Does Gambling Affect Credit Score?
The question “Does gambling affects credit score?” is quite complicated, so it’s important to be up-to-date with the topic if you think it may affect you. In this in-depth guide, we’ve covered the fundamentals of credit scores and gambling finance to ensure your betting doesn’t have an impact on your ability to get a loan.
Can Gambling Effect Your Credit Score?
In the most simple terms, we can start this article by saying that gambling technically won’t affect your credit score. However, this is not to say that your gambling activity won’t have any impact. To best explain this to you, we’ve started by looking at what a credit score is and what it means.
We’ve then continued by looking at whether your gambling spending could influence your eligibility to receive a loan will be assessed. You will also learn some steps you can take to keep your gambling from having an impact, before looking at the topic of gambling debts.
What is a Credit Score?
A credit score rating is the result of a test that considers how someone has handled credit in the past. The better a person’s score, the more likely they are to be accepted for a loan or credit. It also influences how much a person may be able to receive.
A credit score takes into account a number of important details. These include someone’s credit commitments in the past six years, whether the person has been bankrupt and the reliability of the person to repay credit and fees. Late or missed payments of fines will also affect this.
If you have a good credit score, you may find it easy to receive a loan and a mortgage, or receive a credit card with more favourable rates and fees. If you have a poor credit score, you may be rejected outright, or you may need to settle for loans with higher interest rates.
It is therefore always best to strive for a high credit score, no matter whether or not you intend to get a loan or mortgage in the near future. So while your gambling at an online casino will not be considered as a part of your credit check, your financial relationship to gambling could.
What is Shown on a Credit Report?
Different credit reference agencies have their own systems of displaying your credit rating. However, they are all similar in that they use three numbers to summarise your credit rating. These numbers will be displayed on a credit report, and financial lenders will be able to interpret them accurately.
This is because each agency will likely declare your credit to be Fair, Good or Excellent. Your credit report will also show which type of credit accounts are opened when they were opened, the limits or loan amounts, the balances and your payment history. Whether you or a creditor has checked your report will also be visible.
How to Check Your Credit Score
It is free to check your credit score in the UK, and while how often you check will be visible on the report, it won’t impact your score. Agencies such as Experian and Equifax allow you to easily check online. To begin, you’ll need to first register with an account for your chosen service.
You will need to provide your name, recent addresses, date of birth and bank details or national insurance number. To verify your identity, you may need to answer a question related to your financial history. You can then request to receive your credit report or score, which should be ready within moments.
Is Gambling Considered at All?
While your gambling activity won’t show up in your credit report, there are ways that it can directly impact your ability to get a loan. This is because some money-lenders may wish to see your bank statements for an application, and excessive spending of any sort may raise red flags.
For example, if you make frequent large transactions to your gambling account without money coming in, it may appear as if you have trouble with responsible spending. Money lenders will want to see that you can make repayments on time, so frequent dips into the red won’t be looked on favourably.
This will be even more relevant if you have had problem gambling habits in the recent past. Some problem gamblers may regularly chase losses and stop prioritising credit repayments over making gambling transactions. This will be viewed as an unwillingness to respect your financial obligations.
In more extreme cases, players may have taken out loans to cover their costs of gambling. This is never a good idea, and you should always consider gambling as a recreational activity to be enjoyed with disposable income. Your gambling budget should align with the level of your financial comfortability.
Dos and Don’ts of Gambling and Credit
There are steps that you can take to ensure that your gambling activity never has a major impact on your ability to get a loan or mortgage. Conversely, there are behaviours you should avoid at all costs if you’re in the process of applying for a loan. We’ve covered the dos and don’t of gambling and credit below.
What to Do
The first thing you should always do, whether it has anything to do with your credit score or not, is gamble within your means. Before you play, set a gambling budget and loss limit, and if you have trouble sticking to this, use the deposit limitation tools provided in your customer account.
If you’re a land-based gambler, use cash when possible so there is no record on your bank account. You may also benefit from setting a monthly online gambling budget, which you can withdraw in cash and put on a prepaid cash card to fund your account.
It may also help to frequently make withdrawals from your account wallet back into your bank rather than sit on your wins. This is made easier when playing at online casinos with fast withdrawals and can help with budgeting, and also shows that you’re receiving some profits. If you’re struggling with gambling addiction, seek professional help or consider self-exclusion.
What Not to Do
Whether it’s from a bank or a friend, never borrow money to fund your gambling habits. Get used to the idea that if you can’t afford it, you don’t play. While credit cards are banned from funding gambling accounts, some may attempt to find a loophole to access credit card funds for gambling.
Never attempt to do this, as it is likely to still indicate irresponsible or unaccountable spending. If you’re a casual gambler and it won’t be any trouble, avoid gambling while you’re applying for a loan or credit. It’s also wise to never apply for a joint loan with someone who irresponsibly gambles or has a gambling addiction.
Don’t miss your monthly payments on your outstanding loans. If you do this, it will show that you are a reliable lender and greatly improve your credit score. It’s also not a good idea to remain willfully ignorant. Check your credit score often and act accordingly.
Gambling Debt and Problem Gambling
If you can recognise that you may have a problematic relationship with gambling, it’s a good idea to get support. Whether it’s through counselling, a gamblers anonymous group, online forums or self-exclusion, there are plenty of reliable tools at your fingertips to help you at all stages.
Two great British problem gambling organisations are GamCare and Gambling Therapy. These organisations can also provide helpful and judgment-free advice on how to address gambling debts, including information on how to budget and improve your credit rating.
There are a number of methods that can be extremely effective at tackling gambling debt, whether it’s by consolidating your debts or committing to payback schemes. These problems may seem overwhelming, but there are experts who are trained to address these issues so you don’t have to do it alone.
Frequently Asked Questions
If you still have questions about whether gambling affect credit scores, keep reading. Below, we have provided responses to some commonly asked questions about this topic so that you don’t have to read the whole article. If you’re looking for more detailed answers, use the links in each to jump up to the relevant sections.
1️⃣ What is a credit score?
The rating that is applied to you based on your previous credit history is a credit score. This takes into account your previous loans, credit cards and mortgages, and most importantly, your ability to make repayments. The better your credit score, the higher the loans you may receive.
2️⃣ How do I check my credit score?
You can check your credit score by using a credit report agency. It is completely free to request a credit score or credit report. It is helpful to check this regularly so you can take action to improve your rating before you apply for a loan, credit card or mortgage.
3️⃣ Is gambling considered on my credit score?
While gambling isn’t technically considered in your credit rating, it can still have an indirect impact. This is because money lenders may consider your transaction history in their assessments, and frequent high deposits into gambling accounts may be flagged as risky or irresponsible behaviour.
4️⃣ What should I do to ensure gambling doesn’t affect my credit score?
There are several things to do and not do to have a positive impact on your credit score. You should always gamble within your means and when possible, use cash to fund your gambling. Conversely, never borrow money for gambling and don’t attempt to find ways to use your credit card to make gambling payments.
5️⃣ What should I do if I have gambling debts?
If you are struggling with gambling debt, you don’t have to do it alone. You can seek assistance from problem gambling resources, who may be able to help you with your current spending and refer you to a debt consolidation service that can help. There are many experts out there who are experts with this situation, and many are free.