Does gambling affect your credit score?

Jun 29, 2022

What is a credit rating?

Before delving into whether gambling affects one’s credit score, it is prudent to gain an understanding of what a credit score entails. It is essential to maintain a healthy credit score as it has far-reaching implications, ranging from obtaining a mobile phone contract to securing home financing.

Your credit report consists of data pertaining to your financial background and behaviour, allowing lenders to assess if you manage your capital competently; for instance, whether you take on too much debt or remit payments in a timely manner. This data is elucidated in your credit score, essentially granting lenders piece of mind when considering lending money.


How does betting impinge upon one’s credit score?

The succinct response is that it does not. Nevertheless, there may exist an indirect impact. Credit scores and reports are based on your habits when dealing with debt; hence, lenders will be keen to gain a deeper understanding of the borrower’s fiscal behaviour prior to approving finance. Although little trace of gambling will appear in the report, lenders will request bank statements, which may reveal frequent gambling transactions. If such activities are rampant and one is forced to access loans or overdrafts, lenders may perceive this behaviour as indicative of financial mismanagement and hence be reluctant to approve finance.

Ultimately, gambling in moderation is not thought of as a crime. Nevertheless, when accessing credit funds, lenders may be cautious if there is evidence of profligate spending on gambling. Therefore, it is important to appraise the potential repercussions of frequent gambling when intending to undertake significant borrowing. In such cases, it may be prudent to desist from wagering in order to avoid any negative judgements that could hinder one’s financial ambitions.