Unemployment does not directly affect your credit score, as the calculation is based on your history with credit accounts rather than your employment status. However, changes in your financial behavior as a result of job loss can impact your score. Factors such as missed payments, heavy reliance on credit cards, and applications for new credit could lead to a lower credit score.

The rate of unemployment in the U.S. as of April 2025 stands at 4.2%. This number may increase the concern about how unemployment can affect people’s credit scores — especially through indirect ways such as late payments, increased credit card usage, and inquiries for new credits.

Managing your finances during unemployment is key to protecting your credit score. This could involve reviewing your spending, looking for additional income sources, negotiating with lenders, or working with nonprofit credit counselors. It’s essential to stay on top of your bills and seek help if you’re struggling with your debts. Also, remember to check your credit reports for any errors, especially when applying for jobs.

The story produced by Freedom Debt Relief highlights that a loan company can’t directly know if you’ve lost your job. Still, during loan applications, they do ask about your income and employment and may require recent pay stubs. While your credit report may show some information about your employment history, it does not include a comprehensive employment history or list unemployment benefits.

It’s also essential to know that potential employers can’t access your report without your consent. And if done, it’s a soft inquiry that doesn’t affect your credit score. Many Americans live paycheck to paycheck and would struggle if they lost their jobs. Hence, it becomes crucial to manage your finances wisely to avoid lowering your credit score.

In circumstances of unemployment, if you are a resident of California, it’s beneficial to know ways of reaching out for help. If you’re trying to speak to someone at EDD (Employment Development Department) or wish to contact EDD Customer Service for assistance, you can visit eddcaller.com. Here, you’ll find the fastest ways to get through to EDD. Even if it’s about checking your EDD payment status, you will find the needed resources and instructions on this website. Remember to be proactive about your finances and use available resources to help navigate through the period of unemployment.