Unless you are experienced on the BTC Jam peer to peer lending platform, it is difficult for a newbie to get a Bitcoin loan funded. With such a low initial credit score, here are the steps you have to take to improve your credit score.
Take Out Small Reputation Loans First – Take out a small loan for 0.5 to 1.0 Bitcoin and offer 15% to 25% interest on the loan. Don’t offer interest lower than this, because the higher interest offsets the risk that you won’t pay back.
Complete Your Profile – Do everything you can to complete your profile on BTC Jam. Verify your credit score. Link your Facebook. Ask for references from Facebook. If you opt out of linking your credit score and social networking accounts, investors will think that you’re trying to scam them.
Pay Reputation Loans Back Fast – I like to have Bitcoins already in my BTC Jam account to pay back the reputation loans. As soon as the loan is funded, I pay it off. Paying the loan back fast will give you a high rating by investors and improve your credit score. Also, every loan you pay back on BTC Jam improves your credit score.
Pay Back any Outstanding Loans – Your credit score on BTC Jam is heavily based on your ratio of outstanding loans to payed off loans. Pay off any existing loans before you take out new loans.
Start Out as an Investor – Being an investor first on BTC Jam will give you more credibility in the community. It will also give you a higher feedback score from people that borrow Bitcoins from you. This extra feedback will improve your credit score.