Does collecting unemployment affect your credit score with NYS Department of Labor benefits?
I've been on unemployment for about 2 months now and just realized I should probably check my credit report. Does anyone know if collecting UI benefits from NYS Department of Labor shows up on your credit or affects your score in any way? I'm worried because I had to use my credit cards more than usual while waiting for my first payment to come through. Also concerned about when I eventually have to pay back that overpayment notice I got last week - will that hurt my credit if I can't pay it right away?
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Aisha Jackson
No, collecting regular unemployment benefits does not appear on your credit report or affect your credit score at all. NYS Department of Labor doesn't report UI payments to credit bureaus. However, if you have an overpayment that goes to collections after you ignore it for months, THAT could potentially affect your credit. Make sure to address the overpayment notice - you can appeal it or set up a payment plan.
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Adrian Connor
•That's a relief about the benefits themselves! Do you know how long I have to respond to the overpayment notice before it becomes a problem?
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Nia Jackson
Unemployment benefits themselves don't affect your credit score at all. The payments you receive from NYS Department of Labor aren't reported to credit bureaus - they're government benefits, not loans or credit accounts. Your weekly claims won't show up anywhere on your credit report.
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Luca Romano
•That's a relief! I was worried because I saw something about overpayments and thought maybe that would be like a debt.
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Ryder Everingham
same worry here! been checking credit karma obsessively since i started getting benefits lol. good to know it doesn't show up
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Mateo Hernandez
However, if you do get an overpayment notice and DON'T pay it back, that's when it could potentially affect your credit. NYS Department of Labor can send unpaid overpayments to collections after a certain period. But just receiving regular UI benefits? No impact whatsoever on credit.
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CosmicCruiser
•How long do they usually give you to pay back an overpayment before sending to collections?
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Mateo Hernandez
•Usually they'll work with you on a payment plan first. It's not like they immediately send it to collections. You'll get multiple notices and opportunities to appeal or arrange payments.
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Aisha Khan
been collecting for 3 months and my credit score actually went UP because I was able to keep paying my bills on time with the unemployment money lol
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Lilly Curtis
The overpayment is the bigger concern here. NYS Department of Labor overpayments don't automatically go on your credit, but if they refer it to the state's collection agency after you fail to respond or make arrangements, then it could impact your credit. You typically have 30 days from the notice date to file an appeal or contact them about payment options. I had a similar situation and used a service called Claimyr (claimyr.com) to actually get through to someone at NYS Department of Labor to discuss my options - their video demo at https://youtu.be/qyftW-mnTNI shows how it works. Way easier than trying to call yourself.
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Leo Simmons
•Wait, so even if you can't afford to pay back the overpayment right away, they'll work with you on a payment plan? I've been stressed about this exact thing.
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Lilly Curtis
•Yes, they usually offer payment plans if you contact them proactively. Don't just ignore it though - that's when it becomes a real problem.
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Lindsey Fry
I've been collecting for 6 months and my credit score actually went UP because I was paying my bills on time with the unemployment money instead of missing payments like I was afraid I'd have to do. The benefits themselves definitely don't hurt your credit.
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Ethan Taylor
I had a similar worry when I first filed. The whole process seemed scary and I thought everything would be tracked. But like others said, it's just government assistance. The only way it could hurt your credit is if you somehow owe money back and refuse to pay it. Just make sure you're honest on your weekly claims about any work you do.
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Luca Romano
•Yeah I've been super careful about reporting any part-time work. Don't want any problems with NYS Department of Labor later.
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Saleem Vaziri
Just want to add that while UI benefits don't affect credit directly, if you're using more credit cards to supplement your income, make sure you're still making at least minimum payments. That WILL affect your credit score. Also, some lenders might ask about your employment status when you apply for new credit, so being unemployed could affect approval for new accounts even if your score is fine.
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Adrian Connor
•Good point about the credit card usage. I've been trying to be careful but definitely using them more than before unemployment.
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Yuki Ito
If you're having trouble reaching NYS Department of Labor agents to ask questions about your claim or overpayments, I found this service called Claimyr that helps you get through to them. They have a website at claimyr.com and there's even a video demo at https://youtu.be/qyftW-mnTNI showing how it works. Saved me hours of calling and getting busy signals when I had questions about my adjudication.
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CosmicCruiser
•Interesting, never heard of that. Does it actually work or is it just another thing charging money for something you can do yourself?
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Yuki Ito
•It worked for me when I couldn't get through on my own after trying for days. Sometimes you just need to talk to an actual person at NYS Department of Labor and this made it possible.
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Kayla Morgan
ugh the system is so confusing, why don't they just tell you this stuff upfront?? spent weeks worrying about nothing
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Sean Doyle
I totally get the worry about credit impact! I was in the same boat when I first started collecting benefits. Just wanted to add that if you're concerned about that overpayment notice, don't panic - you have options. You can appeal it if you think it's incorrect, or contact NYS Department of Labor to set up a payment plan if you do owe money. The key is responding promptly rather than ignoring it. I had to deal with something similar and they were actually pretty reasonable about working out a manageable payment schedule. Your regular UI benefits definitely won't hurt your credit though - that's just government assistance helping you get back on your feet!
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