In 2018, the US Supreme Court repealed PASPA (the Professional and Amateur Sports Protection Act), making it possible for states to regulate sports betting how they see fit. The move caused an online gambling revolution in America and gave rise to online sportsbooks.
Before, US residents were only able to gamble at offshore sites that accepted players from the country. Due to the recent availability of domestic plus foreign platforms, the number of US bettors has sky-rocketed. However, many also wonder if and how this activity affects their credit score.
In this article, we will address the following:
· Does online gambling affect your credit score?
· Do banks check if you gamble?
· Can banks stop gambling transactions?
· How can I increase my chances of being approved for a mortgage?
· What do you do if you have a gambling problem?
Does Online Betting Affect Your Credit Score?
The mere act of placing bets with the most trusted and reliable online sportsbooks will do little to affect your credit report. That said, irresponsible gambling will bring about reactions that will have a negative effect.
What you need to concern yourself with is how will a lender view gambling transactions. If you have gone into an overdraft via betting, that will impact your loan approval.
So, if you want to know – does gambling affect your mortgage application? It can because banks look at credit transactions as a cash advance.
Do Banks Check If You Gamble?
When you apply for a loan or mortgage, banks carry out affordability checks. Their purpose is to make sure that you can pay back what you borrow. The process entails a review of your bank statements for the past six months or longer.
Note that financial institutions do not specifically search for gambling transactions. If you haven’t borrowed funds for betting and have a good credit history, finding them on your statement should not be an issue for loan approval.
However, each bank has a different stance on gambling, and the influence of betting transactions will vary from lender to lender.
Can Banks Stop Gambling Transactions?
No, banks do not have permission to stop your gambling transactions. However, you can request a spending limit regarding your betting activities. If you feel that too much of your funds are going to this pastime, you can ask your bank to block such transactions emanating from your credit/debit card.
Each institution has a scheme that operates in a slightly different way. Yet, in principle, they all work pretty much identically. The bank has a list of known gambling operators with whom you may not transact, or they block transfers that get listed as online wagering. It is as simple as that.
Internet casinos sportsbooks also allow you to set loss and deposit limits. Once you reach your predefined amount, the platform enforces an automatic block.
How Can I Increase My Chances of Being Approved?
If you enjoy betting on sporting events and games of chance but have worries about your loan or mortgage getting approved, here are a few things you should do:
· Always clear pending debts on time – It shows your bank that you are accountable. That you can plan your finances without neglecting past responsibilities.
· Keep your spending within the limits of your stated expenses – These will show up in your reports, so you do not want to seem dishonest.
· Continuously save funds – If you regularly put money into your savings account, your bank will see you as a low-risk borrower.
· Minimize your gambling activity – If you are prone to wild sprees, look to stop such sessions. That sort of behavior may come across as you having a lack of control over your finances.
What Do You Do If You Have a Gambling Problem?
It is of the utmost importance that you seek help if you believe that you are developing a gambling addiction. Remember, wagering, first and foremost, should be an entertainment-oriented activity.
Never look at online casinos/sportsbooks as quick-rich schemes. As mentioned, always set deposit/loss limits with your chosen operator. If you think you may be forming a compulsion toward this activity, utilize the self-exclude option inside your account page.
Betting platforms also list a myriad of services that can help you overcome your addiction. These include BeGambleAware, Gamblers Anonymous, and Gambling Therapy. US residents can call the National Problem Gambling Helpline Network for help.
If you do not borrow money to fund your gambling hobby, this activity will not affect your credit score.
That said, if you are planning to apply for a mortgage or a large loan, it is best to avoid wagering using your credit card. An option worth exploring is buying cryptocurrencies. Digital coins keep your identity and transaction history anonymous while providing super-fast transfers.