How gambling affects your chances of getting credit

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With the European Championship in full swing, experts also continue to raise concerns about the rise in gambling.

Football tournaments are notorious for the spike in betting and gambling, with the National Gambling Helpline reporting a 5% increase in calls during the 2018 World Cup.

When it comes to your finances, gambling can also have an impact on whether banks and lenders offer you credit lines.

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

Before placing a bet, read the auto finance provider’s list of how gambling can affect your chances of borrowing money.

Frequency of gambling

UK financial firms are using open banking more than ever, and research suggests that over 64% of the population will have adopted the service by next year.

For players who authorize Open Banking when applying for a loan, this means that lenders have a more complete view of income and expenses.

While there are no hard and fast rules and every lender works differently, there are a few different factors that are regularly checked when gambling transactions are flagged on your financial history:

  • Frequency of gambling activity
  • Amount (s) spent on gambling
  • Frequency and amount compared to your current account balance and income

When reviewing, insurers want to make sure that there is no evidence of financial distress related to gambling activities to ensure that when issuing a loan they have full confidence that the loan will be repaid.

Risk indicators

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

  • Unarranged overdraft use
  • Returned direct debits
  • Debt Collection Relationships
  • Gambling activity
  • Recent borrowing
  • Payday loan

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

Take out a mortgage

A person who frequently puts large chunks of their income at risk and has a bank statement showing a pattern of high risk expenses might find it difficult to obtain a mortgage.

Frequent payments to gambling companies could make you less attractive than an applicant who instead makes regular deposits into savings.

Lenders might consider how much you gamble in relation to your earnings, so small weekly payments to the national lottery, for example, might be perfectly acceptable.

For players worried about applying for auto finance with poor credit or looking to improve their credit rating to increase their chances of getting a loan approval, Zuto has released a guide here.

For more information and support with addiction problems, see the Gamcare website.


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