does your credit score take a hit when you get fired from a job or when you apply for unemployment?
what is the case for each scenario?
if it does affect credit, is it only while you are on the unemployment (or unemployed due to termination) and then your credit goes back to what it was before once you get a job OR is this something that would stay in your credit past and always negatively affect your credit score?
OR would one’s ability to obtain loans to purchase property be affected in another way other than credit score in either of the above scenarios?
only if you don’t pay your bills! Your job has nothing to do with your score -
Losing your job has no effect on your credit.
Your credit is based off of your ability to make your payments on time and the amount of time the accounts have been open.
Not having a job will obviously impact your ability to meet your obligations. Lender’s tend to prefer that you have some type of verifiable income
Without verifiable employment, you’ll need to get a True No Doc that doesn’t require that you have one. This will lower your Max LTV by 5%, so if you don’t have 5% more to put down, you won’t be able to buy. Your credit score drives what LTV you can get…for example, at 680 you can get 100% financing, but on a no doc, just 95% with 5% down. The minute you have a new job in the same line of work brings you right back to 100% though. Don’t let too much time go by though…big gaps of employment aren’t good. Good luck! Sandra
In my state, New Jersey if you are on unemployment for more than 6 months it will decrease your score by 20 points.
How does that happen?
Does the State of NJ report to the credit agencies?
Most state do not take the time nor have the time to do that same with unemployment?!!!
I Live in Laurel Springs NJ. and was laid off from my previous employer and was out of work for over a year and on unemployment and that was reported by the state. When I re did my mortgage I was told my credit score dropped 20pts becuase of the length of my unemployment. The bank said once you pass 6 months your drop down 20pts. My previous score was 800 so I was quiet disturbed when I heard this, as many prople are laid off each day at no fault of their own and to have it count againest your credit even when your paying your bills is just unfair.
Most of this is unheard of and does not happen very often and I guess in your case you are one of the unlucky ones that go stung by it your state must be on top of things because most states and unemployement do not have time to mess with that kind of reporting on every one and with every reporting agency