Men don't ask for debt direction either

By CreditCards.com

Think men and women whip out their credit cards for different reasons? You would be right.

It turns out we don't handle debt repayment the same way either. As with height, we are more alike than not. Still, there are a few fascinating differences between the genders regarding credit.

1. Charging habits

On the whole, men and women carry roughly the same load of consumer debt. However, a disparity begins to emerge when some men start seeking a partner. According to the 2008 findings (.pdf file) reported in the academic journal Evolutionary Psychology, "Males who are relatively higher in mating effort may have a greater tendency to maximize their display of economic power, saving little and even spending beyond their capacity through the use of credit."

In other words, the desire to attract a member of the opposite sex can influence a man to lay down the plastic a little more frequently than perhaps is best for his own financial health.

• Quiz: What kind of spender are you?

And what about business owners -- do male and female entrepreneurs use credit in the same way to finance their company's needs? Not really, according to a 2002 study (.pdf file) by Federal Reserve economists Alicia Robb and John Wolken. They found that female business owners were significantly more prone to borrow using credit cards than their male counterparts. Male-owned companies, on the other hand, used trade credit -- buying supplies and services from another business with "pay later" agreements -- and paid after the due date with greater frequency than female-owned businesses.

2. Number and type of credit accounts

Men are more apt to have car loans, mortgages and other types of installment accounts, while women hold a greater number of bank cards and use them more frequently, reported a 2006 study on the subject by Experian's Score Index. The report also indicated that women had somewhat more credit inquiries than men.

Why the discrepancy with the number of credit cards? Many times it's a practical issue: When men and women couple up, it's often the woman who has greater reign over the family's household finances and therefore makes more purchasing choices. In short, a woman may use credit more simply because she's shopping more often.

• Quiz: How's your credit score?

3. Paying for medical care

Gender differences in credit behavior emerge even at doctor's offices and hospitals. A 2008 survey conducted by the Guardian Life Insurance Company of America revealed that men are far more likely than women to charge major medical recovery expenses. According to the study, 20% of Americans who had direct experience with a critical illness used a credit card to pay for their recovery-related expenses. However, it also found that men are twice as likely as women to have done so: 30% of men charged critical-illness recovery expenses as opposed to just 14% of women.

Although financing such medical care is an option, it is usually better to request an interest-free payment plan with a hospital or physician. The worst they can do is say no, and they frequently say yes.

4. Credit card offers

In CreditCards.com's June 2008 "Taking Charge" survey, a significant difference between the sexes became apparent regarding how men and women dispose of credit card offers received in the mail. The results showed that women are considerably more likely than men to shred their credit card offers (55% versus 43%), while men are more likely to throw them in the garbage (34% versus 25%). The results don't surprise financial planners and credit counselors, who say it mirrors what they see among their clients: Women tend to be more conservative and men less cautious.

Howard Dvorkin, the founder of Consolidated Credit Counseling Services, a Florida nonprofit, explains the different approaches as women being more conscious of "doing the right thing" with the credit card offers, while "the guy is just going to rip it up and hope nobody goes through the garbage can."

Continued: Who's likely to seek help first

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