No one wants a low credit rating since this will make it hard for anyone to get a credit card or loan. Imagine your surprise when a simple game of bingo can affect your credit rating. In this article, we will clear the misconception of bingo and credit rating and the factors that can make creditors raise a brow.
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How Bingo Affects Your Credit Rating
Playing bingo will not affect your credit rating if you play with your own money. This involves fiat or physical cash when purchasing your cards or ticket at a bingo hall. Even if you spent thousands of dollars on bingo games, creditors would never be wary of your expenses.
Credit cards are now banned in the United Kingdom for gambling transactions. However, when you use a loan to play at online bingo sites or physical halls that take this type of payment, you risk getting creditors’ attention for the wrong reasons. In addition, taking out a loan and sending it to your account wallet is nearly the same as sticking a bullseye on your chest for the banks to see.
There have been online bingo players who used loans to buy tickets. Later, they were surprised to find that they had difficulty applying for a mortgage or an auto loan. Even if a player has stopped playing for 6 months or a year, they will have gambling transactions that are a red smear on their record. Expenses of more than $100 to any bingo establishment will be visible on anyone’s record. Bank companies will likely see these transactions since they conduct thorough credit research on all applicants.
Understanding Credit Risks and Playing Bingo
Before any lenders approve a mortgage, loan, or credit card application, they need to know if that person will be able to pay them back. This is where credit risks come in, a rating determining how likely a customer will miss a payment.
Why would a lender consider bingo a risk? Nearly every bank associate bingo with gambling. While bingo is a harmless game played in churchyards or retirement homes, when you compare it to games in Las Vegas casinos, money is still involved. Bingo players are still wagering money, buying tickets or cards, for a chance to win cash prizes.
It is important to note that online bingo expenses are not the sole reason to be a credit risk. When a bank goes through an applicant’s transaction, lenders go through their monthly financial outputs. This includes an applicant’s monthly groceries, utilities, carrier contracts, credit card bills, and other expenses. Lenders will be wary of applicants whose monthly expenses are taking out a large chunk of their monthly income and are expected to allocate their free cash on new loans.
Banks will always protect their money, making them incredibly strict when choosing who to lend their money to. If an applicant has been diligent in paying their bills (including their credit card fees) and has no outstanding debt, online bingo expenses are less likely to affect their credit score. When an applicant closes an old account, misses a bill payment, and has a derogatory mark on their credit reports, playing bingo will further decrease the likelihood of getting a loan approved.
Playing Bingo Without Risking Your Credit Rating
If you have a loan or mortgage application coming up and do not want the lenders to say no, here are ways you can still enjoy online bingo or land-based bingo halls.
Use Alternative Payment Methods
FIAT money is always the way for physical bingo halls when avoiding the bank’s attention. Players can withdraw money from their credit cards to play bingo, and lenders will not even notice it.
Online bingo sites do not require a credit card or debit card since most offer a wide range of payment options, such as prepaid credit cards. Since April 2020, credit cards were even banned for gambling payments.
Prepaid cards that contain a set amount of cash are available in nearly any retail store or convenience store. You do not need to enter any personal information while using these cards. When you want to play bingo anonymously, look for reloadable prepaid cards that let you withdraw your winnings without needing a bank account.
Bitcoin and other cryptocurrencies are other alternatives to credit cards. You can buy or sell crypto coins via physical ATMs or trading sites without using your personal information. Note that you can only use this payment method with online Bitcoin bingo sites or ones that accept cryptocurrencies.
Avoid Providing Credit Card Information
If you are still looking to use your card with online bingo sites while avoiding the eyes of banks, an e-wallet service such as PayPal, Neteller, or Skrill is a good alternative. An e-wallet is an online payment service that connects with most credit cards and bank accounts, allowing you to use your bank cards on bingo cards without leaving a mark on your bank statement.
Play Free Online Bingo
Community bingo is the best way to enjoy the game without risking your mortgage loan and avoid any hit on your finances. You can find many free online bingo games on social media platforms and mobile app stores. Community online bingo games allow you to compete against others for in-game credits.
Can my credit rating go down if I play online bingo with money?
If you use your credit card to buy online bingo tickets or cards, you are likely to have your credit rating go down. This is due to the association of bingo with gambling, which can increase a person’s credit risk when seen by lenders.
How can a creditor know If I am playing online bingo with money?
Lenders conduct background checks on people applying for a loan. These checks will look into the credit card statements of an applicant, which will give them an idea of whether that person used their credit cards to buy bingo cards or tickets.
Can cryptocurrency prevent my credit rating from decreasing while I play online bingo with money?
Bitcoin and other crypto coins are alternative payment methods that let you buy online bingo cards or tickets without using your credit card. Online bingo players can hide their identity by purchasing crypto coins from outlets that do not require entering personal information, such as Bitcoin ATMs or exchange sites.
How can playing bingo increase credit risk?
Playing bingo can bring down one’s credit score due to its association with gambling. Gambling problems usually lead to financial issues, which makes bingo players seem risky to banks.
What is the best way to increase my credit rating when I go through gambling debts?
Paying your bills and loan payments on time can gradually improve your credit score. Another method is to consolidate your debt if you have several outstanding ones. Debt consolidation involves a bank loan that will pay for every debt, leaving you with just a balance to track and pay for.
Playing online bingo with your credit card can affect your credit rating. You can still enjoy bingo using alternative online payment methods or with physical money to risk your credit score.