If you’re worried that filing for unemployment benefits will affect your credit score, don’t be — this income isn’t reported to credit bureaus. Job loss, however, could lead to missed payments or increased credit card use, both of which can hurt your credit score. See which factors determine your score and learn how to protect your credit until you’re back on your feet.
Generally, lenders check your credit score when you apply for a credit card or a loan. This number determines if you can borrow money and how much. It also affects your interest rates and your repayment terms. In addition to your credit score, lenders usually look at credit history, income and other factors when determining how much someone can borrow and what interest rates you may qualify for.
VantageScore® and FICO®, two of the most common credit scoring systems, generally rate consumers between 300 to 850. The higher the score, the better. There are several factors that go into calculating your credit score; the factors vary by the credit-scoring system.
