Could Online Gambling Damage Your Credit Score?

8th Apr 2024

Once regarded as a very niche hobby, the internet has brough gambling into the mainstream. Mobile apps and internet websites are widely advertised as a fun way to spend your free time so it’s no surprise that so many people have embraced gambling as a leisure activity. However, there are still serious worries about the impacts of so many gambling sites, just a click away. Campaigners regularly call for more rules and control on the market and concerns often arise among players regarding its impact on their credit scores. This is because playing online bingo, or other types of online gambling games often need a constant flow of payments, which may be seen as a signal of financial unreliability.

Understanding Credit Scores

Your credit score reflects how good a risk the lenders and financial services companies think you are. Credit scores are much more about your payment history than they are about your personal wealth or income. Missing payments will decrease your score, paying your bills on time and managing your debt responsibly will increase your credit score. Your credit score is affected by many different factors and will change over time. That also means that if your credit score is lower than you would like, you have the power to do something to improve it.

If on the other hand you have a higher credit score, that indicates that you are seen as lower risk and may open up further opportunities to you. There are lots of online resources available for checking your credit score, and it is a good habit to get into checking your score on a monthly basis.

Impact of Gambling on Credit Scores

While gambling online or paying games such as bingo can affect credit scores, the importance will vary. For most occasional gamblers, who manage their finances responsibly, the impact is minimal. However, excessive gambling spending can raise concerns for lenders due to the associated risks of financial instability and addiction meaning spending can spiral out of control.

So, the occasional game of online bingo, or placing a bet on a major sporting event every couple of weeks is not going to damage your credit score in any way. But if you are prioritising adding credit to your gambling account over other spending and bills, then this will be spotted by lenders and will be reflected in a lower credit score.

Managing Your Credit Score

Maintaining a steady income and managing credit responsibly will cancel out any negative effects of gambling on credit scores. If you start to worry that your gambling is starting to get out of control, then get help from one of the many support organisations, or put a temporary ban on your online account to give you time to think about next steps.

If your credit score is already lower than you would like, then it may be best to avoid any spending on online gambling until the picture improves. Never be tempted to borrow money to top up an online gambling account.