Question

Being unemployed impacts your credit score at all three agencies

A. True, it can have a negative impact on your credit score at all three agencies.
B. True, it can have a positive impact on your credit score at all three agencies.
C. False, unemployment does not directly impact your credit score at any of the three major credit reporting agencies.
D. True, but it only affects your credit score at one of the three agencies.
E. False, unemployment may indirectly affect your credit score but is not a direct factor considered by credit reporting agencies.

Answer 1

False, unemployment may indirectly affect your credit score but is not a direct factor considered by credit reporting agencies.

Step-by-step explanation:

The correct answer is E. False, unemployment may indirectly affect your credit score but is not a direct factor considered by credit reporting agencies.

Unemployment does not have a direct impact on your credit score at any of the three major credit reporting agencies which are Equifax, Experian, and TransUnion. These agencies primarily focus on your payment history, debt utilization, length of credit history, new credit, and credit mix when calculating your credit score. However, unemployment can indirectly affect your credit score if it leads to missed or late payments on bills and loans, high credit utilization, or other negative financial behaviors.

It is important to note that each credit reporting agency may have slightly different scoring models, so your credit score may vary slightly between them.