Women may earn less than men. They may go into retirement with less money than men. Men may think they’re better at managing money than women. But as far as banks are concerned, they’re a much lower risk for lending, according to the latest Credit Simple Nation Report.
“Women should have more confidence in managing their finances because, broadly speaking, they’re doing a better job,” said Credit Simple chief David Scognamiglio.
The report also found other large gaps (besides the gender pay gap) between the perceptions and reality in how men and women manage money.
According to the report, men are more confident with their money than women (32 per cent compared to 23 per cent) and more men feel they are good budgeters (32 per cent vs 23 per cent).
Women in every region and city across Australia except the Northern Territory have higher credit scores than men.
“Of all major cities, the widest gap in credit scores between women and men occurs in Melbourne, where women outperform men by a whopping 27 points,” states the report.
Canberrans are the best at managing money, with the highest credit ratings in the country. The southern states (Tasmania, Victoria and Australian Capital Territory) outperformed the northern states (Queensland, Northern Territory and Western Australia).
Mr Scognamiglio was surprised that so few Australians knew their credit score, saying that only 65 per cent were aware of the credit rating, which could be costing them hundreds if not thousands each year. Most Australian credit scores are between 300 and 850.
“At the end of the day, your credit score costs you money. On average, Australian women have a score of 796, compared to only 778 for men,” he said.
“That is why in many cases, women should be able to demand a better deal on home loans, credit cards, insurance policies and electricity prices than men.”
Who do you think is better at managing money?
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