Are you an occasional better or a regular in your local bookies? Learn how your habits may affect your credit score in our blog.
Enjoy putting a bet on the football?
A regular in your local bookies?
Either way, betting doesn’t directly affect your credit score, but the financial habits related to it can.
Having a better understanding of how these habits can affect your credit score will allow you to bet responsibly, without it affecting your financial future.
The Boshhh team has more information on how to reduce the effect gambling has on your credit report, how to improve a poor credit score, and how a bad credit contract phone will help you.
Gambling and your credit report
Your credit report assesses all things money-related to generate a score. This score is calculated based on:
- Credit utilisation
- Length of credit history
- Payment history
- Hard credit searches
What’s not included in a credit report is your bank balance. So, any gains or losses from betting won’t be flagged.
However, if you start to spend more than you can afford and rely on loans and your overdraft to fund your gambling, these will show up to potential lenders.
How betting can hinder your credit score
Associated behaviours can turn a bit of fun into a building debt that impacts your credit score. These include:
Credit card cash advances
While you can no longer bet using a credit card – as of 2020 – you can still bet using cash advances from it.
This gets a bit addictive, so you can quickly rack up debt, forgetting you have to pay the full amount back (plus interest)!
Missing payments
When betting starts to take over, it can be hard to budget your funds to ensure you have enough for the rest of your bills and essentials.
Missed payments stay on your credit report for up to six years, and while you can take measures to improve your score, these cannot be removed.
Casino lines of credit
If you’re betting in a casino, they’ll likely offer casino lines of credit, which is a way of borrowing money to make bets.
The application process involves a hard credit check. Too many of these in a short space of time can cause your score to dip, as it suggests you are reliant on credit to afford your hobbies.
Overusing credit
It’s advised you keep your credit use below 30% at all times to show you have experience handling credit and loans, but are responsible with them.
Funding bets with credit isn’t a great example of financial responsibility, so this reduces your likelihood of getting approved for loans and credit.
Getting out of betting debt
There’s only one way of clearing any debt…to pay it off!
However, this is easier said than done, especially when there is years’ worth of damage from betting.
The debt snowball method
The debt snowball method is when you start off by paying small amounts back at a regular pace, working your way up to larger amounts with high interest. This is a proven method and helps those affected to build momentum.
Paying off debt can be intimidating at first. By doing it this way, you can get into the routine of tackling payments, helping you to budget your income and outgoings.
Prioritise your debts
Some debts carry more serious consequences than others, so it’s crucial to address these first.
Many people opt to pay off debts with higher interest rates initially to minimise the total amount paid over time.
Budget your income
When knuckling down on your debt repayments, it’s unlikely you’ll be able to live a lavish lifestyle.
Get organised using a spreadsheet (or a tool that works for you) and tick off where you’re up to.
Also use this to budget your other bills and essentials (food, petrol, etc.) so you know exactly how much you’ve paid off and how much you have left to spend each month.
Get the job done quickly
If you’re financially able to do so, it’s a good idea to pay off more than the minimum amount when you can, to pay it all off faster.
Not only does this reduce the debt, but it also reduces the interest you’ll pay back over time.
Improve your credit history with Boshhh
If your credit report has been damaged as a result of gambling and loans, Boshhh is here to help.
Founded with those with poor credit scores in mind, our SIM-only contracts allow you to improve your credit score and build your financial future while benefitting from the UK’s most reliable network provider.
Boost your credit today with Boshhh!
