Does Gambling Affect Your Credit Score?
Gambling is a popular pastime, with many people enjoying the thrill of placing bets and playing games of chance like roulette and blackjack. However, if you’re not careful, gambling can have a negative impact on your finances and even your credit score — but perhaps not in the way you would have thought.
Does Gambling Affect Your Credit Score?
It’s important to understand that gambling, by itself, doesn’t have a direct impact on your credit score in the UK. In other words, if you enjoy placing bets or playing games of chance, your credit score will remain unaffected as long as you don’t use credit to fund your gambling activities.
However, if you use credit to gamble and fail to make payments on time, your credit score may suffer. Late or missed payments are recorded on your credit report, which is used by lenders and other financial institutions to assess your creditworthiness. A history of missed or late payments can make it more challenging to obtain credit in the future.
In addition, if you have a significant amount of debt, this can also harm your credit score. Your credit utilisation is one of the factors that lenders consider when assessing whether to lend money, and at what interest rate (depending on how high risk it sees you). If you owe a lot of money, it can make it harder to get approved for credit in the future.
Follow These Steps to Lessen the Impact
If you’re concerned about your gambling habits and their potential impact on your credit score, there are several steps you can take to address the issue. The first step is to seek help and support for any gambling addiction you may be experiencing. Various organisations in the UK, such as GamCare and BeGambleAware, provide free advice and support to individuals struggling with gambling addiction.
Additionally, it’s crucial to review your credit report regularly to identify any missed or late payments that may be negatively impacting your credit score. You can obtain a free copy of your credit report from any of the three main credit reference agencies in the UK – Experian, Equifax, and TransUnion.
If you do find missed or late payments on your credit report, take immediate steps to rectify the situation. This may include contacting your creditors to arrange a payment plan or seeking professional debt advice from an organisation like the National Debtline, StepChange, and even Citizens Advice.
