Does filing for unemployment hurt your credit score with Washington ESD?

No, filing for unemployment benefits through Washington ESD does not affect your credit score at all. Unemployment is an insurance program that you and your employer pay into - it's not a loan or debt. The credit bureaus don't even have access to your unemployment claim information.

Been on unemployment twice in the past 5 years and my credit score actually went up during those periods because I was managing my bills better with the steady UI payments coming in.

The only way unemployment could potentially impact your credit is if you receive an overpayment notice from Washington ESD and don't pay it back. But even then, they typically work with you on payment plans before it would ever go to collections.

I had trouble getting through to Washington ESD when I was trying to verify some information about my claim status last month. Kept getting busy signals and disconnected calls. Finally found this service called Claimyr that helps you get through to an actual agent - check out claimyr.com. They have a video demo at https://youtu.be/7DieNd3C7zQ that shows how it works. Made the whole process so much easier.

This is probably a dumb question but does the money you get from unemployment count as income on your taxes? I'm worried about that affecting my credit somehow too.

I work in banking and can confirm that unemployment benefits don't show up on credit reports. We see things like loans, credit cards, mortgages, etc. - not government benefits. The only exception would be if you defaulted on an overpayment that went to collections, but that's rare.

My biggest concern was whether potential employers could see that I filed for unemployment, but that's not related to credit reports anyway. Turns out most employers can't access that information unless you tell them.

Just to add my experience - I've been on UI benefits for 3 months now and checked my credit score last week. No changes at all, still the same as before I filed. Don't let credit worries stop you from getting the help you're entitled to.

One more thing to consider - if you're worried about credit, being unemployed without any income is much worse for your credit than being unemployed with UI benefits coming in. At least with unemployment payments you can stay current on your bills.

I remember being paranoid about this same thing when I got laid off in 2023. Spent way too much time worrying about credit impact instead of just filing my claim. Don't make my mistake - there's literally no downside credit-wise.

Just wanted to follow up on that Claimyr thing I mentioned earlier - used them again this week to check on my weekly claim certification and it worked perfectly. If anyone else is having trouble reaching Washington ESD, definitely worth checking out their website.

To summarize for anyone still worried: Filing for unemployment benefits will NOT hurt your credit score. Washington ESD doesn't report to credit bureaus, there's no credit check required, and UI benefits are an insurance program you've paid into, not a loan. The only potential credit issue would be from an unpaid overpayment going to collections, which is very rare and avoidable.

wait so if I'm behind on my credit card payments but I file for unemployment, that won't make my credit score even worse?

My cousin told me that filing for unemployment shows up on background checks for jobs, is that true? Not sure if that's related to credit stuff but figured I'd ask here.

I think the confusion comes from people mixing up unemployment benefits with welfare programs. UI is totally different - you've earned these benefits through working and paying into the system.

Has anyone here ever had problems with Washington ESD claiming you were overpaid when you weren't? I keep hearing horror stories about that stuff.

this thread convinced me to stop worrying and just file already. been putting it off for 2 weeks because of credit concerns. thanks everyone

One thing to add - even though unemployment doesn't hurt your credit, having steady income from UI benefits can actually help when you're applying for apartments or other things that require income verification.

My wife was paranoid about this same thing last year. Turns out her credit score actually improved while she was on unemployment because she wasn't stressed about money and could focus on paying bills on time.

Just want to echo what everyone else said - no credit impact from filing for unemployment. I've been a loan officer for 8 years and have never seen unemployment benefits on a credit report.