@creditclub
FAQ (pt2)
how do you determine credit scores?
- this is not simply scores, it's real $ credit.
who should i trust?
- that's entirely up to you.
whats the apr?
- 5% / yr + 0.5% fee
why?
- creates a source of credit independent of banks & credit agencies
- give everyone the ability to underwrite the people & businesses they trust
what if someone doesn't repay?
- if a borrower doesnt make at least an interest payment 30 days after they borrow then the debt will be marked overdue, and then written off 60 days after that using the stake. Trust is not risk free.
what if they repay?
- your stake is unlocked and you earn rewards for them actively using your stake. So it's very positive sum as long as people dont default on their friends.
why should i use this over a credit card?
- the questions more "when" should you use this. For monthly expenses where you repay the card at the end doesnt make sense.
- Currently makes most sense for larger expenses you plan to pay off over 1-12 months.
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