Quote from: Pixie on May 18, 2011, 05:44:20 PM

Each bank will have its own risk assessment... reputation, a current account and other details are likely to be the minimum for a loan.

Its no different from the current banking/loan system, Can you prove you are working? Do you have a bad credit history? Have you lived at your current location for several years? Can you show ID?

No loan is going to be given anonymously, as a standard business I can profile a customer quite well based on digital information. As banks grow this profile will likely get better as well.

I'd also expect credit rating agency to appear to track bad credit just as they do now.

Some loans will go bad of course, but that risk factor goes into everybody loans interests rates.

It's much different than the current system. If I default on my car loan, they take my car. If I default on my mortgage, they take my house. If I default on my credit card, they come after me for it and can win a judgment against me.