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12 October 2021 | By Lending People

Gambling and personal loans—when to roll the dice

Thinking about applying for a personal loan? We explore how gambling transactions can affect your chances of approval and when it's a safe bet to apply anyway.

If you’re in the market for a personal loan, but you’re worried about some recent gambling transactions, we’re here to help. Lenders will look at many things when assessing your loan application—and yes, gambling transactions are one of them. Whether these will affect your chance of approval is another story. Here’s some more info to help you decide whether a personal loan application is a good bet.


Why do lenders worry about gambling?

Before a lender approves any loan, they assess their information to determine how risky an applicant is and if it meets responsible lending criteria. Usually, you need to supply the last three months of bank statements. It’s important to remember that lenders aren’t scouring your financials, making judgments on what you spend your money on. You can still buy your lunch every day if you have enough disposable income to support it! Gambling transactions raise red flags because they can be addictive, and often you can end up spending more than you can afford, which is a riskier bet for the lender.


Does gambling affect your credit score?

Gambling does not affect a clients credit score unless the result of gambling is that they are late paying other bills and financial commitments. The two are not directly related, but a person with a gambling addiction often fails to prioritise their financial obligations and ends up with a low credit score.

What are the odds of getting loan approval with gambling transactions?

If you’ve got one or two small gambling transactions in the last 90 days of your bank statements, this shouldn’t affect your chance of approval. However, if you bet big or have regular gambling transactions, you’re unlikely to get approved for a loan. Unfortunately, the amount you have to gamble to influence a loan decision isn’t clear-cut. Lenders will look at your whole application and assess your unique circumstances.

How can you improve your odds?

If you’re trying to get any loan or finance, our advice is to steer clear of gambling entirely—it’s better to be safe than sorry! Other things a lender will assess include:

· Whether you have consistent income

· Whether you’ll be able to afford the repayments

· Whether you manage your money well

Still not sure about whether to apply for a loan? If you want some advice on your unique circumstances, get in touch. One of our advisers will be more than happy to talk to you about your options.

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¹Fees: We do not charge a fee to use our service (commonly referred to as a platform fee, broker fee, or referral fee) if you are an existing customer who has previously entered into a personal loan that we arranged on your behalf; or you do not enter into a personal loan arranged by us. A fee to use our services is applicable in all other cases. See our Terms & Conditions for the applicable fees.

²Annual Interest Rate (AIR): The AIR offered by our Personal Loan providers ranges from 6.95% p.a. to a maximum of 26.95% p.a.

³Annual Percentage Rate (APR): Also known as the 'comparison rate', the APR is calculated by adding together the AIR plus any additional fees that may apply (like establishment fees charged by providers). New Zealand law does not require APR disclosure, but doing so can better highlight borrowing costs. The APR offered by our Personal Loan providers ranges from 7.80% p.a. to a maximum of 27.91% p.a. The APR is accurate only for the representative example given below and may not include all fees like early repayment fees (if any). Different terms, fees or other loan amounts might result in a different APR.

⁴Minimum and Maximum Repayment Terms: Repayment terms offered by our Personal Loan providers range from 12 months to a maximum of 84 months.

Representative Example of the Total Cost of a Loan: If you borrow $20,000 over a repayment term of 36 months at an AIR of 6.95% p.a., your total repayments will be $22,493 (made up of $20,000 principal, interest charges of $2,243, and an establishment fee of $250). This example assumes monthly repayments and does not include premiums for any optional insurances, fees for using our services (if any) or default fees.

⁵Terms and Conditions: Our services are provided in accordance with our Application Terms & Conditions. All approvals are subject to provider credit criteria and responsible lending requirements. The loan amount and interest rate offered will depend on your circumstances, the type of lending required, and the security (if any) provided will reflect the loan amount and interest rate offered by the provider. Provider establishment fees, terms, and conditions apply.