How to Upgrade Your Crypto Credit Score

CreDA is a credit rating agency not unlike Experian, Equifax, or Transunion — the three most popular credit bureaus. These major traditional consumer credit agencies access a users’ financial activity and credit history from a variety of real-world sources. They know how often a person pays his or her bills, how much money is in their bank account, and if they’ve ever defaulted on a loan.

People are jumping into virtual worlds, trading cryptocurrencies and organizing online in decentralized autonomous organizations (DAOs) while increasingly spending more time online than in real life. Until now, traditional credit bureaus ignored most of a person’s online activity, which is how and why CreDA came into play. But CreDA does more than calculate a Crypto Credit Score from on-chain data, it aims to bridge traditional finance and Decentralized Finance (DeFi) while providing new avenues for the world’s unbanked to grow their credit and gain access to capital.

In a recent interview, Fakhul Miah, CEO of CreDA, points out:

“What inspired me to join CreDA and why do I think it’s a game-changer? I, myself, came from humble beginnings where credit was not understood. People were very much living from paycheck to paycheck. As I was fortunate enough to join Morgan Stanley, I learned about credit and what it really means, and the opportunities it affords people. And what I would like to do is take all that experience and use it to drive CreDA forward and specifically help those unbanked and underserved individuals around the world.”

CreDA is a game-changer in driving the DeFi world forward. Without a credit system, DeFi is limited to over-collateralized lending and trading, which leads to the system’s inefficiency and hinders innovation.

Modernizing decentralized finance to use digital credit ratings has become an urgent task that is recognized by the World Bank and World Economic Forum. This is why CreDA offers a solution to move from centralized to decentralized and eventually a hybrid credit system based on the holistic combination of on and off-chain assets, risk profile, and behavior.

How Does a Crypto Credit Score Work?

Fakhul Miah says,

“CreDA is more than just a Crypto Credit Rating service. We see it as the trust architecture that will underpin the entire Web3 ecosystem across DeFi, SocialFi, GameFi, and the metaverse at large.”

CreDA can effectively analyze a user’s wallet without knowing who they are. The app does that through the users’ secure and anonymous digital identifiers (DID) and calculates a consumer credit score. The company analyzes the entire history because blockchain is essentially public and open-source.

It is also worth noting that there is no need for users to pass KYC checks, AML registration, etc. The user comes to CreDA, gets the credit score, and mints their Credit NFT (сNFT), which is pegged to the credit score and DID.

Through recent partnerships with CyberConnect and Project Galaxy, CreDA has also launched their Credit Network (cNetwork), which allows people with strong crypto credit scores to essentially lend their credibility to peers who seek better rates or guarantors for their own loans. CreDA has already incorporated the social graph data of hundreds of thousands of users in order to offer this innovative product.

How Is a Crypto Credit History Rated

When coming to CreDA, users wonder how they can get the most out of the designated сredit rating. To achieve this, one needs to understand how CreDA’s credit rating works, and how each user can improve their score in order to avail of better rates for lending and borrowing. This is an important feature of this app.

Over $250 billion in lending resources is already available in the DeFi ecosystem. This money works if it can be lent on fair terms, or on terms that the borrowers are willing to accept as fair.

Being honest and accurate borrowers, they only need to convince the lender. CreDA operates as a completely unbiased assessor or an unprejudiced observer. For this, a Crypto Credit Score is created and minted along with the DID as a credit NFT (cNFT). The CreDA protocol models risk profiles across the user base to offer personalized rates and services, making them more competitive as opposed to their industry peers.

How Is a Crypto Credit Score Generated

CreDA is built on Ethereum Layer 2 and sources data from across multiple chains, including Ethereum, Arbitrum, BSC (Binance Smart Chain), Fantom, Polygon, HECO (Huobi ECO Chain), and OEC. It connects with popular decentralized wallets like Essentials, TokenPocket, and Metamask, which are found in Apple and Android app stores, with additional wallet compatibility added regularly.

CreDA generates a credit score ranging from 0–1000 when users link their wallets to the CreDA oracle. With the help of a decentralized identifier (DID), this credit score is transferred to Credit NFT (cNFT), using the CREDA token. With a cNFT, a user’s entire credit experience is converted into proven credibility. The higher the level of cNFT, the more credit privileges user can receive. The Credit NFT (cNFT) pulls data across various protocols such as the user’s asset status, transaction records, social graph data and assesses a relative score.

The information is comprised of the record of an individual’s assets and liabilities, consumption habits, sources of income, how long a coin is stored in a wallet, the volatility of those coins, etc. The cNFT can be compared to the FICO rating of the US credit system or the Ant Points of Alipay in China.

The cNFT credit score can be used on all Web3 platforms and partner platforms. For example, it has a partnership with the FilDA cross-network lending platform. On FilDA, CreDA users receive exclusive lending rates, low or even no-collateral loans. CreDA allows users to upgrade and raise their individual credit rates whilst contributing to the evolution of trust in Web 3.0.

Future developments will extend the integration of on-chain and off-chain data so that CreDA becomes a gateway linking TradFi and DeFi and provides a holistic view of a person’s creditworthiness while protecting user privacy.

The Factors Affecting a Crypto Credit Score

CreDA’s credit scores are computed as a result of analyzing and modeling users’ behavior and their on-chain usage characteristics. When a user comes to CreDA, their decentralized ID (DID) is created and the modeling process begins automatically. Any on-chain user behavior impacts their credit rating.

There are common factors affecting the credit rating, such as:

  • Behavior accumulation,
  • Compliance and default records,
  • Diversity of assets and their volatility,
  • Participation in DeFi activities,
  • Trading networks, etc.

Users can build and improve their rating by focusing on these factors amongst others.

CreDA has plans for further product innovation. One example is the inclusion of social graph data into the Crypto Credit Score. This can eventually support the development of a loan funding pool where users can take on the relevant risks by creating an insurance pool that people could contribute into to support potential loan defaults. Pools with a higher risk of default could obtain an above-average return.


CreDA offers a real-time Crypto Credit Score that makes it possible for people to increase their credit scores by rewarding them for making positive contributions and on-chain behavior. The platform provides secure user identification and requires nothing more than an internet connection and a crypto wallet. This expands the possibilities for many people who are locked out of the traditional financial industry and who can’t access capital, car loans, or even gaming rewards. More importantly, CreDA provides the trust architecture needed to unlock capital for the billions of people without access to traditional banking. It lowers the barrier to entry through trusted credit scores and enables access to capital without the need for excessive collateral.

Visit to learn more about CreDA.

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CreDA is the world’s first decentralized credit rating service based on users’ on-chain data

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CreDA is the world’s first decentralized credit rating service based on users’ on-chain data