Sequin Blog
Credit
Your Credit Score and What To Know As a Woman.
November 13, 2023
At Sequin, we know that there are so many costs to being a woman — and credit shouldn’t be one of them. As we interviewed women about their credit experiences, one ask that kept coming up is a desire to understand how your credit score is calculated and how to improve it.
Here’s how we answered.
Your credit score is extremely important. Your credit score is pulled any time you go to take out a loan, such as a revolving line of credit (like a credit card) or an installment loan (student loan, business loan, car loan, mortgage). Sometimes, employers or landlords will pull your credit report to check to see that you are trustworthy, organized, and responsible. If your credit score is low, lenders view you as risky and are more likely to charge you a higher interest rate that could cost you many thousands of dollars over your lifetime.
FICO is the most common credit scoring tool. In fact, 90% of lenders use FICO to determine whether or not someone is creditworthy. While FICO illuminates the high-level factors that go into your credit score, we get that it is challenging to understand exactly what each of these factors are and what you can do about it.
Know your FICO
We’ve created a visual to help. Because we live in a world in which FICO is king, and because a great credit score unlocks opportunities, we believe it is extremely important that women get their FICO score as high as possible. That said, you’ll notice from our infographic that the way that FICO is calculated disadvantages women not because the algorithm itself is biased, but because it relies on inputs that reflect societal injustices.
Disclaimer:
Opinions expressed here are author's alone, not those of any bank, credit card issuer, airline or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities.
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1 Sequin Consumer Deposit Account Agreement
2 With a Sequin High-Interest Checking Account (available to Sequin Members), you get up to four international ATM fee reimbursements per month, up to $20.00. Sequin Members will receive their reimbursement by the 10th day of the following month.
3 Sequin Member results are based on a 2022 study of 100 participants over a period of three weeks. Results may vary.
Sources:
|| Women have more anxiety about finances than men, Morning Consult Pro, 2024
|| 14% of women go into debt for beauty, Lending Tree, 2023
|| Women are less likely to invest our assets, Magnify Money, 2019
|| Women pay higher interest rates and more in fees - while investing less, FINRA, 2012
|| Debit cards don’t usually earn rewards, Banks.com, 2024
|| Women pay 30% more in overdraft fees as compared to men, BankingDive, 2019
|| Most cards are black and blue, CanStar, 2022
|| Women were granted rights to bank accounts and debit cards only 50 years ago, Forbes, 2023
|| Sequins were a Venetian gold currency until, over time, the reflective metals became decorative accents, Research Gate, 2013
|| Everyday products and services cost women $188,000 more over our lifetimes, BankRate, 2023
|| Women pay more for the same everyday goods and services, such as razors, deodorant, and hair care 42% of the time, DailyCampus, 2024
|| We've selected "Pink Tax" categories based on where women typically spend more on everyday products and services, GoBankingRates, 2024
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