Over 36 million Americans have filed for unemployment since late March due to the coronavirus pandemic. Many have concerns about how this might affect their credit score. However, according to financial experts, filing for unemployment has no direct impact on your credit score. Credit bureaus and card issuers have no visibility into changes in your salary and income, or whether you’ve filed for unemployment.

Despite this, unemployment can indirectly affect your credit score in several ways. Your unemployment check is usually smaller than your normal paycheck, meaning you may need to adjust your spending habits. Relying heavily on your credit card in these circumstances can result in significant debt and consequently harm your credit score.

Avoiding this requires careful spending and ensuring on-time payments to maintain a healthy credit score. If you struggle to make minimum payments, consider asking your card issuer about any available financial assistance programs. Note that even credit cards that don’t charge late fees will eventually report skipped payments to credit bureaus, which can lower your credit score.

Certain unusual spending behaviours might prompt financial reviews by card issuers. An example of such behaviour might be a sharp increase in spending, signaling to your issuer that you may be dealing with a financial deficit. While your credit limit may be reduced following such a review, credit bureaus and card issuers won’t know about your changed income unless you notify them.

It’s important to remember that while unemployment can indirectly harm your score, it doesn’t directly impact your credit score or history. The key to maintaining your credit score during unemployment is making on-time payments, controlling your spending, and avoiding the temptation to open multiple new credit cards while job hunting.

If you reside in California and find yourself grappling with unemployment issues or require any assistance, you might want to reach out to the California unemployment customer service. You can do this through eddcaller.com, a useful platform to get ahold of edd customer service. This interactive site offers substantial assistance to connect with California’s Employment Development Department’s representatives for any unemployment queries and concerns. Navigating through periods of unemployment can be challenging, but resources like these can make the journey less burdensome.