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Gender-Related Differences in Credit Use and Credit Scores
Report

Gender-Related Differences in Credit Use and Credit Scores


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Editorial Rating

8

Qualities

  • Controversial
  • Analytical
  • Overview

Recommendation

It’s no secret that equally qualified men and women have different experiences in the labor market. But the Federal Reserve’s consumer finance chief Geng Li looks into how credit market outcomes vary for a sampling of single American men and women, after adjusting such factors as income and education. He works around the data limitations of the US Equal Opportunity Credit Act, which restricts lenders from basing credit decisions on gender, so he merely scratches the surface of the topic. Still, getAbstract suggests this succinct report to policy experts and financial services professionals for the useful nuggets of information it offers on credit divergences between the sexes.

Take-Aways

  • Surprisingly little information is available on how the experiences of men and women vary in the US credit market. 
  • A study of single people finds that gender-based differences do exist in credit market experiences, with men typically enjoying higher credit scores.
  • Women tend to make more extensive use of their available credit and are also more likely to have a delinquent payment on their credit record.

About the Author

Geng Li is chief of the consumer finance section at the Board of Governors of the Federal Reserve System.