# Banks now negatively "credit-scoring" those with gambling transactions on credit card



## oysterman (5 Oct 2009)

Do bear in mind that banks are now negatively credit-scoring people with gaming transactions on their credit cards...


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## ajapale (9 Oct 2009)

*Re: Banks now negatively "credit-scoring" those with gambling transactions on credit*

Ive copied this interesting observation from elsewhere.

Oysterman do you have any evidence for this?

Thanks
aj


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## jhegarty (9 Oct 2009)

*Re: Banks now negatively "credit-scoring" those with gambling transactions on credit*

The banks are doing it for mortgages. It was in a papers about 10/12 months back.

Of course they can only see your transactions if you are with the bank you want the mortgage off.


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## bullworth (9 Oct 2009)

*Re: Banks now negatively "credit-scoring" those with gambling transactions on credit*

what criteria do they impose regarding gambling  ? Ive maybe gambled 100 euro in a year. How do they know I havent won more than I lost ? Whats wrong with a little flutter now and again ? Thousands of people lay bets on the world cup etc. it sounds very big brotheresque  if they judge me for  a few small bets.


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## TSThomas (10 Oct 2009)

*Re: Banks now negatively "credit-scoring" those with gambling transactions on credit*

Understandable if the amounts involved are excessive, though why not penalize those investing in shares, etc. either then?


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## Molly (10 Oct 2009)

*Re: Banks now negatively "credit-scoring" those with gambling transactions on credit*



> Of course they can only see your transactions if you are with the bank you want the mortgage off.


 
Most lenders require 3 months recent bank statements for a mortgage application if primary bank account is held elsewhere.

Generally speaking gambling transactions will only have a negative effect on a mortgage application if the debits are having an adverse effect on the bank account, ie resulting in subsequent returned DD's, heavily reliant on overdraft to fund gambling or if the amount funding the gambling represents a high percentage of disposable income.

This is not a recent thing, I have been underwriting for 3 yrs and debits on bank statements to online gambing sites have always been considered as part of the underwriting process.


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## jhegarty (10 Oct 2009)

*Re: Banks now negatively "credit-scoring" those with gambling transactions on credit*



Molly said:


> Most lenders require 3 months recent bank statements for a mortgage application if primary bank account is held elsewhere.
> 
> Generally speaking gambling transactions will only have a negative effect on a mortgage application if the debits are having an adverse effect on the bank account, ie resulting in subsequent returned DD's, heavily reliant on overdraft to fund gambling or if the amount funding the gambling represents a high percentage of disposable income.
> 
> This is not a recent thing, I have been underwriting for 3 yrs and debits on bank statements to online gambing sites have always been considered as part of the underwriting process.



Credit card transactions don't show on a bank account. This thread is about credit cards.


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## Blackberry (10 Oct 2009)

*Re: Banks now negatively "credit-scoring" those with gambling transactions on credit*

What a load on nonsence.  irish banks are not negetively credit scoring on gambling transactions.  No evidence exists to support  such a thesis.

What card issurers should be doing is charging a cash advance fee on such transactions.


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## ajapale (10 Oct 2009)

*Re: Banks now negatively "credit-scoring" those with gambling transactions on credit*



oysterman said:


> Do bear in mind that banks are now negatively credit-scoring people with gaming transactions on their credit cards.



From what I can see oysterman is usually right! So Ill await his reply before coming to a conclusion.

btw interest on cash advances for gambling transactions are discussed on another thread. Please do not divert this thread off topic.

Thanks
aj


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## Concert (10 Oct 2009)

*Re: Banks now negatively "credit-scoring" those with gambling transactions on credit*

We had a strange situation with my student son when he applied for a student loan when going to USA for Summer. 

The loan was granted and the condition was that repayments would not start until the following March and he was told that he also had the option to reschedule the loan. 

When March arrived he decided to reschedule and once again I had to go guarantor for the amount loaned. 

Three days after the loan reschedule I was to go in and sign papers but I got a call that morning to say that he had to pay loan off in full. 

I queried why the sudden change of plan and they himmed and hawed and would not give me a direct answer, eventually the girl told me it was to do with transactions on his account. 

We discovered later that he had been playing poker and this, we presume,  is why the reschedule was not allowed. 

Luckily for him we were in a position to pay off loan for him.

Hopefully he learned his lesson from this.


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## j26 (10 Oct 2009)

*Re: Banks now negatively "credit-scoring" those with gambling transactions on credit*

That'll be a boon for those 3V disposable credit cards


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## jhegarty (10 Oct 2009)

*Re: Banks now negatively "credit-scoring" those with gambling transactions on credit*



Blackberry said:


> What a load on nonsence.  irish banks are not negetively credit scoring on gambling transactions.  No evidence exists to support  such a thesis.
> 
> What card issurers should be doing is charging a cash advance fee on such transactions.



[broken link removed]


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## ajapale (10 Oct 2009)

*Re: Banks now negatively "credit-scoring" those with gambling transactions on credit*



> Ronan Sheridan of AIB said that while there was no policy that explicitly said online gambling would prevent a person getting a mortgage, he said the bank examined “anything that could impact on an applicant’s ability to repay".


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## bond-007 (11 Oct 2009)

*Re: Banks now negatively "credit-scoring" those with gambling transactions on credit*



j26 said:


> That'll be a boon for those 3V disposable credit cards


They don't work on gaming sites.


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## bullworth (11 Oct 2009)

*Re: Banks now negatively "credit-scoring" those with gambling transactions on credit*

how about Paypal transactions ? If someone was to load their Paypal account with money from a credit card  and subsequently use this money at a gamblng site, how would it appear on the credit card statement ?


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## bond-007 (11 Oct 2009)

*Re: Banks now negatively "credit-scoring" those with gambling transactions on credit*

For starters you can't load a Paypal account with funds from a credit card. You can from a current account. It would not say anything about gambling.


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## bullworth (12 Oct 2009)

*Re: Banks now negatively "credit-scoring" those with gambling transactions on credit*

Bond- I have used paypal in the past and while knowing my credit card number off by heart theres no way I d know my bank details or sort codes etc and have so I presume when I used Paypal I've used my credit card to load it. Are you sure about this ? Ive never used my bank account to pay for anything online.


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## bond-007 (12 Oct 2009)

*Re: Banks now negatively "credit-scoring" those with gambling transactions on credit*

You can't use your credit card to say stick €100 into your account to use at your leisure. You can however use it to pay for purchases immediately. These would show up on your card statement as gambling or whatever the money is used for.
You can however load your paypal account from a current account. The bank can't see what you spend that money on.


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