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.
This blog is provided for general information purposes and is not a recommendation you enter into or exit any particular loans or insurance policies. Information on the blog does not take into account your particular circumstances, including your objectives, financial situation or needs. We recommend you seek advice from a financial adviser before taking any action as appropriate. The Lending People Limited (FSP240365) is a licensed financial advice provider and can provide advice on some types of personal loans, insurance. Find out more about The Lending People and how we may be able to help you.