Does unemployment show up on a credit check when applying for jobs or loans?
I've been collecting unemployment benefits from NYS Department of Labor for about 2 months now after getting laid off from my retail job. I'm starting to apply for new positions and some employers are asking for credit checks as part of their background screening. I'm also thinking about applying for a car loan soon. Will my unemployment benefits show up on my credit report? I'm worried potential employers might see this and think negatively about it, or that it might hurt my credit score somehow. Has anyone dealt with this before?
11 comments
Join the conversation
Zara Ahmed
No, unemployment benefits from NYS Department of Labor do not appear on your credit report at all. Credit reports only show your credit accounts, payment history, and debt information - not government benefit programs. Unemployment is not considered income that affects your credit score either positively or negatively. However, if you miss payments on existing credit accounts while unemployed, those missed payments would show up on your credit report.
0 coins
Sean O'Donnell
•That's such a relief! I was really worried about this affecting my job search. Thanks for clarifying that.
0 coins
StarStrider
been on unemployment twice and never had any issues with credit checks for jobs or loans. employers can't even legally ask about unemployment status in most cases during interviews
0 coins
Luca Esposito
The only way unemployment could indirectly affect your credit is if you fall behind on credit card payments, loans, or other bills while receiving benefits. But the NYS Department of Labor benefits themselves are completely separate from credit reporting. I actually got approved for a mortgage while on unemployment because I could show the benefit income as temporary income to the lender.
0 coins
Nia Thompson
•Wait, can you actually use unemployment benefits as income for loan applications? I thought lenders wouldn't accept that.
0 coins
Luca Esposito
•Some lenders will count it as temporary income, but you'll need documentation from NYS Department of Labor showing your benefit amount and remaining weeks. It varies by lender though.
0 coins
Mateo Rodriguez
If you're having trouble reaching NYS Department of Labor to get documentation for anything, I found this service called Claimyr at claimyr.com that helped me get through to an actual agent when I couldn't get through the phone lines. They have a video demo at https://youtu.be/qyftW-mnTNI showing how it works. Was really helpful when I needed to verify my benefit amounts for a rental application.
0 coins
Sean O'Donnell
•Thanks, I'll check that out if I need any documentation from them. Good to know there are options when their phone system is so backed up.
0 coins
Aisha Abdullah
Just wanted to add that you should still be honest if an employer directly asks about your current employment status during an interview. But they can't discriminate against you for being unemployed, and it definitely won't show up on any background check or credit report they run.
0 coins
Paolo Conti
I went through this exact same worry when I was on unemployment last year! Can confirm what others are saying - it absolutely does not show up on credit reports. I was so paranoid about it that I actually pulled my own credit report from all three bureaus just to double-check, and there was zero mention of my NYS unemployment benefits anywhere. The only thing that could potentially impact your credit while unemployed is if you miss payments on existing debts, but the unemployment itself is completely invisible to credit agencies. Good luck with your job search!
0 coins
James Johnson
•That's exactly what I needed to hear! I was considering pulling my own credit report too just to be absolutely sure. It's reassuring to know someone else had the same concern and actually verified it. Really appreciate you sharing your experience - definitely helps put my mind at ease about the job applications coming up.
0 coins