Does unemployment benefits affect credit score in Washington state?

Unemployment benefits themselves don't show up on your credit report. They're not considered debt or credit activity. Your credit score won't be affected just by receiving UI benefits from Washington ESD.

The only way unemployment could indirectly affect your credit is if you have an overpayment situation with Washington ESD and they send it to collections. But regular UI benefits don't appear on credit reports at all.

I had trouble getting through to Washington ESD about a question on my claim status last month. Spent hours on hold. Finally used this service called Claimyr (claimyr.com) that actually got me connected to an agent in like 10 minutes. They have a video demo at https://youtu.be/7DieNd3C7zQ showing how it works. Saved me so much time and frustration.

been on unemployment 3 times over the years and never had credit issues from it. only problem is when your income drops and you cant pay your regular bills on time

For car loans specifically, lenders will ask about your income source. Being on unemployment might affect loan approval or terms, but that's different from credit score impact. You'll need to show your monetary determination letter from Washington ESD as proof of income.

I'm so paranoid about everything affecting my credit score these days. It's good to know unemployment benefits aren't one of those things. The whole system is confusing enough without worrying about that too.

What about when you go back to work? Do you need to report that to credit agencies or anything? I'm starting a new job next week and want to make sure I handle the transition properly.

The real credit impact comes from reduced income affecting your ability to pay bills. I had to use credit cards more when I was unemployed last year, which increased my utilization ratio and temporarily lowered my score.

One thing to remember is that unemployment benefits are taxable income. Make sure you're either having taxes withheld or setting money aside for tax time. Owing a big tax bill could indirectly affect your finances and ability to pay other bills.

I work in banking and can confirm that unemployment benefits don't appear on credit reports. We see them on loan applications when people list them as income, but they're not credit-related data. Your payment history on actual credit accounts is what matters for your score.

Just wanted to follow up on the Claimyr thing I mentioned earlier - I ended up using them again this week when I had a question about my job search requirements. Still works great for getting through to Washington ESD quickly. Really recommend it if you're having trouble reaching them.

This thread made me realize I should check my credit report to see if there's anything weird on there. Been unemployed for 6 weeks and getting paranoid about everything financial.

The stress of unemployment is bad enough without worrying about credit score impacts. At least that's one less thing to stress about based on this thread.

Anyone know if there are any other hidden ways unemployment could affect your finances? Like insurance rates or anything like that?

what about if you have to move because you cant afford rent anymore? does changing addresses hurt your credit?

I'm actually in a similar situation planning to finance a car soon while on unemployment. This thread convinced me to go ahead and apply - worst they can say is no, and at least I know the unemployment itself isn't hurting my credit score.

This has been super helpful. I was putting off checking my credit thinking unemployment might have messed it up somehow. Now I feel better about looking.

Thanks everyone for all the info. I feel much more confident about my car loan application now. This community is really helpful for navigating all the confusing parts of being unemployed.

One last thing - if anyone does end up with credit issues while unemployed, there are nonprofit credit counseling services that can help. Just wanted to mention that as a resource.

Really glad I found this thread. Was losing sleep over this credit score question. Now I can focus on job hunting instead of worrying about things that aren't even real problems.