Did you know that the price for “stuff” – like clothing, hair products, and dry cleaning – is more for women than men?
When looking to buy or lease a car, did you know that men usually get a better deal than women?
Did you know that men tend to accumulate more debt than women?
When it comes to debt problems, did you know that women are more likely than men to seek help?
Although men’s average of overall debt and credit card balances is higher than women’s, men still tend to have a higher credit score. For example, according to Credit Sesame, men have an average credit score of 630 out of a possible credit score of 850. Women, on the other hand, have a slightly lower average score of 621.
So, what’s going on here? Do men and women really handle credit that differently?
The simple answer is that the credit difference starts with the pay gap that exists between men and women. Men continue to make more money than women – in fact, in 2015, full-time working women made only 80 cents for every dollar made by men! And while income does not affect a person’s credit score, having a bigger paycheck can lead to a gender credit gap.
This pay and credit gap can have lasting effects on women’s financial health. But by following these simple tips, you can start closing that gap and get the credit you deserve:
- The amount of your credit card balance compared to your credit card limit affects your credit score, so lower your credit utilization.
- Manage your debt. That means you need make a monthly budget to plan your expenses, and know how much your owe and to whom you owe.
- Pay your bills on time. This includes your monthly rental payments.
The time is now to take the right steps to close the gender credit gap and get the credit score you deserve.