Job Loss and Your Credit ScorePosted on January 15, 2010

The economy is still in the recovery process and there is still a lot of unemployment. Many experts recommend that you have several months of earnings saved as a safety net in case of illness or job loss. That is easier said than done.

If you are in between jobs, you may need to access lines of credit to pay your bills. Unemployment benefits are often not enough to cover your expenses, even when you make efforts to spend less. It is important that those people who face possible job loss know their credit scores and make sure their credit report is in good shape.

Why, you may ask?

These days it is increasingly difficult to get credit without a good credit score and those who are unemployed can’t afford the high interest rates given to those with bad credit. The good news is that filing for unemployment does not adversely affect your credit score, but the bad news is that being unemployed can make it even more difficult to get new credit, so you need to be prepared.

It is really important to think and plan ahead as much as you can. Your personal credit is one area where you can take a proactive approach. The first step is to get a free credit report and look for any mistakes or negative items. If you see things that need to be fixed, call Trinity Credit Services for your Free Credit Report Consultation.

When you are actively seeking employment, it also makes sense to take a look at your credit report. Many employers will ask to check your credit report before they will offer employment. As much as 80% of all credit reports contain mistakes, and it is up to you to make sure the information on the report is as accurate as possible. The last thing you want is to be turned down by a potential employer because mistakes on your credit report.