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. The content on this page is accurate as of the posting date however since then some of the offers may have expired. Please see the bank's website for the most current credit card offers.
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Sequin is a financial technology company and is not a bank. Banking services provided by Thread Bank, Member FDIC.
The Sequin Rewards Visa® Debit Card is issued by Thread Bank pursuant to a license from Visa U.S.A. Inc. and may be used anywhere Visa cards are accepted. FDIC insurance is available for funds on deposit through Thread Bank, Member FDIC.
Your deposits qualify for up to a maximum of $3,000,000 in FDIC insurance coverage when placed at program banks in the Thread Bank deposit sweep program. Your deposits at each program bank become eligible for FDIC insurance up to $250,000, inclusive of any other deposits you may already hold at the bank in the same ownership capacity. You can access the terms and conditions of the sweep program at https://go.thread.bank/sweepdisclosure and a list of program banks at https://go.thread.bank/programbanks. Please contact customerservice@thread.bank with questions regarding the sweep program.
+ Terms and conditions apply to the cashback rewards program. See http://sequincard.com/rewards-terms for details. Cashback rewards earned will be credited to your account on the second day of the month. ATM transactions, the purchase of money orders or cash equivalents, and account funding made with your debit card are not eligible for cashback. Please refer to the Rewards Terms and Conditions for more details. No minimum opening deposit required to open a Sequin High-Interest Checking Account & $25 minimum opening deposit required for a Sequin Rewards Checking Account.
Earn cashback rewards at a rate of 6% on "Pink Tax Categories" in a calendar month in which you spend at least $500 on the Sequin Visa® Rewards Debit Card. If you make less than $500 in settled debit transactions on the Sequin Visa® Rewards Debit Card in a calendar month, you earn cashback rewards on debit transactions at a rate of 0.5% cashback on “Pink Tax Categories”.
§ We are not affiliated, associated or endorsed by the brands we list on sequincard.com. All names, marks, emblems and images are registered trademarks of their respective owners. Any product names, logos, brands, and other trademarks or images featured or referred to within the Sequin website (sequincard.com) and/or on any social media forum are the property of their respective trademark holders. We declare no affiliation, sponsorship, nor any partnerships with any registered trademarks.
† The interest rate on your account is 3.50% with an Annual Percentage Yield (APY) of 3.56% for a Sequin High-Interest Checking Account, and 1.00% with an Annual Percentage Yield (APY) of 1.01% for a Sequin Rewards Checking Account effective as of 01/04/2024. Rate is variable and is subject to change after account opening. Rate is compounded daily and credited monthly. No minimum deposit required to open a Sequin High-Interest Checking Account & $25 minimum deposit required for a Sequin Rewards Checking Account. Fees may reduce earnings.
National average bank interest rate is 0.07% APY as of October 2023. Obtained from the FDIC.
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 University, Credit Tools, and Perks are not affiliated with Thread Bank. 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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