What’s a Crypto Credit Score?
— Lending, Crypto, Defi, Score, Scores, Credit, Data, Assets, Transaction, Traditional — 1 min read
Crypto credit scores are in some ways fairly similar to the traditional credit scores issued by TransUnion, Equifax and Experian. They take into account your crypto assets, transaction history, spending habits and asset growth over time. They can be used by both DeFi lending protocols and FinTech lenders to provide uncollateralized loans or lines of credit. In many ways, crypto credit score issuers operate as trusted third parties of the type bitcoin and crypto in general were supposed to make unnecessary. They collect information from people, who must provide identifying data and access to the details of their holdings. This is important, especially in crypto lending, where there is no centralized review of potential borrowers — oracleacle requirements — to do such a thing. Source