Does Gambling Affect Your Credit Score in South Africa?

Online gambling in South Africa has exploded in recent years. In the 2023/24 financial year, players spent around R1.14 trillion on bets, up from about R815 billion the year before. With this boom comes growing concern about how gambling may impact your financial health, specifically, your credit score. Here’s what you need to know:

#1: There’s No Direct Impact on Your Credit Score

First things first: gambling itself does not appear on your credit report, so it does not directly affect your credit score. Much like in other countries, credit reference agencies in SA, such as Experian, TransUnion and Equifax, do not record your betting habits.

#2: But the Indirect Effects Are Real

That said, gambling can have indirect but serious financial consequences:

• Borrowing to gamble (credit card cash advances) – Using a credit card to withdraw cash and gamble is a costly move. Not only do these advances attract immediate high interest and fees, but they also raise your credit utilisation ratio, which negatively impacts your score.

• Missed payments – If gambling leads to money shortages, it may cause you to miss essential payments like loan or utility bills. These missed payments are recorded and can significantly lower credit scores.

• Multiple credit applications – Gambling losses can prompt you to apply for new credit facilities in quick succession. Each hard inquiry can chip away at your credit score.

As TransUnion South Africa explains:

“your account payment history (whether your bills are paid in full and on time) is the main factor affecting your credit score. Other factors include credit utilisation, the length of your credit history, and your mix of credit types.”

In other words, it’s not the act of gambling that matters, but whether it causes you to rack up debt, overuse credit, or miss essential payments. All of which can pull your score down.

#3: Lenders May Still Look Beyond the Score

Even if gambling doesn’t appear on your credit report, lenders may still look at your bank statements when you apply for a loan or a bond. If they see regular or large gambling transactions, it could raise concerns about your spending habits. While these don’t directly lower your credit score, they may still affect whether a bank approves your application.

South Africa’s National Responsible Gambling Programme (NRGP) reports that around 1 in 10 problem gamblers end up with formal debt judgments or administration orders. These entries appear on a credit file and can devastate your ability to get new credit. Banks like Absa and Nedbank have also warned that visible gambling spend can raise affordability red flags during credit assessments.

How to Protect Your Credit While Gambling

Here are a few simple ways to keep your finances and credit score safe when gambling:

• Don’t gamble on credit. Avoid using cards or loans, since it’s expensive and risky.

• Always pay your bills on time. Missed payments hurt your credit fast.

• Keep debt low. Try to use less than 30% of your available credit limit.

• Be upfront with lenders. If applying for a big loan, be ready to explain gambling transactions.

• Check your credit report often. Stay on top of errors or changes.

What This Means for You

To put it simply, gambling does not directly affect your credit score. But its financial consequences (especially if credit is involved) can damage your creditworthiness in South Africa. With the right habits and safeguards, you can enjoy gambling without sacrificing your financial future.

Get help if needed. If gambling feels out of control, South Africa’s National Responsible Gambling Programme and groups like National Debt Advisors can help.