Does Being Unemployed Hurt Your Credit Scores?

Unemployment does not directly affect your credit scores.

Your credit report does not show whether you're employed or not. It only shows credit and debt-related information. The impact of unemployment could be reflected in your credit report if you are unable to pay your debts as a result of being unemployed.

The fact that you are currently unemployed will not become part of your credit history, nor will filing for unemployment. However, lenders typically request income and employment information when you apply for credit, so being unemployed could affect lending decisions.

In the personal information section in a credit report, current or past employers may be listed, but it isn't meant to be a full employment history. It is simply a list of employers you have included in your applications for credit that were subsequently reported to Experian by your lenders. Because not all lenders report this information and it is typically only requested when you apply for credit, the list of employers may not be comprehensive.

There may be gaps in your employment list depending on when you last applied for credit, but this has no effect on your credit history.

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Scoped on: 8/09/2018