GamStop and Credit Rating – Does GamStop Affect Credit Rating?
June 19, 2020
Do GamStop and gambling affect credit rating?
In this article, I am going to be answering a question that I do get asked a lot, that being will Gamstop have any effect of your credit rating and will joining leave a footprint on your credit score.
Well, I am happy to let you know that there is going to be no need for Gamstop to check your credit file what so ever when you sign up to their service and as such there will be no footprint what so ever from that organisation on your credit file if you do decide to sign up to their service, so please do keep that in mind.
What is a Credit Rating?
If you are in the UK when you apply for any type of credit, the lender whoever that may be will perform all manner of checks on you. They will include a KYC check which stands for Know Your Customer, they will check your identity and address too, and they will also check your credit rating.
Everyone in the UK will have a credit rating, and it allows lend to see if you have taken out any loans previously and will also allow them to see if you have paid back those loans on time, whether you have kissed any payments.
Every time you do take out a loan or any type of credit the lender will update your credit file the above and as such you will be given a credit rating, which could, of course, be a good one if you have always paid back loans on time for example or whether you are late in paying any of them back too.
Any lender is going to always base their decision to lend to you on your credit rating, so the better it is, the more chance you will be able to obtain a loan or any type of credit moving forward.
Overdrafts, Loans and Mortgages
Obviously, if you ever ask a banking institute for a loan, overdraft or Mortgage you are going to be credit checked, however, please do also be aware that many people have found their banks will also question them on any gambling site deposits they have made in the past.
I have heard of many people who have been asked such a question, often when for example applying for an overdraft, and as such be aware that is something that could happen.
Obviously, you are allowed to use your own money and spend it on anything you so desire, however, there is no doubt in my mind that some lenders will be asking you about such deposits and may make a negative decision on lending to someone that has been spending a lot of money gambling online.
Blocking Gambling Site Deposits
A new scheme has been recently introduced that will allow anyone who wishes to do so to set their debit card to automatically block gambling site and gambling app deposits via the options settings found in their banking apps and online banking platforms.
By you choosing to take that option and activate it via the debit card option settings all attempts to deposit funds into any type of gambling site or gambling app will be declined, irrespective if you have the fund available in your account or not.
Therefore if you have been experiencing any type of problem gambling or just want to remove the temptation to gamble using a debit card then I strongly suggest that you may use of that option settings, as by doing so you are not going to be able to use a debit card to gamble online or via a gambling app using your debit card with that option setting switches on and activated.
Be aware it can be very easy to empty your bank account if you have a gambling addiction problem by repeatedly making deposits using a debit card, and no one should ever be put into such a position and the consequences of losing everything in your bank account due to repeatedly deposits can be very devastating.
Credit Card Declines
It was recently decided that credit cards should not be accepted as a form of deposit option at any gambling related sites and apps, and as such any UK Gambling Commission licensed site or app is no longer allowed to accept deposits by credit card.
That decision, therefore, means that at no time will you be allowed to use any credit card at any UK licensed gambling site to make deposits small or large into your account, any company that allows you to do so faces fines and could risk losing their UK gambling license.
Each deposit made using a credit card is labelled as such and when any attempt to made to deposit using such a card the card issuer will generate a decline notice based on that fact, as such please do not attempt to use such a card to gamble online.
There have been some offshore and non UK gambling sites and apps that will try and circumvent that new rule by coding deposits as something other than gambling site deposit, that is immoral and illegal but just be aware that is what could happen if you do have an account at some of those sites.
Gambling using a credit card has always been something that has led many people to get into debt in the past and I can fully see why the decision has been made to block such transactions from being processed.
Many people have experienced a lot of problems amassing debts on one or more credit cards in the past and as such, it is good to see the decision to block such transactions have been made and put into place.