Gambling activities do not reflect on your credit report nor does it have a direct impact on the credit history of a person. However, financial behavioral issues related to betting can put punters in a financial mess, which, in turn, hampers the credibility of a person in terms of debt obligations and bill payments. Credit scores are solely based on the credit report of a person. Factors that decide a credit report include the history of payments, credit mix, credit history length, credit utility and amounts owned, and also recent inquiries, and new credit accounts. In addition to credit cards, popular websites such as Thegruelingtruth have continuously listed other safe and hassle-free casino deposit and payment methods.
Gambling and its effects
Gambling gains and losses are not reported to prominent customer credit bureaus like TransUnion, Equifax, and Experian. The bank balance and income of a person are not included in credit reports either. Thus, gambling gains and losses are not reflected in credit reports. Gambling can be a leisure activity but also is an expensive pastime that leads to gambling losses and obsessive gambling tendencies. In 2022, participation in betting activities has increased by 43% but remained lower than in the pre-pandemic period, which was 47%. Betting in brick-and-mortar casinos has also increased to 26% from 23% as compared to 2021. And with the emergence of new concepts such as Metaverse, players would be keener on investing in these initiatives, and credit card transactions are expected to grow further.
How gambling debt can affect one’s credit score
Even if betting does not directly affect the credit score, behaviors related to gambling can definitely impact one’s credit score. These include:
- Cash Advances: Cash Advances from credit cards is the primary method of racking up interest. Fees added to cash advances can even equal 3% – 5% of the money and interests add up immediately. Interest rates and fees can even lead to cash advance charges rising;
- Payday Loans: A quicker method of getting cash that could be used for funding betting or covering losses are known as payday loans, which come with massive fees to nearly 400% APR;
- Line of Credit at Casinos: Casinos might directly grant credit lines to punters. Application for a casino credit line will eventually result in a thorough inquiry on the credit line of a person who drops points.
- Failed Payments: When funds get tied up in casino debts or payments, one might find themselves missing payments and bills. Missed payments are always reported to credit bureaus which impacts the overall score.
National Council on Problem Gambling or NCPG
The NCPG states that obsessive gambling tendencies are not a financial issue but also a personal emotional problem leading to terrible financial consequences.
Debt resolution
Debt resolution methods for problem gamblers include:
- Debt Avalanche: This method helps in paying off amounts having the highest interest rate to save money;
- Debt Snowball: With this method, a punter builds up momentum by clearing off debts, even the smallest ones;
- Consolidation of Debt: This method lets a punter consolidate multiple debts into one single repayment with a lower interest rate;
- Credit Card Balance Card: This allows you to transfer your existing balance to a new card and pay a low APR or 0% for an initial period.
In a nutshell
Understanding credit reports are not too complicated but do require knowledge about handling personal funds. This is critical in understanding personal debts and the possibilities of getting loans in the future. It also offers a jumping point for users to rebuild their scores over time.
