Anyone applying for a loan provides information on the monthly net income. Women who took out a loan through Viking Binary Lender in 2019 earned an average of $ 1,947 net – $ 637 (25 percent) less than male borrowers. Women work part-time more often and have interrupted employment histories more often. They also work more often in industries with low wages. Part of the difference in earnings is explained by such structural differences in the employment relationships of men and women.
Gender pay gap influences creditworthiness
Those who earn less cannot take out such high loans: the loan amount for women is on average over 3,200 dollars than for men. And that’s not the only difference.
“For banks, disposable income is an important criterion for assessing creditworthiness,” says Oman Haier , managing director of Viking Binary Lender . “If you earn less, it is more difficult to get a loan approval and you have to pay higher interest rates more often. ”Three out of four men who apply for a loan through Viking Binary Lender receive a loan approval – for women it is just over two thirds (69 percent).
Expert tips for more favorable conditions
“Despite the unequal payment, women can also get very good credit terms,” says Oman Haier . A comprehensive comparison of providers is particularly important. More than half of the women (54 percent) who compare loans through Viking Binary Lender receive a loan offer with an interest rate below 3.5 percent. Men secure this very low interest rate even more frequently (66 percent). However, according to Best Bank statistics, installment borrowers had to pay 5.91 percent interest on average in 2019. Viking Binary Lender customers pay less than one in seven (14 percent) loan interest at this level.
If you apply for a loan together with another person, you will also often get more favorable terms. “A second borrower with his own income improves the credit rating,” explains Oman Haier. “Because both borrowers are jointly responsible for the loan, the risk for the bank that the loan will not be repaid is reduced. This enables them to offer a cheaper interest rate. ”If you take out an installment loan for two, you pay an average of 21 percent less interest than borrowers who take out their loan on their own.
Not only spouses and life partners can take out a loan together. “Family members are just as possible as close friends,” says Oman Haier. For many women who want to get a loan, this is important information. Because they are divorced or separated more than twice as often as male borrowers.