In this brief guide, we are going to answer the question “does betting affect credit rating “
Does betting affect credit rating?
Betting doesn’t affect your credit rating unless you borrow money to fund your betting and end up defaulting or missing payments on those borrowed funds. Most secured lenders such as mortgage lenders will now thoroughly evaluate your bank statements before lending to you and if they see numerous betting transactions then they may not lend to you.
What if you are a professional gambler?
If you are a professional gambler then betting will still not affect your credit score except you are funding your profession with loans and credit cards and default.
As a professional gambler, you may find it much harder to secure credit, especially secured credit such as home improvement loans as your income may be seen as unreliable to the secured lenders.
What is your credit score?
Your credit score is a number given to you by each credit bureau. It is a measure of your creditworthiness based on your past credit behaviour.
Different credit bureaus have different credit gauges and ratings. This means they all offer different maximum credit scores. In the UK the three credit bureaus as Experian, Equifax and Transunion.
Every month the different credit and utility providers you interact with will report your repayment behaviour back to the credit provider. The credit provider then adds this up with all other information they have on you to determine if your credit score should remain the same or change.
The way each credit bureau calculates your credit score is proprietary to them and hence we do not know exactly but we do know what affects your credit score and what does. Betting does not affect your credit score as of today as credit bureaus do not collect any data from betting institutions.
It could be that in the future betting institutions begin to provide data to the credit bureaus based on set criteria such as does who bet over a particular time each week etc but this is highly likely as of now due to the fact that it will greatly dent the profits of the betting institutions.
What is in your credit score?
So we have established that betting does not affect your credit rating. So what exactly is in your credit score and how does it affect your credit rating?
Your repayment history: Ths shows how often you repay your credit and if you repay it on time
Your electoral register data: this shows if you are on the electoral roll at your current address and how long you have been there.
Your county court data: This shows if you have any county court records on your name such as county court judgement
Bankruptcy register: this shows if you have been declared bankrupt
CIFAS data: This shows if you have been known to commit any fraud or been a victim of fraud.
Credit data: This shows all your credit accounts (such as banks, mortgages, credit cards), when they were opened, any balance outstanding, your repayment history and the term.
How to improve your credit score?
There are various ways you can get a good credit score, we will list some of the steps you can take to get a good credit score below.
Get a credit builder card; this will help you show good credit behaviour by repaying your credit card on time each month.
Get a credit builder loan; this will help you show good credit behaviour by repaying your loan on time each month.
Get a secured credit card; this will help you show good credit behaviour by repaying your credit card on time each month. Secured credit cards are very rare in the UK.
Get on the electoral roll; getting on the electoral roll at your current address proves that you have stability based on how long you have been on the electoral roll.
Make credit repayments on time; making your credit repayments on time will add a positive repayment history on your credit accounts and boost your credit score.
Keep your credit utilization below 30%; keeping your credit utilization below 30% will ensure your credit score boosts as it shows you are not dependant on credit to live.
Avoid defaulting on any credit repayments; avoiding any defaults on your credit accounts will show that you are able to keep in line with your credit agreements and are a good borrower.
Avoid Making too many credit card applications at the same time; making too many credit applications at the same time will make you look desperate and push your credit score down.
Avoid closing credit card accounts early; closing credit accounts too early will make it look like you are involved in fraudulent activity
Check your credit score for any errors; checking all your credit profile for errors is a good idea as credit profiles may contain errors which limit your credit score from growing. If an error is found report it to the credit bureau and they will place a “notice of correction” on the file whilst it is investigated. You can check all your credit reports by getting a statutory credit report from all of them or using a service like checkmyfile.
Do not incur any court judgements such as bankruptcy, county court judgements or a home repossession; these judgements stay on your credit file for 6 years and will push your credit score down as long as they are there.
FAQs: Does betting affect credit rating
Does betting affect mortgage?
Yes, betting can affect your mortgage as a mortgage lender may choose not to lend money to someone who they see as an addictive borrowing. This is due to the fact that you are more likely to run up debts and hence default on your monthly mortgage repayments.
Does having a Paddy Power account affect mortgage?
Having a paddypower account will not directly affect your mortgage but if there are numerous paddy Power transactions on your banking statements then it is very likely that this could affect your mortgage as most mortgage lenders will not want to lend to anyone they view as an addictive gambler.
How far back do mortgage lenders look at bank statements?
Mortgage lenders will usually look at your last 3 months worth of banking transactions but most mortgage lenders are now reviewing transactions through algorithms and hence can look as far back as 12 months.
Can a professional gambler get a mortgage?
Yes, a professional gambler can get a mortgage but due to the unpredictable nature of their income, the mortgage lender may require a guarantor or require them to have a large mortgage deposit.
In any case, if you are a professional gambler then you should ensure you have a good credit score. You can do this by building your credit score.
Do I have to show the mortgage company all my bank accounts?
Yes, the best thing to do when making an application for credit is to be upfront with the lender.
Mortgage lenders can see how many bank accounts you have as this data will usually be registered on your credit file. If you try and hide a bank account they may grow suspicious and even refuse you a mortgage.
In conclusion, although betting does not directly affect your credit rating it could inadvertently affect your credit rating if you are funding your betting with loans or credit cards.
In this brief guide, we answered the question “does betting affect credit rating “.. If you have any questions or comments please let us know.