Does gambling affect your credit score?

How can gambling impact your credit score?

Gambling on its own won’t impact your credit score, but it’s important to think about the financial outcomes of your gambling which could lead to credit report problems in the future. 

You should understand the impact gambling can have on your finances, and how it could lead to you struggling to manage bills, pay back debts and, ultimately, have problems applying for future borrowing. 

Gambling is a pastime that should be enjoyed responsibly. If you’re struggling with it, there are people out there who can help. 

What affects your credit score?

While gambling activity won’t show on your credit history, there are a few other things you should be aware of, many of which could be impacted by problems caused by gambling. 

• Your payment history
  How you’ve paid off previous debts, and whether you’ve been late or missed any scheduled payments. 

  
  

• How much credit you use
  Do you just dip into your credit occasionally, or do you have a series of maxed out credit accounts?

  
  

• How much money you owe
  Are you in debt to lots of different lenders, or is your debt manageable on a monthly basis?

  
  

• The length and mix of your credit usage
  Can you show a long history of borrowing and paying different kinds of debt back?

  
  

• The number of new credit enquiries you’ve made
  Constantly applying for new lines of credit will make lenders think other lenders are turning you down, making you seem like a risky applicant. 

  
  

How gambling could have a knock-on effect on future borrowing

Gambling might feel like a quick thrill at first, but if things get out of hand it can soon lead to serious financial implications, several of which could leave a damaging mark on your credit report. 

Unmanaged debt

The most obvious problem associated with gambling is debt. If you keep risking money on bets, and those bets don’t win you any money back, you could end up going into debt. If you can’t get out of this debt, this will negatively affect your credit score.

Missed overdraft payments

Many bank accounts offer overdraft features, but mismanaged gambling problems can cause you to max these overdrafts out without any way of paying them off. Missing minimum payments, or not making any at all, will look bad on your credit history. 

Payday loans

A payday loan can give you cash, fast, which could seem like a good way to pay off debts or afford more gambling. However, these loans often come with incredibly high interest rates and attached fees, which may well result in you getting into more debt. 

Increased use of credit cards

Gambling could lead to you using up more of your available credit, or applying for more credit cards. Using up all your credit and regularly applying for new credit will lower your credit score.

Can gambling stop you getting a mortgage?

When you’re applying for a mortgage, your mortgage provider will want to see three things: how much you earn, how much you’re committed to spending, and your credit report. 

If they can see that you’re routinely spending money on gambling, some providers may view you as a more risky applicant, as your financial situation won’t appear stable. 

However, gambling won’t always stop you from being successful in your mortgage application. Lenders will look at how often you make a bet, how much money you tend to stake and the type of bets you’re making, helping them see whether your gambling could prevent you from making monthly mortgage payments in the future. 

Can gambling stop you taking out a loan?

If you apply for a loan, the lender will want to see that you can be trusted to pay it back on time and at their required rate. To get this evidence, they will look at your credit report.

Your gambling habits won’t show on your credit history, but the impact of them could, especially if they’ve resulted in you maxing out your overdraft, taking out other lines of credit to fund them, or missing regular payments on things like mortgages, car finance or credit cards. 

If your credit report shows anything like this, your loan application could be turned down, or you could find yourself having to search for less attractive deals with much higher rates of interest. 

How gambling can damage your mental health, and what to do if it becomes a problem

Gambling can cause an instant rush of adrenaline, just like with any kind of risk. That feeling can become addictive in the same way that drugs or alcohol can. The initial act of placing a bet makes you feel good, releasing the ‘happy’ hormone, dopamine, into your brain. If your bet wins, your brain rewards you with further dopamine, making you want to do it again. 

If you won every bet you ever placed, this wouldn’t be a problem. But unfortunately, that never happens. This can lead to ‘problem gambling’, where you keep chasing that same high by making other, potentially riskier bets. Doing this can cause stress, anxiety, low self-esteem and depression, which can start the whole cycle all over again as you place more bets to make yourself feel better. 

A gambling addiction can even make other activities feel less enjoyable, even if you previously liked them. 

Finally, gambling can cause serious financial problems, which have a strong link with suicidal thoughts. If you have any thoughts about ending your own life, you should call 999 or go to A&E immediately. 

People who have pre-existing mental health conditions are more at risk of developing harmful gambling habits, as they may look to gambling as a means to make themselves feel happier, or less angry and upset. 

The good news is there are people out there to help. GamCare is a gambling support charity offering guidance, advice and therapy services to people who are struggling with, or have struggled with, gambling problems. They are a free service and can help you deal with a gambling addiction, as well as offer support with getting out of gambling debt. 

Access your credit history and score for free

You can check your credit score for free on the Boshhh Mobile app, available on iOS and Android. Just download it now and sign up to see how your score is doing.