Does Gambling Affect Your Credit Score? Gambling and Credit Score Connection Explained

by S.Ateljevic • August 26, 2022
does gambling affect credit score

For many people, gambling is a fun and thrilling way to spend their free time. But what happens when gambling starts interfering with everyday life and finances? Are there any connections between gambling and credit scores? Does gambling affect your credit score at all?

In this article, we’ll explore the connections between gambling and credit scores, so you can learn how to protect yourself both financially and emotionally when you hit the casino or race track. So read on to learn more!

Gambling With a Credit Card

Even though credit cards are a convenient way to pay for gambling, they can also be a risky proposition. When you gamble with a credit card, you’re essentially borrowing money from the issuer in order to place your bets. If you’re not careful, this can lead to debt down the road. 

That’s because casinos can become an expensive habit, and it’s all too easy to charge more than you can afford to pay back. Before you begin using your credit card for gambling, it’s important to understand the risks involved. Otherwise, you could end up in financial trouble.

For one, gambling can be addictive, and you can quickly get caught up in the moment and lose track of how much you’re spending. In turn, this can lead to significant debt. Additionally, if you win big, you may be tempted to overspend, thus falling into a loop.

A few online casinos require you to use a credit card for deposits or withdrawals, which can put your personal and financial information at risk if the site is not secure. Luckily, gambling sites that accept credit cards are becoming sort of a rarity these days, as most people prefer using debit cards or other payment methods like PayPal that don’t lead to risking their credit score.

What Credit Reports Show About Gamblers

When you apply for a credit card or a loan, the lender will pull your credit report in order to get an idea of your financial history and ability to repay the debt. This is why it’s important to keep your credit report clean – lenders use it as a way to assess your riskiness as a borrower.

Interestingly, your credit report may also contain information about your gambling habits. That’s because some lenders will flag accounts that show evidence of gambling with a credit card. The objective is to gauge the risk involved in granting credit, and it can impact your ability to get approved for new credit.

If you have a history of gambling, it’s important to be upfront about it with your lender. Otherwise, you could be in for a surprise when your loan application is denied.

Connections Between Gambling and Credit Score

So, does gambling affect your credit score? Not directly, but it may make you ineligible for certain loans.

Obviously, borrowing large sums to spend on gambling is not a great idea. If you’re constantly borrowing to gamble and not paying your debts on time, it will reflect badly on your credit report. This can lead to a lower credit score, which will make it harder to obtain new credit in the future.

Similarly, people with a gambling problem end up with financial issues the longer they keep up this habit. This is because gambling can be an expensive habit, and it’s all too easy to charge more than you can afford to pay back. When this happens, you may start falling behind on your credit card payments, and that’s how gambling affects credit score.

What follows are reports of missed payments, and they will definitely damage your credit score. Additionally, if you rack up a lot of debt from gambling, you may eventually default on your loans. This, again, leads to lowered credit score and the inability to get loan approvals.

We also mentioned direct reporting. When you’re using a credit card in casinos, those transactions show up on your bank statement, which makes it impossible to hide from the credit companies.

Protecting Your Credit Score While Gambling

Keeping all that in mind, you’re probably thinking it’s best to avoid gambling in the first place. Or, at least, gambling with a credit card that can lead to damaging your credit score. If you really have to use a credit card in a casino, there are some precautions to take so as to keep gambling strictly on the fun side and not risk your credit score.

Playing slots or poker can be an exciting way to spend some time, but remember that it’s all a form of gambling. Just like with any other type of gambling, there’s always the risk of losing money. However, there are some things you can do to help protect your credit score while playing these games.

First, consider using a credit card that offers cash back or rewards points. This way, if you do lose money, you’ll at least get something back. If you absolutely must pay with credit cards in a casino, set a budget for your gambling activities and stick to it. It’s easy to get caught up in the excitement of gambling and end up spending more than you can afford to lose. By setting a budget in advance, you can help ensure that you don’t get in over your head.

Finally, be sure to keep track of your wins and losses. This will help you avoid getting too discouraged if you have a losing streak. By following these tips, you can help protect your credit score while still enjoying the occasional gamble.

Improving Credit Score if You Have a Gambling Problem

Gambling can be a spine-tingling way to spend some time, but it can become an issue if it starts to interfere with your life. If you find that you are spending more time gambling than you can afford, or if you are using gambling as a way to cope with stress or other problems, it may be time to seek help or apply for GameStop. Does GameStop affect credit rating? No, and in fact it helps you protect it as you’ll be excluding yourself from gambling activities.

There are other ways to improve your credit score after you’ve determined you have a gambling problem. You can start by making sure all of your bills are paid on time. You should also try to settle any outstanding debts as soon as possible. 

In addition, you can work with a credit counselling service to help get your finances back on track. By taking these steps, you can improve your credit score and get back on the road to financial success.

Bottom Line

As you can see, playing in a casino with a credit card might not be the smartest choice if you’re worried about your credit rating. Whether you’re planning to apply for a loan or to purchase a car using a line of credit, it’s important to monitor your credit score. That includes, if possible, avoiding gambling in the ways described above that will show up as a red flag to creditors.


Do banks check if you gamble?

Banks do check your transaction history when you apply for a loan. If you use your credit card to deposit in a casino, those transactions will show up on your account.

Does gambling affect getting a loan?

It’s possible for a lender to deny your loan request if they detect signs of gambling activity. This is especially true if you have any outstanding gambling debt and a lot of transactions involving online casinos.

Does gambling self-exclusion affect credit score?

No. Self-exclusion serves as a way to avoid gambling. Services that offer it are discreet, and credit companies do not get notified if you opt for self-exclusion from gambling.

Can you get a car loan if you gamble?

Yes and no – it depends on how you’ve maintained your credit score. How does gambling affect credit score, then? Numerous transactions, loans, and defaulted payments contribute to lowering your chance of getting a car loan. In line with that, if you don’t play at casinos frequently and don’t have outstanding debt, your credit score won’t suffer.