Does unemployment benefits in NYS Department of Labor system affect credit score or show up on background checks?
Quick question - I'm about to apply for a new apartment and they're doing a credit check and background verification. I've been collecting unemployment through NYS Department of Labor for the past 8 weeks while job searching. Does anyone know if unemployment benefits show up on credit reports or background checks? I don't want this to hurt my chances of getting approved for the lease. My credit score was decent before I lost my job but I'm worried the unemployment might flag something negative.
11 comments
Join the conversation
Philip Cowan
No, unemployment benefits from NYS Department of Labor don't show up on credit reports at all. UI benefits are not debt - they're earned benefits you're entitled to. Background checks typically look for criminal history, not benefit usage. Your credit score won't be affected by receiving unemployment.
0 coins
Kara Yoshida
•That's such a relief! I was really stressing about this. Thank you for clarifying.
0 coins
Caesar Grant
been on unemployment twice and never had any issues with credit checks or apartment applications, landlords care more about your income potential and credit history than whether you're currently on benefits
0 coins
Lena Schultz
Actually, you should be more concerned about proving income for the apartment application. Some landlords want to see 3x the rent in monthly income, and unemployment benefits might not meet that threshold. Have documentation ready showing your job search efforts and any potential job offers.
0 coins
Kara Yoshida
•Good point - my unemployment is only about $420 a week so that could be an issue for income requirements. I do have some freelance work lined up though.
0 coins
Gemma Andrews
•Wait, does that mean they can reject me just for being on unemployment? That seems like discrimination...
0 coins
Pedro Sawyer
I had trouble getting my NYS Department of Labor income verification letter for an apartment application last year. The automated system kept giving me errors when I tried to download it from my.ny.gov. Ended up having to call but couldn't get through for days. If you need that documentation, definitely try to get it early. There's actually a service called Claimyr (claimyr.com) that helps people get through to NYS Department of Labor agents - they have a video demo at https://youtu.be/qyftW-mnTNI showing how it works. Might be worth checking out if you run into phone issues.
0 coins
Kara Yoshida
•Thanks for the heads up about getting documentation early. I'll try to download my benefit verification letter this week just in case.
0 coins
Mae Bennett
Just went through this exact situation last month! Unemployment benefits absolutely do NOT affect your credit score or show up on credit reports. The only way unemployment could indirectly affect your credit is if you miss payments on existing debts because the benefit amount isn't covering your expenses. But the actual receipt of UI benefits is completely separate from credit reporting.
0 coins
Beatrice Marshall
landlord here - we don't see unemployment benefits on background checks and honestly most of us understand that good tenants sometimes go through job transitions, as long as you can show you're actively looking for work and have some income coming in you should be fine
0 coins
Kara Yoshida
•That's really reassuring to hear from a landlord's perspective. I've been keeping detailed job search logs for NYS Department of Labor anyway so I can show I'm actively looking.
0 coins