Comparison of women’s and men’s credit scores in 2021
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Women’s incomes still have a way to go to catch up with men’s, but when it comes to credit, the two groups now share the same average credit score.
According to credit Company Experian’s data from the first quarter of 2020, women and men now share an average FICO credit score of 705. This is an increase of 1 point for women from the second quarter of 2019 and about 10 points for both groups since second quarter of 2015.
Since the Equal Credit Opportunity Act of 1974, the financial services industry has made strides in creating more equitable lending practices and giving women greater access to the same financial privileges as men. And as Mastercard recognized when he announcement its True Name ™ card initiative in 2019 for trans and / or non-binary consumers, such financial inclusion is also beneficial for members of the LGBTQ + community.
With the average American’s FICO score at an all time high, one thing is certain: more people than ever can reap the benefits of a good credit score, as long as they maintain it.
Below, To select explains what a FICO 705 score means and how a good credit score can help you in your life.
Using Experian’s estimates, 705 is considered a good credit score on the FICO scoring model.
FICO score ranges
- Very poor: 300 to 579
- Fair: 580 to 669
- Good: 670 to 739
- Very good: 740 to 799
- Excellent: 800 to 850
With a credit score of 705, you will likely qualify for a variety of credit and loan products, but at a higher interest rate than someone with a very good or great score. When reviewing the credit reports of those with a FICO credit score of 705, Experienced found that a third of them had late payments (30 days late), 42% had a car loan and 29% had a mortgage. The average consumer with a good credit score had 4.7 credit card accounts.
Having a good credit rating comes with big advantageslike being eligible for a lease on a new apartment and saving money on your car or home insurance.
When it comes to your personal spending habits, a good credit score can also help you get approved for a credit card with benefits on your purchases. Select rounding on best credit cards for good credit and the Citi Simplicity® Card made the ranking for its long introductory period of 0% APR for the first 18 months on one balance transfers (after, 14.74% to 24.74% variable APR). Balance transfers must be made within 4 months of opening the account.
If you never have a balance on your credit card, you won’t have to worry about accrued interest. However, take note that even with good credit, you may have a higher interest rate compared to the lower rates offered by lenders.
Even though women have caught up with men’s good credit, consumers of all genders can continue to increase their scores. Once applicants reach the very good and excellent credit score range, lenders are likely to offer better loan terms, such as a lower interest rate on auto loans or mortgages.
And with a better credit score in these high ranges, there is a better chance of qualifying for the best rewards credit cards, as the Citi® Double Cash Card which offers no annual fees and 2% cash back: 1% on all your purchases and an additional 1% after paying your credit card bill.
If you’re feeling down on a score of 705, you’re not alone. Experian data shows that 40% of consumers have FICO scores below 705.
The best way to increase your credit score is to pay off lingering balances and focus on all of your payments on time. Ideally, you want to make sure that your total debt amount is less than 30% of your credit limit (this is called your credit utilization rate).
Signing up for a new credit card can actually improve your credit utilization rate because you’ll have a higher total credit limit on all of your credit cards. However, having too many recent credit inquiries on your report can affect your score, so it is best to do some research before signing up for one. credit card for average credit.
If you have fair or average credit, consider them Capital One® QuicksilverOne® Cash Rewards credit card for 1.5% cash back on all your purchases or the Visa® Petal® 2 “Cash Back, No Fee” credit card. The Petal 2 card offers no fees *, an immediate 1% cashback on qualifying purchases, up to 1.5% after making 12 one-off monthly payments, and 2-10% cash back at select merchants .
As you make full payments on time to your new credit card, you should see your score increase. But if you’re worried that getting a new card might put you in more debt, you can focus on other steps first, like building an emergency nest egg and working on it. pay off your existing balances.
The Capital One® QuicksilverOne® Cash Rewards Credit Card and TD Cash Credit Card information was independently collected by Select and was not reviewed or provided by the card issuer prior to posting.
Petal 2 Visa credit card issued by WebBank, FDIC member.
* The regular APR variable for the Visa® Petal® 2 “Cash Back, No Fee” credit card currently ranges from 12.99% to 26.99%.
Editorial note: Any opinions, analysis, criticism or recommendations expressed in this article are the sole responsibility of the editorial staff of Select and have not been reviewed, endorsed or otherwise approved by any third party.