemployment. Unemployment is funded entirely by employers. Easy mix-up though.

Oh wow I had no idea. I've been thinking I was paying into unemployment this whole time.

I literally thought the same thing until just now. Good correction.

How long did your first payment take after you filed?

About three weeks for the whole first payment, which covered the waiting week and one paid week. The waiting week is unpaid — every claim has one — so don't freak out when the first certified week shows as zero.

Nobody warned me about the waiting week. So the FIRST week I certify I get nothing paid out?

Right, that one week is served unpaid. After that the payments come through. It doesn't reduce the total amount the claim can pay, it's just the structure.

No. When you apply for a credit card the issuer sees your credit file and what income you report on the application. EDD data is not on your credit file. If you choose to report your benefit amount as income on the card application, that's your disclosure, not EDD reporting it.

So I'd have to decide whether to list my weekly benefit as income on the application myself.

Yeah it's self-reported. Some people list it, some don't. That's between you and the card company.

This thread has convinced me I've already cost myself two weeks by listening to bad advice. Filing tonight no matter what.

You can't go back and get those two weeks but everything from the Sunday you file forward is in play. Just get it in tonight.

Same mistake I made. Filed on a Thursday once thinking it started that day, nope, went back to the Sunday before. At least weekends are included.

Wait pensions reduce unemployment? I didn't know that.

That's what EDD says — a pension or retirement pay from past work may reduce your benefit. EDD decides the actual amount for your specific case. If you've got a pension coming in you'd want to report it when you certify and let EDD calculate it.

Workers' comp is also on the list of things to report when certifying. EDD decides how that affects the payment too. Basically report everything and let them sort it out.

Also a myth. Standard employment background checks look at criminal records, employment history verification, education, sometimes credit depending on the job type. Unemployment benefit claims don't appear on any of those.

My cousin convinced multiple people not to file because of this. Frustrating.

There's so much misinformation floating around about this. The EDD system isn't connected to employer background check databases or credit bureaus. File your claim.

Okay this is news to me. So after I file I need to watch for that specific notice?

Yeah keep an eye out for the DE 8405. EDD will tell you if you need to register — not everyone does — but if you get that notice, the 21-day clock is running.

I missed the CalJOBS requirement first time I filed years ago and payments stopped. Had to scramble to get it done. Watch for that notice for real.

Can you register on CalJOBS before you get the notice just to be safe? Or does it not count until after you file the EDD claim?

How does the ID.me part work? I haven't gotten there yet.

You create an account, take a photo of your ID, and it verifies your identity and shares with EDD. It's just identity verification, not a credit check. Some people find it finicky but it worked for me on the second try.

If the online ID.me verification doesn't go through EDD mails you a Request for Identity Verification (DE 1326C) with alternate instructions. It slows things down but doesn't affect your credit either way.

EDD doesn't report to credit bureaus so it won't be on your credit report for a mortgage underwriter to see. What underwriters look at is your income stability, credit score, debt-to-income ratio. If you're currently on unemployment and applying for a mortgage that income picture is complicated, but that's not EDD reporting anything, that's just the financial reality of reduced income.

Okay so it's not a data reporting issue, it's just a practical income question.

Right. Nobody's pulling an 'unemployment history' report. It's not a thing that exists.

That's genuinely reassuring. I was weirdly worried about that too.

The payments come from EDD's Money Network prepaid debit card or direct deposit depending on how you set it up. Direct deposit just lands in your account like any transfer.

You can change the payment method in myEDD if the default card doesn't work for you. Good to know you can move it to direct deposit.

How long has your claim been in adjudication?

Going on five weeks. The agent confirmed EDD received all the information from my former employer so at least nothing was lost in the system.

Severance reporting can get complicated — EDD decides how it affects individual weeks. Good that you confirmed they had everything they needed at least.

Can EDD itself deny you a job or penalize you for bad credit? Like if you're trying to work for them?

That would be a job application question for EDD as an employer, totally separate from the UI benefits side. For collecting benefits there's no credit component whatsoever.

This whole thread should be pinned somewh— wait no I know you're not supposed to say that. But it's genuinely useful.

Does an overpayment mean you automatically lose future benefits?

No, they can recover it from future unemployment, disability or Paid Family Leave payments, but it doesn't cut off your benefits automatically. You can also appeal within 30 days of the notice date using the DE 1000M form or a written letter if you think the overpayment was wrong.

There's also an overpayment waiver — form DE 1446UI — if the overpayment wasn't your fault and repaying it would be a real hardship. Worth knowing about.

The 30-day appeal window on that notice is real. I've seen people miss it and lose the ability to contest it.

Someone told me I could get more than 26 weeks if I enrolled in school. Is that a thing?

California Training Benefits is real — if EDD approves a training program you can keep certifying without looking for work and there's a potential extension involved. You have to apply before your 16th week of benefits though. It's not automatic and not everyone qualifies.

That's good to know even if I hope to be working again way before 26 weeks.

Oh I did not know that at all. So I should elect the 10 percent withholding when I certify to avoid a tax bill?

That's a personal call but yeah, withholding avoids the surprise. EDD sends a 1099G each January showing what you received. It's also in UI Online under Payments.

The 1099G trips up so many people. First year I was on benefits I didn't withhold anything and owed at tax time. 10 percent federal withholding from the start is the move if you want to stay clean with the IRS.

Can you change the withholding election mid-claim or is it set when you first file?

Good to know you can still recover if you miss it. I'll be extra careful to check the actual notice, not just what I wrote down.

The interviewer phones at the time on your DE 4800, so keep your phone available and don't let it go to voicemail if an unknown number calls at that time.

I saved a photo of my DE 4800 to my phone so I had the exact time on me everywhere. Overkill maybe but I wasn't going to miss it.

This is exactly what I needed to hear. I've already waited too long. Filing right now.

Even tonight works. The Sunday start date means however this week goes, next week is in play. Don't wait until Monday.

Claimyr also helped me get through to EDD when I had a question about reopening a claim after going back to work temporarily and then getting laid off again. The agent confirmed I could reopen my existing claim through UI Online since the benefit year was still open, rather than filing a brand new one.

Oh that's a scenario I hadn't thought about. Good to know reopening is an option if I land a short-term gig.