Does claiming unemployment affect credit score or credit report?
I'm about to file for unemployment benefits with NYS Department of Labor after being laid off last week. My credit score is finally in a good place after years of work, and I'm worried that claiming unemployment might hurt it somehow. Does NYS Department of Labor report unemployment claims to credit bureaus? Will having unemployment income instead of regular wages affect my credit rating? I've heard mixed things and want to know before I submit my claim.
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Carmen Ortiz
No, claiming unemployment benefits absolutely does not affect your credit score. NYS Department of Labor doesn't report to credit bureaus at all - unemployment benefits are considered income, not debt. Your credit report tracks borrowing and payment history, not income sources. The only way unemployment could indirectly affect credit is if you miss payments on existing debts because the benefit amount is less than your previous salary.
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Yuki Tanaka
•Thank you! That's exactly what I needed to hear. I was so worried about messing up my credit after working so hard to improve it.
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MidnightRider
been on unemployment twice and never saw it show up on credit karma or any credit monitoring. youre fine to file
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Andre Laurent
The previous responses are correct. Unemployment benefits are treated like any other income source when it comes to credit applications. However, some lenders might ask about employment status when you apply for new credit, and being unemployed (regardless of benefits) could affect approval odds for new loans or credit cards. But the act of filing a UI claim itself? Zero impact on your credit score.
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Zoe Papadopoulos
•This is important to know! So if I apply for a car loan while on unemployment, they'll see that I have benefit income but it won't hurt my credit score itself?
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Andre Laurent
•Exactly. They'll verify your income (including unemployment benefits) but your credit score calculation isn't affected by the source of that income.
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Jamal Washington
I had similar concerns when I filed last year. What really helped was using Claimyr (claimyr.com) to get through to an actual NYS Department of Labor agent who confirmed this for me over the phone. They have a video demo at https://youtu.be/qyftW-mnTNI that shows how it works. Made it so much easier than trying to call the regular number and getting disconnected constantly.
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Yuki Tanaka
•Thanks for sharing this! I might need to contact them if I have issues with my claim processing.
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Mei Wong
Just want to add that you should still try to make all your regular payments on time even while on unemployment. The benefit amount is usually less than your full salary, so budget carefully to avoid late payments that WOULD hurt your credit.
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