- Men were also more likely to miss a payment or make it late, according to a new Forbes Advisor credit card survey
- Nearly half of men carry over their balance each month, compared to a third of women
Men are more likely to have their credit limit reduced
Men are significantly more likely than women to have had their credit limit reduced or missed a credit card payment since the start of the pandemic, new research has found.
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The study by financial comparator Forbes Advisor surveyed 2,005 American adults to find out about their credit card usage, including spending habits, frustrations and the impact of the Covid-19 pandemic.
He revealed that men are much more likely to have had their credit limit reduced since the start of the pandemic. More than half of men surveyed (53%) said their credit card issuer had reduced the limit on at least one of their cards in the past two years, while for women the figure drops to 37 %.
It also found that 82% of men missed a payment and/or made a late payment during the Covid-19 pandemic, compared to 71% of women. The most common reason for both sexes was that they needed money for basic necessities, at 44% for women and 43% for men. Three in ten men (30%) simply forgot to pay, while only 21% of women said the same.
Additionally, a higher percentage of men carry over their credit card balances from month to month, forcing them to pay interest. The survey found that 48% of men report deferring their balance each month, compared to 36% of women.
Overall, the study found that almost one in six women (16%) have never applied for a credit card, but only 7% of men have not.
When it comes to rewards, the number one reason men ask for a credit card is to transfer the balance from another card, which was cited by 50% of men surveyed. For women, the top concern is earning spending rewards, with 37% choosing this reason.
Women’s favorite type of credit card reward is transferable points – just over a quarter (27%) selected it as their main benefit, followed by 26% preferring hotel points. Three in ten men (30%) chose hotel points as their preferred reward, followed by airline miles at 24%.
Genders are united in their greatest frustration with credit cards, with the highest proportion of women (40%) and men (39.3%) saying interest rates were the biggest annoyance . They also agreed on the second biggest irritation – the annual fee.
The study also looked at regional differences in credit card usage, finding that those in the North East are most likely to have missed or made a late payment, with 82% in the region saying they have. , compared to just 64% of those in the Midwest. .
West was the second most likely to have skipped a payment as 77% said they had, followed by South East at 76% and South West at 71%.
People in the Northeast were also the most likely to have had their credit limit reduced in the past two years. Just over half (51%) of respondents in the region said this had happened with at least one of their cards. By contrast, only a third of Midwesterners (33%) have had their limit lowered.
Commenting on the discovery, a spokesperson for Forbes Advisor said, “These data offer fascinating insight into how different demographic groups manage their credit card usage and how they have been impacted financially by events over the past two years. Overall, we find that men are more likely to not only use a credit card, but also to treat it in ways that could be considered risky. Some of these behaviors can have the potential to hurt a person’s credit score, and with a quarter of Americans saying they’ve missed or made a late payment simply because they forgot, it’s a risk that can easily be avoided.
The study was conducted by Forbes Advisor, whose editorial team has decades of personal finance experience. He is passionate about helping consumers make financial decisions and choose the financial products that fit their life and goals.
The team brings a wealth of industry knowledge to the advisor’s coverage of consumer credit, debt, banking, investing, insurance, lending, real estate and travel. Its priority is to ensure that its coverage, reviews and advice are backed by research, in-depth expertise and strict methodologies.