Total Bankruptcy         Lexington Law         Turbo Tax

Creditinfocenter Blog header image 2

Despite Pay Gap, Women Better Than Men At Credit Management [SURVEY]

May 31st, 2013 · No Comments · Consumer Debt, Credit Scores

Meredith Simonds

by Meredith Simonds

In a recent survey of 750,000 credit reports, credit reporting bureau Experian compared the credit habits and history of men to women. Overall, it’s women who come out on top, an especially impressive showing considering the gap we’re still facing in income equality. Here’s what Experian found in the following categories.

Debt Amounts

Men carry an average of $26,227 in debt.

Women carry an average of $25,095 in debt.

Both of these numbers include credit card debt, auto loans and personal loans. While this means women carry 4.3 percent less debt than men, it’s a nominal difference tipped in the other direction considering that women also earn 23% less than men.

Credit Utilization Ratio

Men use 31 percent of their available credit.

Women use 30 percent of their available credit.

Your credit utilization ratio is the percentage of your credit limit that is being used and factors into 30 percent of your credit score. Both men and women borderline on this one, as credit utilization should never exceed 30 percent. However, 10 to 20 percent is more ideal. To calculate yours:

  • Add up how much you have in available credit.
  • Add up how much of that credit you are carrying a balance on.
  • Divide your total balance by your total available credit to determine your percentage (i.e., credit utilization ratio).

For instance, if you have $5,000 in available credit, and are carrying a balance of $1,000, then your debt-to-credit ratio is 20 percent. That’s $1,000 divided by $5,000, equaling .20 or 20 percent.

Credit Scores

Women have an average credit score of 675.

Men have an average credit score of 674.

Depending on the scoring model, your credit score may range anywhere between 350 and 800 points. For Experian, most scores fall between 600 and 750 with scores above 700 is considered “good.” As with the other two major credit reporting bureaus, your Experian credit score is determined by:

  • Number and severity of late payments
  • Type, number and age of accounts
  • Total debt
  • Public records

How does the size of your debt, credit utilization ratio, and credit score compare? If you haven’t done the math lately, request your free Experian credit report.

Tags: ·····

No Comments so far ↓

There are no comments yet...Kick things off by filling out the form below.

Leave a Comment