Are Women More Credit Conscious Than Men?

Do you know the era has changed and today men and women are equivalent to the financial journey?

FACT: In the cloud of people with credit scores above 700, 72 percent are women, and 66 percent are men.

This gives you a sense of understanding about more consciousness of women in terms of their financial habits.

Trend of Higher Credit Score

The study shows that women are becoming more credit conscious than women. A recent study revealed that 70 percent of women with a credit score above 700 whereas. Among them, more than 35 percent have a credit score above 800 points. On the same credit score limit, there are about 35.6 percent men, which clarifies how women manage their finances and hence are considered more credit conscious than men.

More Women Opting for Credit Cards

Another study has revealed that women opting for credit cards have significantly increased in the last year (2021). In 2020, nearly 8.41 percent of women applied for credit cards, whereas the percentage increased to 12 percent in 2021. This percentage increase was experienced in women with age groups below 25 years.

Increase in Personal Loan

In the last few years, personal loan requests have decreased. However, these stats have revered women borrowers. Women have requested more personal loans than men in the recent past. Moreover, the amount of personal loans has also increased, making them a step forward to smart decision-makers and credit conscious. It means more women are applying for personal loan with high amount requests.

Reasons Why Women are Better Credit Conscious

Better Saver: The biggest reason women dominate men in terms of financial decisions is that they are better at saving. With better savings, half of your financial battle is won. Interestingly, women are good at saving. Women (as homemakers) are already managing their monthly finances smartly, which is also inherited at the professional level.

Risk Safety: Men are more prone to take higher risks resulting in numerous downfall incidents. However, women are smart here as they are risk-averse by nature. Yes! Indian families already know that women have a strong belief in Gold as the best investment instrument, and hence they safeguard their assets from unpredictable market risks.

Disciplined than Women: Women from an early age are more disciplined than men. They are good at following rules and sticking to a specific investment or trading plan. The discipline is inherited till last, and hence they smartly manage their funds. Trading or long-term investment requires discipline where women outrank men and show the best results.

Efficient in Multitasking: Multitasking is yet another great trait of women that makes them superwomen. Indians better know that a woman takes care of the house, professional life, kids, husband, and other family members without any complaint. The same is true with managing their credits and assets.

High Mental Strength: Being a multitasker, women know the risk in various situations that makes them mentally stronger than others. A woman isn’t just a word; it is the blend of sister, wife, mother, daughter, and a working woman that cumulatively serves their family and strives to fulfill their desires regardless of any calamity. Their optimistic nature always keeps them active and mentally strong.

This brings women into the limelight, but it doesn’t mean all women are credit conscious. Some women have low credit scores resulting in numerous financial troubles. If you are one among them, we provide you with a few tips that will help you increase your credit scores.

Check Your Latest Credit Score: Before you start making any strategy, it’s essential to know where you are present. Hence, you should check your latest credit score. Numerous online websites can fetch your credit score report by submitting a few details like PAN number, email address, mobile number, etc.

Once you see your credit score, it’s the baseline for your efforts to boost it. Check where you stand. An excellent credit score lies above 750, while a good credit score lies between 700 and 749. So, check where you presently are.

Apply for a Credit Card: Applying for a credit card is the next step if you are planning to boost your credit score. For working women, it’s easy to get credit card offers from different lenders. All banks search for women consumers and provide you with various credit card offers with the new credit card.

Getting offers from multiple banks makes it easy to compare them and find the best option. However, once you get a credit card, it is responsible for using it smartly. Whether you have a single credit card or multiple cards, it’s always crucial to avoid unnecessary purchases. Any missed repayment can damage your credit score and cause harm to your future loan eligibility.

That’s why you are highly recommended to evaluate different credit cards and find the one which best suits your requirement alongside other benefits.

Record Your Credit Journey: Once you start your credit card usage, build a credit footprint. A credit footprint is a record of what you spend using a credit card. There are short-term personal loans available to increase your credit score.

You can take a short-term loan to make purchases of appliances, gadgets, and other items that need enough cash altogether. All these efforts help you improve your credit score. The credit score improves as you continue repaying the bills and EMIs on time.

Above all, make sure you get loans that fit your budget as it can harm your monthly budget and financial planning.

All the tips mentioned above will help you build your credit score and make it ready for future loan eligibility. A high credit score holder gets any type of loan in a shorter time compared to other borrowers.

The biggest benefit of having an excellent credit score is getting loans at lower interest rates. You always get a low-interest rate whether you apply for a secured or unsecured loan.

Once you achieve an excellent credit score, it’s essential to maintain it forever. Getting a high credit score is tough, but it isn’t challenging to maintain it. Still, you should know the tips that will help you keep your credit score high. Follow the below-listed points to maintain your credit score.

Pay Every EMI on Time: Biggest task to maintain a good credit score is to keep track of your repayments. Every time you pay the repayment amount on time, it brings you closer to a strong and high credit score. It also marks you as a responsible credit borrower. It shows your commitment towards what you purchase using a credit card and repays it on time before skipping the deadline. This is a good practice that you should follow forever.

Watch Your Credit Usage Regularly: You are given a credit card with a high credit limit. This doesn’t mean you use 100% of the limit as it brings you under the category of ‘credit hungry.’ It’s a good rule to use 30 percent of your credit limit to ensure the credit utilization remains within limit without compromising your credit reputation. With higher credit consumption, repayment tasks become challenging, causing significant harm to your ongoing budget and financial practices.

Balance Your Secured and Unsecured Loans: Loans, where the collateral is required, are considered secured loans, e.g., home loans, mortgage loans, etc. However, loans without collateral are considered unsecured loans like personal loans, instant jumbo loans, etc. You should always maintain a balance between secured and unsecured loans to maintain a good credit score.

Watch Your EMIs and Loan Accounts: You should keep a check on your monthly EMIs that helps you better manage your finances and settle the monthly budget accordingly. You should also check various loan accounts that run in your name. There are numerous loan fraud cases on borrowers’ names, causing loan accounts that weren’t applied. Such loan frauds cause a big problem to you as they may damage your credit score.

NOTE: If you encounter any loan fraud on your name, immediately report to the respective bank and cyber cell.

Check Your Credit Reports Regularly: At last, it’s essential to check your credit score regularly. This is a good practice to ensure your credit score is good and isn’t affected by any of your past activities.

With that said, you have grabbed enough knowledge about the financial aspect of women and why they are more credit conscious than men. Undoubtedly, they inherit the financial management skills from birth but utilizing these skills for professional use and securing the future is remarkable.

Today, women are as efficient as men, and that’s why women have also touched the sky with glory. The old African proverb “If you educate a man, you educate an individual, but if you educate a woman, you educate a family (nation)” was a pioneer in its time and even today. It clearly says how an educated woman can help to upbring an educated family. This education is the root that makes them more credit conscious and becoming financially independent.

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