Cryptocurrency Lenders To Check Credit Reports
Consumers are now able to provide blockchain companies access to their personal credit scores through the security firm Spring Labs. Specifically, DCA members TransUnion and VantageScore will provide scores to allow cryptocurrency investors to borrow based on their creditworthiness.
This move opens up new opportunities for consumers. The ability for lenders to check a borrower’s creditworthiness may result in borrowers receiving loans under better terms than they could otherwise get, i.e. without requiring collateral. By providing credit and identity data on the blockchain, more consumers will be able to participate in the crypto market while remaining compliant with regulators.