Credit rating or score plays an important role in our lives. There are tons of reasons why you might end up needing a loan, and a credit score will affect the interest rate or whether we can get one in the first place. Basically, it affects the price at which you can buy money. In the UK there are certain things you can do in order to improve your credit rating, and there are things you should also avoid to keep a higher score. Since online gambling is a big part of UK entertainment, it creates a dilemma on whether it affects one’s credit rating.
Gambling is a controversial topic, and it can often be connected with financial issues. To that end, we will explore the relationship between credit rating and gambling, and answer the question of whether and how it can affect your score.
Things You Should Know About Credit Rating
A credit rating reflects how reliable you are as a person when it comes to paying your debts. A higher score indicates a more reliable borrower. It does not reflect your level of wealth, only the level of your responsibility. So, if you are making all of your payments on time the rating will increase, whereas failing to pay the debts on time will make it go down.
This means that the rating is not set in stone, your actions directly affect whether it will go up or down. That being said, it is also slightly absurd that you have to borrow money if you have a bad credit score, in order to increase it.
Casino Accounts and Credit Rating
Unfortunately, there is no direct answer to this question, as it really depends on an individual. Technically speaking nothing in the credit scoring process includes gambling expenses, so from that perspective, the answer is no. But, problem gamblers do have financial issues because they gamble so, in their case it definitely affects the rating. So, you can have multiple online Canada casino accounts and play slots, blackjack, or poker regularly, and it won’t affect your credit rating. If you are only spending about 100 pounds a month that won’t even have an impact on whether you get a loan approved or not.
Can Casino Accounts Increase Your Score?
As mentioned, the score is not affected by your wealth, it only reflects your responsibility towards debt. So even if you do hit a jackpot it won’t affect the score in a major way. That being said, you do have an obligation to pay tax on those winnings, and if you take credit to pay those taxes and return it using your winning funds then your rating will go up. Paying taxes on time is not a part of a scoring process, but if you don’t pay them, and if your debt piles on, then it will affect the rating.
Gambling and Loan Approvals
Credit rating is not the only thing that determines whether your loan request is going to be approved. There are lots of other elements that lenders take into consideration, especially the amount of money you request and the purpose behind that request. These are the situations where gambling habits become more relevant. If you are asking for a big loan then the lender is going to be very thorough before he or she approves your request.
Through that due diligence, a question about gambling might pop up. So, if you are someone who spends lots of money on this form of entertainment, then it may hurt your chances of getting approved. However, if you did win a jackpot and acquired valuable assets that can serve as collateral or simply have more capital, then approving the loan will be a lot easier.
Is Credit Rating Important?
Even if it is not a determining factor for loan approval, credit rating is still an important component of the process. As such you should always strive to have a good score. It may seem like it’s just a number, but it does insinuate a lot of things. Clients with a high rating are always preferable, so making payment on time should be taken seriously. As a result, you should keep close track of your expenses, and reduce unnecessary spending habits.
Casinos are a form of entertainment, and everyone spends money on entertainment. So, you don’t need to cut it out of your life obviously but simply spend it responsibly. You should also try not to spend all of your card balance, as leftover funds on your card are also a positive signal in the eyes of lenders. Hopefully, this clarifies the relationship between online casinos and credit rating. Even if it doesn’t affect it directly, gambling is a relevant factor in the overall equation, sort of speaking.
