So you’ve just been handed your pink slip; your all-purpose admission ticket to Unemployment Land.  Don’t feel too bad – over 10% of US workers (or about 15 million people) are in the same place, so at least you’re in good company.  Unfortunately, you’ll need more than a parking ticket stub to make your way back to the land of the rising salary.

Unemployment is a costly affair.  In addition to your regular bills (food, auto, credit cards, etc.), simply looking for a job can add even more to your expenses.  Whether you’re buying a new suit for that interview you just landed, putting gas in the car to drive an hour down the freeway to get there, or just registered for a class to teach you how to do the job, your expenses are about to go up as your available finances start to head south.  And while you may be focused on pinching every penny you can, potential employers are more and more focused on how your credit looks – both before your job loss and now.  Keeping your credit limit as high as possible can be the key to bringing you one step closer to that new job.

The first, and really most obvious, step in maintaining a good credit score is to keep paying your balances and debts down in order to keep your high credit rating – especially now that you’re unemployed, as missteps like late payments can be judged more harshly.  You’ll also want to pay more than just the minimum balance on your accounts, as most card companies hold people who only pay the bare minimum in slightly better regard than someone who’s late or misses payments. 

At the same time, you’ll want to keep your credit cards open.  This may end up hurting your credit rating in the long run, but it can certainly help you when the bills come in.

Another step to consider may sound like crazy talk, but could prove useful as you’re heading into an unemployment fallout shelter: apply for more credit.  Whether you’re already unemployed or know that you are about to be, asking your current providers to raise your credit limits (seeking new applications dents your rating) to help you stretch that dollar out for all it’s worth. 

You can also weigh your cards’ rewards options.  If hotel and air travel points are a must, you’ll want to use those cards more frequently, whereas if cash-back rewards are more of a necessity, you’ll want to stick with those cards.  You can also look into off-credit debt, such as your home equity loan.  Providers find these less risky, so look into these for help as well.

Finally, knowing when your card companies report to the credit bureaus can help keep your budget flexible.  Most companies only report to the bureaus once a month; knowing when that is can help you pay down your accounts by the reporting date and in turn, keep higher balances.  Follow these tips and when your next job rolls around, and you get to leave the unhappiest place on earth, you won’t be too much worse for the wear.

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