 TITLE: Does Being Unemployed Hurt Your Credit Scores? CONTENT: Indirect Impacts of Unemployment\n--------------------------------\nThough being unemployed or collecting unemployment benefits will not directly impact your credit scores, not having a job could bring your credit down in other ways. When you lose your income, it could become difficult to pay all your bills on time and in full, which could result in missed or late payments.\nAdditionally, a loss of income could drive you to rely on credit cards more than usual, which can spike your credit utilization ratio. Your credit utilization ratio compares the total of your revolving account balances (credit cards and lines of credit) with the total of all your credit limits. As your ratio climbs, so, too, does its impact on your credit scores. To determine your utilization ratio, divide your total account balances by your total credit limits. Always try to keep your utilization under 30% to avoid hurting your credit scores.\nThese two factors—credit utilization and payment history—are the most important aspects of your credit scores, so any changes in these areas could be reflected in your scores. The good news? Negative impacts can be temporary, and your credit can recover once your utilization ratio drops again and late or missed payments age and eventually drop off your report entirely. END