Well ladies, we’ve come in 2nd, again. Multiple studies show that women have worse credit scores than men. How is that possible? We are the ones proven to be more rational in our financial decision making compared to men. Cognitive neuroscience has proven that we ladies are a great deal more rational in financial decision making than are men!
So what gives? What is keeping our scores down?
Studies conclude that due to the gender pay gap women have suffered from for so long, our decreased income leads to higher debt to credit ratio than that of men. Due to a lower income level, women as a group overall are granted a lower credit limit than men. This leads to women using more of their credit, and getting closer to their given limit; resulting in a higher credit to debt ratio, which takes points off credit scores.
(For more on credit scores, check out our Infographic "What Does Your Credit Score Mean")
So, there you have it ladies, once again we are fighting more to stay alive in this financial world. The good news? The gender pay gap is continuing to be a topic of discussion - which is a substantial win in itself compared to previous years.
In the meantime, we will need to find other methods to continue to take control and excel with our finances. Stay tuned, Sisterhood ……
“Second place is not a defeat. It is a stimulation to get better. It makes you even more determined.”