Credit Card eZine - News and Articles about Credit Cards

Credit card deals for men and women

2007-08-14

There has been a lot of discussion on spending habits of men and women. Even though no particular bank or card issuer has done an extensive research in US, a study has been conducted in Canada, UK and India to see how men and women view, invest and spend money using their credit cards.

When it comes to joint relationships, money seems to be one of the main causes for disagreements and divorces. One of the leading reasons for that is the fact that men and women are educated differently on the subject.

According to experts, we acquire information and habits from our same-sex parent. Men and women view their ultimate purposes differently. We are raised to achieve different targets in diverse ways. Perhaps, this is why there has been great amount of categorizations so far.

When it comes to women, they spend to support everyday living. They seem to spend on things that help them express their personality. In this case, money is treated as a mean to improve lifestyle. Such habit includes shopping for things such as groceries, apparel and beauty products.

Even though women spend less on their credit cards, the things they buy do not carry any significant value. In other words, they spend more on children, clothes and groceries - things that you can't invest in.

Nevertheless, women customers are better risks when it comes to credit cards. According to one research, women are more aware and cautious towards credit card usage. Furthermore, women cardholders have lower bankruptcy rates than men. However, according to Canadian credit card usage survey, women are less likely than men to be aware of the interest rate charged on the credit card they use.

This is not the case with men. They seem to treat money as an investment tool, seeking a value in every purchase they make. Furthermore, they are more aware of their future financial life. Therefore, men seem to spend more using credit cards, but that's solely because they pay more often for things that have a value, such as cars and other assets. The average balance on a man's cards is also usually bigger than that of a woman's.

Even though men may spend twice as much on themselves, they also spend more on their partners than women do. It is men, who usually shower their partners with gifts, hence the heavy credit card usage.

Furthermore, the things that cause men and women spend are different too. Women are more likely than men to buy things without needing it, to buy things on sale and to shop impulsively.

In fact, it is hard to compare spending habits of men and women. It all mostly depends on the source of their income. A single woman is likely to spend more than a married one. The same goes for men too. Spending habits also depend on one's profession. A company representative is likely to travel a lot, thus making purchases such as air tickets and hotel accommodation.

But when it all comes to credit card deals, sex does not matter. Men and women are equally eligible for credit cards. Nonetheless, card issuers are trying to segment market into 2 parts by offering cards that should be more useful for either men or women. Different reward programs are usually introduced to achieve that. Since men are more likely to spend on travel and entertainment, they are more likely to choose a card with frequent flyer scheme. Whereas women tend to shop for groceries and apparel more than men, thus, a cashback card would be more appropriate.