Female customers considered ‘better payers’ than men
Female customers who take out personal loans are statistically more likely to repay their loans on time, according to a leading price comparison website.
Referring specifically to the high-cost loans, there are around 3 million people that use unsecured emergency loans every year. Households can feel the pressure as payday approaches and this can be brought upon by a sudden household emergency, medical bill, broker boiler or car repair. The average amount borrowed is around £300 which is designed to fill the gap before their next pay date.
Whilst the default rate for high-cost loans is typically around 10% to 15% depending on the lender, the number of those females who have missed payments or fall into arrears is around 25% lower than male customers, research shows.
The survey reviewed over 10,000 customers across the UK who had borrowed money online in the last year and had a minimum loan term of 3 months.
A spokesman from Payday Bad Credit commented: “There have been several companies who have been aware of this trend for years and have made their marketing more focused on women. QuickQuid typically uses women in their adverts and Cash Lady set up specifically to target this demographic.’
‘In some cases, women will have a preference in underwriting too, whereby the systems created by lenders will be automated to give better scoring to female customers and this could maximise their chances of getting a loan, subject to status and affordability.’
‘In terms of collections, women are more sensitive to follow-up letters and phone calls and are typically quicker to pay their debts as a result. Men, however, may be less sensitive to subsequent payment reminders. This might be a slight generalisation, but the figures are consistent that females are more likely to repay on time.”
A spokesman from All The Lenders commented: “Featuring over 50 UK lenders, we do not have providers asking specifically for male or female customers. However, with high-cost loans, people should take time to compare loans effectively since this could save them money. In particular, paying off a loan early can save you money – so being on top of your finances is always advised.”