How gambling affects your chances of borrowing money

As the European Championship continues to be in full swing, pundits also continue to worry about the increase in play.

Soccer tournaments are known to attract an increase in betting and gaming, with the National Gambling Helpline reporting a 5% increase in calls during the 2018 World Cup competition.

Especially when it comes to your finances, gambling can also impact whether banks and lenders offer you a line of credit.

Betting can be viewed as a form of irresponsible spending, and seeing gambling transactions in your financial records can be enough to make lenders nervous.

Before considering placing a bet, read the auto finance provider by Zuto list of ways gambling could affect your chances of borrowing money.

Frequency of play

UK financial firms are embracing Open Banking more than ever, and research suggests more than 64% if the population will have adopted the service by next year.

For players who allow Open Banking when applying for credit, this means lenders will have a broader view of income and expenses.

While there are no set rules and each lender operates differently, there are a few different factors that are regularly reviewed if gambling transactions are reported in your financial history:

  • Frequency of play activities
  • Amount (s) spent on the game
  • Frequency and amount compared to your current balance and income

Underwriters want to see that there is no sign of financial distress associated with the gambling activity when they examine, to make sure that they have full confidence when lending money that the loan will be repaid.

Risk indicators

Lenders typically look at a list of “risk indicators” when deciding whether or not customers can afford to borrow money. These include:

  • Use of unordered overdrafts
  • Returned direct debits
  • Relations with collection agencies
  • Play activity
  • Recent loans
  • Payday loans

If customers have more than one of the above factors, it will likely affect their chances of being approved for a loan.

Get a mortgage

Someone who frequently gambles a large chunk of their income and has a bank statement with a high-risk spending pattern might have difficulty getting a mortgage.

Frequent payments to gambling companies might make you a less attractive prospect than a candidate who makes regular deposits into their savings instead.

Lenders may consider how much you gamble versus how much you win, so small weekly payments to the national lottery for example might be quite acceptable.

For gamers who are worried about applying for auto financing with bad credit, or looking to improve their credit rating to increase their chances of getting a loan, Zuto has published a guide here.

For more information and support on substance abuse issues, visit the Gamcare website.

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