Does gambling affect credit score?
One of the UKGC’s requirements for issuing an online casino licence is to cooperate with GamStop’s self-exclusion programme. Blockchain has been operating since 2018, helping UK players combat gambling addiction. The voluntary service allows slots, sports betting to be shut down for up to 6 months, 1 year or 5 years, depending on the player’s decision. That said, the British are worried whether GamStop will affect credit rating and whether there will be any problems in getting credit in the future. Below we will try to answer this question so that users are in no doubt.
What does credit rating mean?
The credit rating function is necessary for banks to understand whether a customer will be able to pay back a loan on time. This assessment concept is used in many countries around the world. The credit rating itself shows the financial stability of the person, it determines the interest rate in the contract. For example, if the rating is low, the bank will agree on a loan with a high interest rate, but if the indicator is high, the borrower will get a loan on favourable terms.
Information on bill payments, credit in the UK is received by the 3 credit bureaus Experian, Equifax and CallCredit (TransUnion). However, different banks use estimates from different bureaus. This must be taken into account when applying for credit.
Does betting affect credit score?
Everyone is free to use their money as they see fit so there should be no question as to whether gambling affects your credit score. But many banks and credit companies do not accept gambling. You should be prepared for employees to check account transfers to ascertain whether deposits have been paid. As for GamStop, enrolling in this programme will not affect your credit rating.
GamStop’s website states that they can contact a credit reference agency. This is required to verify your identity. The verification is in the “soft” category, it will not be reflected in the client’s file, only the personal details are checked. Verification will not affect the chances of getting a credit card, mortgage or car loan. For many banks the presence of a GamStop record only raises the player’s rating and serves to confirm that the person has decided to give up gambling.
What affects my credit rating?
Above, we have dealt with whether betting accounts affect credit rating, so let’s find out which actions affect credit rating in general. When banks assess a borrower, they look at certain financial behaviours with caution. Shopping for antiques, regular donations to a charity, other regular payments from income can also be reasons to reject a loan.
Credit broker Experian decided to look into the main factors that lower a person’s credit rating:
- Frequent opening of bank accounts.
- Using the maximum credit card limit.
- Regularly applying for loans, with the bank customer making multiple applications at once.
- Overdue payments on other loans.
- Bankruptcy, presence of personal data in the Individual Insolvency Register (IIR).
- Lack of credit history.
Obviously, if you apply to a bank for a loan, they will check the information in Experian, Equifax and CallCredit (TransUnion). While you are worried about betting affecting the mortgage GamStop, many gamblers are confronted by examiners who ask if they have made a deposit at an online casino in the past. Such questions are usually asked by credit examiners when customers are trying to open an overdraft to a card or current account. Don’t be afraid of such questions, just be prepared for them.
UK players are allowed to use their funds, spend them as they wish. But you should be prepared for banks to question the use of a bank card to make a deposit in a UKGC casino or on a foreign gambling site. If the statement shows large transactions, this will affect the interest rate.