Men are almost twice as likely as women to default on credit card bills (but don’t worry, we’ve got the fix)

We’ve done a new study and discovered that men are almost twice as likely to have a credit card default on file than women, which can seriously affect their ability to access credit and negotiate better deals.

The analysis looks at Aussies’ credit card defaults over the past five years and shows men account for a whopping 64 per cent of defaults, while women represent 36 per cent. Meanwhile, women are more likely to fix up a credit card default than men (nine per cent versus six per cent respectively).

Credit card defaults - Men vs Women

We also compared the frequency of credit card defaults across generations, with Gen Y coming out on top, accounting for two fifths (41 per cent) of this type of default, while Baby Boomers have the lowest share out of the three main age groups (Gen X, Y and Baby Boomers), at just 20 per cent.

Credit card defaults - Gen Y vs Baby boomers

“This analysis goes to show, you can’t make any assumptions about your credit score until you actually check it, and the stereotypical image of women spending frivolously on their credit cards and ignoring their bills isn’t necessarily as accurate as you might think,” Credit Simple spokesperson Emily Price said.

“A debt may become a default when it’s in excess of $150 and more than 60 days overdue, and this can mean additional fees and repayments. It can also seriously affect your credit score and future applications you make for credit.”

The findings are reflected in Aussies’ credit scores. The data shows women have an average credit score of 713, compared with 697 for men. Across the generations, Baby Boomers top the list with an average credit score of 763, followed by Gen X and Gen Y, with scores of 694 and 636 respectively.

Average credit score - Men vs Women

“At we’re pledging to help Aussies understand and improve their credit scores,” Ms Price said. “By getting free access to key parts of their credit information through, Aussies can understand if they’re eligible for better deals from banks, energy companies, and telecommunications providers.

“Aussies should try to pay their credit card off on time and in full every month. Setting up an automatic bank transfer can help ensure you don’t miss repayments and get stung with nasty fees.

“Mitigating defaults will help to maintain and improve your credit score. Remember, the higher your credit score, the more leverage you’ll have to request better deals from banks, telcos and energy providers.”

Credit Simple

Credit Simple gives all Australians free access to their credit score, as well as their detailed credit report. See how your credit score compares by age, gender and community and gain valuable insights into what it all means.

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