By S.E. Slack
According to a new study by Experian, women are better at managing their money and debt than men.
The credit-scoring company compared the financial differences between men and women in a recent credit trends study and found that overall, women stretch their dollars and use their credit more wisely. That’s helping them purchase homes and obtain loans on other large-ticket items.
Ohio women carry 4.38 percent less debt and use their credit 2.45 less than men do. Both men and women have an average credit score of 679.
“When looking closer at our data and cross-referencing it with other data sources, we see that women working full time in the United States earn approximately 23 percent less income than men but that women are taking steps to manage their finances better than men,” said Michele Raneri, vice president of analytics for Experian.
She added that the most notable difference is that men are taking bigger individual mortgage loans than women and it appears that they are having a slightly more difficult time making those payments on time.
Nationally, about 72 percent of consumers have joint mortgages and the remaining number represents men and women who borrowed on an individual or independent basis. Overall, men carry 4.9 percent higher mortgage loan debt than women and have a 7 percent higher incidence of late mortgage loan payments.
Maxine Sweet, Experian vice president of public education said, “Seeing the divide between how men and women approach credit is interesting, but what’s most important is understanding the value of building a good credit history. How you manage credit and debt is critical to your financial well-being.”
Sweet said three key steps to financial success include paying attention to what’s in your credit report, never missing a payment and keeping utilization rates low.
The company says it’s also a good idea to review your credit report annually, keep a mixture of credit types open and keep credit card balances low.