Being unemployed will not hurt scores if bills continue to be paid on time


Dear Experian,

Will a period of unemployment hurt my credit scores?



Dear JNO,

Unemployment in and of itself will not affect your credit scores. The financial impact of unemployment may have an indirect impact, though.

While the name of your employer at the time you applied for credit may be reported, employer listings are not part of a credit score. Your credit report does not indicate whether you are currently employed or unemployed.

If, as a result of being unemployed you become unable to pay your bills, the missed payment history will impact credit scores. It is a good idea to contact your creditors directly to explain your situation before you begin missing payments. They may to work with you to minimize any effect on your accounts and your credit history.

If you have the means to continue paying your bills while unemployed, your credit scores should not suffer. However, you may have trouble qualifying for new or additional credit without being able to demonstrate a current income source.

While Experian does not keep income information, lenders typically request that information during the application process and use it in determining whether or not to extend credit.

Thanks for asking.

The “Ask Experian” team

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