Debt Utilization: Assessing the debt situation by gender
Is there really a difference in credit behavior between men and women?
 The Experian National Score Index recently looked at consumer behavior by gender to determine if there is a difference in how men and women manage their credit. The answer may surprise you.
Sara and Sam*, two newlyweds, recently discovered these variations on their flight home from their honeymoon. They were seated together, looking through a magazine when they stumbled across the Experian National Score Index study.
As they were quietly reading, Sara pointed out to Sam that women have a higher average credit score than men. "A full seven points higher," she said playfully. "682 for women and 675 for men."
"Yes, dear," said Sam teasingly. "But women have more open credit accounts than men, by a 5 to 4 margin.
"You're right, Sweetie," replied Sarah. “But it looks like men carry more debt than women, $12,953 to $11,486."
Dissecting the Differences
As Sara and Sam showed, although there are some key differences between the two genders, they are not extremely different.
While men are more apt to have car loans, mortgages and other types of installment accounts, women had higher average bankcard utilization, 36.86, to 28.51 for men. However, this equated to a similar credit usage rate overall, at 24% each.
Women had slightly more credit inquiries than men, 2.42 versus 2. 33. Men also had a lower rate of late payments, on average, .80% to .88% for women.
After the Honeymoon
Sara and Sam decided that in order to live happily ever after, they needed to fully understand how certain factors impact a credit score. After some research, Sara realized the importance of paying bills on time. Late payments are no way to start off a new marriage and can have a rather negative impact on a credit score. She also decided it was time to minimize her spending and only apply for new credit as needed. High debt levels can have a negative impact on a score, particularly if the balances are close to credit limits. Additionally, applying for new credit too frequently can potentially harm a credit score. After reviewing her findings with Sam, the new couple began their new life towards a positive credit experience!
*Sara and Sam are fictional characters
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