Matched betting is a popular way to make some extra money by taking advantage of bookmakers’ free bets and promotions. It can help you pay off debt, save for a house deposit, or simply boost your income for a better lifestyle. If you’re thinking about starting matched betting, you might wonder if it affects your credit score. It’s a reasonable concern since credit scores impact many areas of our financial lives.
The short answer is no, matched betting does not directly affect your credit score. However, there are some ways it could indirectly impact your credit score, depending on your financial choices. Let’s explore these.
**Does matched betting show up on your credit report?**
The transactions involved in matched betting, like deposits to gambling sites and placing bets, do not appear on your credit report because they don’t involve borrowing or lending. The only thing that might show up is when you open a new account with a bookmaker, which will appear as a soft search. Soft searches are only visible to you and do not affect your credit score.
**Soft searches vs. hard searches**
There are two types of credit checks: soft searches and hard searches. Soft searches are harmless and don’t affect your credit report. They happen when you check your own credit score, when companies do ID checks, or when lenders do preliminary assessments. Hard searches occur when you apply for credit, such as a loan or credit card, and they can impact your credit score.
When you open an account with a bookmaker, they perform a soft search to verify your age and identity. These soft searches can only be seen by you. Companies performing credit checks for mortgages or loans will only see hard searches, not any evidence of matched betting.
**Ways matched betting could indirectly affect your credit score**
While matched betting itself does not affect your credit score, there are a few indirect ways it could have an impact:
1. **Opening new bank accounts**: It’s a good idea to use a separate bank account for matched betting to keep it distinct from your daily spending. Opening a new bank account usually involves a hard credit check, which can cause a temporary drop in your credit score. This is normal and not usually a big deal unless you open many new accounts in a short period.
2. **Using credit cards or loans**: It’s not advisable to use a credit card or loan for matched betting since it’s not 100% risk-free. You should only invest what you can afford to lose. Some people might use a credit card or loan to increase their betting bankroll, which would involve a hard search and a temporary drop in their credit score. Falling behind on repayments would also negatively affect your credit score.
3. **Debt**: Most people can do matched betting safely and profitably. However, if you have a tendency towards gambling addiction, matched betting might not be safe for you. Ending up in debt would impact your credit score.
**How to check your credit score**
It’s always smart to keep an eye on your credit score. In the UK, agencies like Experian, Equifax, and TransUnion offer free online access to your credit report for the first month. Monitoring your score regularly can help you stay on top of any changes and reassure you that matched betting isn’t harming your credit rating.
**Matched betting and mortgages**
While matched betting doesn’t affect your credit score, it could impact getting a mortgage. Lenders will review your recent bank statements for affordability checks, and numerous betting transactions might raise concerns. Using a separate bank account for matched betting can help avoid this issue.
**Conclusion**
In summary, matched betting doesn’t directly affect your credit score. However, be mindful of factors like opening new bank accounts and credit cards, which could indirectly influence it. If you manage your money well and avoid taking on extra debt for matched betting, you shouldn’t see any negative effects. In fact, matched betting can improve your financial situation if done wisely. Keep an eye on your credit applications and spending habits to maintain a healthy credit profile. Happy betting!