BTCJam Now Uses Credit Scores to Set Borrowers' Interest Rates
Bitcoin peer-to-peer lending network BTCJam has implemented a risk-based pricing model, changing the way it sets borrowing interest rates in an attempt to improve users' security. The model, widely used by lenders in the mortgage and financial services industries, sets the borrower's interest rate based upon their credit score; the higher the credit score, the lower the interest rate. A statement from the lending network, said: Since BTCJam has all of the information about the borrowers, we are in a better position to determine the likelihood of the borrower paying back the loan and will....
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