I'm curious because I was told that it does by one person and that it doesn't by another.
2007-01-21 04:16:57 · 8 answers · asked by Melody 1 in Business & Finance ➔ Credit
Thanks for the responses.
I'm definitely not looking to get more credit. My interest in the issue was bought on by a recent decrease in my credit score which I didn't understand but I now believe it's because two of my credit cards have had increases within the last two months.
2007-01-21 04:37:51 · update #1
It does not affect your credit score!!
Regardless of your credit score ....you must show the means to be able to pay for whatever you may be borrowing for.
It's called INCOME.
There are two major factors for being rejected for loans & things:
(a) insufficient income
(b) bad credit
Either of them alone will get you denied of credit.
If you have both factors.....Creditors will take it as an insult to even waste their time and apply.
2007-01-21 04:28:44 · answer #1 · answered by Anonymous · 0⤊ 1⤋
I don't believe that unemployment, at least for a short period of time, would affect your credit score. It would affect your score if you do not pay your bills on time or take on additional debt, such as charging essentials to your credit cards.
If you have increased the amounts on your current cards and the total owed is at, above or near 50% of the credit line, then yes, that would be a negative. Also, if you do not pay the minimum or above each month, that also affects your score.
Any payment that is late is considered a negative. If you have to be late on anything due to unemployment, best bet is to call your phone company or gas and electric companies. They usually will work out a payment plan to keep those utilities on and this won't affect your credit unless you stop paying. Don't be late on the mortgage, that is a biggie for credit.
While unemployed, only buy necessities. Buy things on sale such as groceries, etc. Cut down on all spending. Do not apply for any new credit at all as if they turn you down, that would bring your score down too.
Good luck and hopefully the job market will prosper soon.
2007-01-21 05:07:01 · answer #2 · answered by Coda2 3 · 2⤊ 0⤋
It does not affect your credit score.
But it does affect your ability to get credit.
When you apply for credit, the money lender usually requires two pay stubs, tax returns, and a call to you current employer.
If one of these turns up empty, you will get turned down for credit, and THAT will lower your credit score.
2007-01-21 04:25:48 · answer #3 · answered by ppp_now 3 · 2⤊ 0⤋
It doesn't lower your credit score, but it does hurt your ability to get credit, because you have no income to pay it off.
If you lost your job, and have balance protection on your credit card, they can make the payments up to $10,000 if you make a claim.
2007-01-21 04:36:12 · answer #4 · answered by Anonymous · 0⤊ 0⤋
No it can not.
What would affect it is if you start to use your Credit Cards to their limit, which sometimes happens when you need to get by. However, since you are unemployeed now is not the time to start looking for new credit.
2007-01-21 04:19:40 · answer #5 · answered by OC1999 7 · 1⤊ 0⤋
No it does not hurt your credit unless you are charging up your charge cards and not paying the money on them that you owe.
2007-01-21 04:29:42 · answer #6 · answered by Medical and Business Information 5 · 1⤊ 0⤋
How would the agencies even know that your currently not employed? It has no affect at all on your score.
2007-01-21 04:20:30 · answer #7 · answered by Anonymous · 0⤊ 1⤋
No, it does not
2007-01-21 06:10:56 · answer #8 · answered by Sky Has No Limit 2 · 0⤊ 0⤋