Loan Applications Denied Because of Online Bingo ?

The collapse of the housing bubble caused banks on both sides of the Atlantic to tighten up the requirements necessary to obtain a mortgage. Banks now require a bigger down payment and do a thorough credit check. There are many reasons that a mortgage application may be denied but most people are probably unaware that playing online bingo is reason enough for some banks to refuse a loan application. The current economic situation is causing concern for many and no one is really sure when the global economy will turn itself around. The financial decisions people make today are likely to affect them well into the future.

When applying for a loan or mortgage most people try to minimize anything that could adversely affect their credit rating. These days’ credit and background checks are more thorough and recent reports indicate that some banks are taking a look at the bank statements of those applying for a loan. The reports also say that some banks are denying loans to those who have deposited money into online bingo and gaming accounts. This means that for some people a harmless game of online bingo could lead to serious trouble in the future.

Of course banks have a legitimate concern. Obviously a compulsive gambler is a poor credit risk but more online bingo players do not gamble compulsively. Most gambling addicts prefer fast paced high stakes games such as poker or blackjack. It would be ridiculous for banks to suggest that online bingo players are at risk for gambling addiction. Banks say that they need to protect their investments and minimize the number of loan defaults. A recent article in the Irish Examiner confirms that banks are denying loans to people bas3ed on online gambling transactions.

According to the report in addition to taking a look at online bingo games and gaming transactions banks are also scrutinizing digital television bills, mobile phone bills and private school tuition. Banks are using these items to deny loans. According to Trevor Grant, the chief executive of the mortgage debt advisory company Negotiate, confirmed that gambling transactions on bank statements are being used as a reason to deny mortgage or restructuring loans regardless of other financial information. Grant stated “When a lender assesses an application for reduced mortgage repayments due to financial difficulty, the customer is required to submit a detailed application, often including current account and credit-card statements.” Who knew that a harmless game could have such severe repercussions?

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