Encrypto Credit Line
A revolving credit line that doesn't require collateral. Borrow, spend, repay — like a traditional credit card, but powered by on-chain underwriting.
How It's Different
Traditional credit cards require a FICO score, a Social Security number, and a US address. That excludes most of the world. Encrypto's credit line is underwritten using on-chain data and account behavior — accessible to anyone with a demonstrated financial history on-chain.
Underwriting Model
Encrypto's credit engine evaluates a composite score based on:
On-Chain Signals
- Wallet age and activity. How long has the wallet been active? Consistent activity signals reliability.
- Asset diversity. A diversified portfolio suggests financial sophistication.
- DeFi history. Previous lending/borrowing behavior, repayment track record, no liquidation history.
- Transaction volume. Regular, non-wash-trade transaction patterns.
Encrypto Account Signals
- Account age. How long the user has been on Encrypto.
- Spending history. Consistent card usage and repayment.
- Points tier. Higher-tier users (more engagement) qualify for higher limits.
- KYC verification level. Full verification unlocks higher limits.
External Signals (Optional)
- Traditional credit bureau. For users who opt in, we can factor in traditional credit data to boost their limit.
- Employment verification. Optional, can increase credit line.
Credit Line Parameters
| Parameter | Value |
|---|---|
| Starting limit | $500 - $5,000 |
| Max limit | $50,000 (tier-dependent) |
| Interest rate | 12-24% APR (score-dependent) |
| Min payment | 2% of balance or $25, whichever is greater |
| Payment cycle | Monthly |
| Grace period | 25 days (no interest on new purchases if paid in full) |
| Late fee | $15 |
How It Works
- Apply. Opt in from your Encrypto dashboard. No paperwork — underwriting is automatic.
- Get approved. Credit line amount is determined by your composite score. Instant decision.
- Spend. Your Encrypto Card now has a credit component. Spend up to your credit limit even with a $0 USDC balance.
- Statement. Monthly statement with all credit transactions, interest charges, and minimum payment.
- Repay. Pay from your USDC balance, bank transfer, or any supported crypto.
Why This Matters for LATAM
In Latin America, credit card penetration is under 30% in most countries. Millions of people with stable income and spending capacity can't access credit because traditional scoring infrastructure doesn't cover them.
Encrypto's on-chain underwriting model doesn't care where you live, what language you speak, or whether your country has a credit bureau. If you have demonstrable on-chain financial activity, you can access credit. That's a fundamentally different approach to financial inclusion.