Accessible Version
A Note on Gender Differences in Credit Card Limit Changes, Accessible Data
Figure 1. Magnitude of Credit Limit, by Gender
This 4-panel figure shows monthly estimates for bankcard credit limit changes 3 months before and 6 months after a credit limit change that coincides with no change to the total number of bankcard accounts. Each panel has estimates for female borrowers, represented by blue triangles, and male borrowers, represented by red circles. Panel A shows the estimated magnitudes of a credit limit decrease in dollars; panel B shows the estimated magnitude of a credit limit decrease in percent terms, measured as a percent change from the previous month; panel C shows the estimated magnitude of a credit limit increase in dollars; and panel D shows the estimated magnitude of a credit limit increase in percent terms, measured as a percent change from the previous month. All results in Figure 1 are derived from the nonparametric event study specification in the main text. All reported standard errors are heteroskedasticity-robust. The confidence intervals are 95 percent confidence intervals for each estimated event time coefficient. Panel A shows a statistically significant downward drop at event time 0 for both genders, relative to the month before the limit decrease, and a slightly positive trend in the 6 months after time 0. Panel B shows a statistically significant negative percent change at event time zero and positive, but statistically insignificant percent changes in months 1 to 6; a slightly larger percent increase in event time 1 for female borrowers and event time 2 for male borrowers are both statistically significant. Panel C shows a statistically significant increase at event time 0 for both genders, and a flat trend in the 6 months after the limit increase. Panel D shows a large, positive percent change at event time zero and a positive, marginally significant event time coefficients in months 1 to 6.
Note: Authors' calculations using Home Mortgage Disclosure Act (HMDA) data, ICE McDash loan servicing data, and Equifax Credit Risk Insight Servicing ICE McDash data. Demographic information comes from the HMDA data. Dashed lines are 95 percent confident intervals for males, dotted lines are 95 percent confidence intervals for females. Time is measured in months. Percent in panels B and D is measured between 0 and 1. The vertical red line separates months before and after the limit change.
Figure 2. Limit Increases in Recessionary and Recovery Period, by Gender
This 4-panel figure shows monthly estimates for bankcard credit limit changes 3 months before and 6 months after a credit limit increase that coincides with no change to the total number of bankcard accounts. We separately examine credit limit increases that either occur from April 2008 to April 2009 ("recessionary period") or from May 2009 to December 2017 ("recovery period"). Each panel has estimates for female borrowers, represented by blue triangles, and male borrowers, represented by red circles. Panel A shows the estimated magnitudes of a credit limit increase in dollars for the recessionary period; panel B shows the estimated magnitude of a credit limit increase in percent terms, measured as a percent change from the previous month for the recessionary period; panel C shows the estimated magnitude of a credit limit increase in dollars for the recovery period; and panel D shows the estimated magnitude of a credit limit increase in percent terms, measured as a percent change from the previous month for the recovery period. All results in Figure 2 are derived from the nonparametric event study specification in the main text. All reported standard errors are heteroskedasticity-robust. The confidence intervals are 95 percent confidence intervals for each estimated event time coefficient. Panel A shows a statistically significant increase at event time 0 for both genders during the recessionary period, relative to the month before the limit decrease, and a negative trend in the 6 months after time 0. Panel B shows a statistically significant positive percent change at event time zero during the recessionary period and a flat and statistically insignificant percent changes in months 1 to 6. Panel C shows a statistically significant increase at event time 0 for both genders during the recovery period, and a flat trend in the 6 months after the limit increase. Panel D shows a large, positive percent change at event time zero during the recovery period and a positive and statistically insignificant event time coefficients from months 1 to 6.
Note: Authors' calculations using Home Mortgage Disclosure Act (HMDA) data, ICE McDash loan servicing data, and Equifax Credit Risk Insight Servicing ICE McDash data. Demographic information comes from the HMDA data. Dashed lines are 95 percent confident intervals for males, dotted lines are 95 percent confidence intervals for females. Time is measured in months. Percent in panels B and D is measured between 0 and 1. The vertical red line separates months before and after the limit change.
Figure 3. Limit Decreases in Recessionary and Recovery Periods, by Gender
This 4-panel figure shows monthly estimates for bankcard credit limit changes 3 months before and 6 months after a credit limit decrease that coincides with no change to the total number of bankcard accounts. We separately examine credit limit increases that either occur from April 2008 to April 2009 ("recessionary period") or from May 2009 to December 2017 ("recovery period"). Each panel has estimates for female borrowers, represented by blue triangles, and male borrowers, represented by red circles. Panel A shows the estimated magnitudes of a credit limit decrease in dollars for the recessionary period; panel B shows the estimated magnitude of a credit limit decrease in percent terms, measured as a percent change from the previous month for the recessionary period; panel C shows the estimated magnitude of a credit limit decrease in dollars for the recovery period; and panel D shows the estimated magnitude of a credit limit decrease in percent terms, measured as a percent change from the previous month for the recovery period. All results in Figure 3 are derived from the nonparametric event study specification in the main text. All reported standard errors are heteroskedasticity-robust. The confidence intervals are 95 percent confidence intervals for each estimated event time coefficient. Panel A shows a statistically significant decrease at event time 0 for both genders during the recessionary period, relative to the month before the limit decrease, and a positive trend in the 6 months after time 0. Panel B shows a statistically significant negative percent change at event time zero during the recessionary period, which is followed by a statistically significant percent change increase in month 1, followed by statistically insignificant percent changes in months 2 to 6. Panel C shows a statistically significant decrease at event time 0 for both genders during the recovery period, and a slightly positive trend in the 6 months after the limit increase. Panel D shows a statistically significant negative percent change at event time zero and positive, but statistically insignificant percent changes in months 1 to 6; a slightly larger percent increase in event time 1 for female borrowers and event time 2 for male borrowers are both statistically significant.
Note: Authors' calculations using Home Mortgage Disclosure Act (HMDA) data, ICE McDash loan servicing data, and Equifax Credit Risk Insight Servicing ICE McDash data. Demographic information comes from the HMDA data. Dashed lines are 95 percent confident intervals for males, dotted lines are 95 percent confidence intervals for females. Time is measured in months. Percent in panels B and D is measured between 0 and 1. The vertical red line separates months before and after the limit change.