So what's the purpose of reputation loans, you ask? Is it just to take your money? The answer is certainly no, for several reasons:

• You can only have one reputation loan on our system, so once you've taken out one reputation loan you will not be able to create another one.
• Given the previous point, you're only spending your money once. This means that you can't "burn a bunch of money" indefinitely.
• Most reputation loans have a notoriously low interest rate, because investors know that you can't use (withdraw or invest) the funds from the loan and they'll bid each-other down just to get in on a 100% secured loan.
• The reputation loan can be as small as you want it to be, so you can end up paying less than a dollar in order to demonstrate to the lenders that you're can pay off a loan.

There are several reasons why the reputation loan are a good thing to have. The primary reason is to prove to investors that the borrower covers the minimal criteria required to successfully pay off a loan:

• The borrower can create a loan listing with the correct type.
• The borrower can navigate the website properly and repay the loan.
• The borrower has Bitcoin outside of the lending platform, which he/she can use to pay off interest.
• The borrower knows how to transact with Bitcoin. It might seem weird, but some borrowers have never handled Bitcoin before, yet they try to take out loans.
• The borrower proves the above 4 things with absolutely 0 risk to investors. After all, the investors shouldn't risk their money if the borrower is not able to at least meet the minimum criteria.

Why are these things important? Well, if the borrower doesn't understand loan types and descriptions, then he/she may inadvertently mislead the investors with their loan. If the borrower doesn't know how to repay a loan, then it may lead to the loan being late or default. This is the big one: if the borrower can't prove that they have Bitcoin outside of the lending platform, then it automatically puts in question their ability to repay a loan period. Finally, the borrower also proves that they can in fact transact with Bitcoin- you'd be surprised to find out that we've had people who simply have no clue how to work with Bitcoin, yet they want to take out a loan. There is no need for investors to risk their money just to find out if the borrower is able to do those basic things. The borrower only needs to prove that they cover the minimum requirements once, which is why we've limited the reputation loans to 1 per borrower.

Best Regards,
Kiril Gantchev
CEO of BitLendingClub
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not closed by admin ? by investors ? that mean your system is sucks.
also what the point  reputation loan for ? as long as the borrower pay the lenders is doesn't matter.
you think someone will scam for 0,5 BTC ? risk all ID card, facebook, risk good name , etc ?

also if you looked at my listing, I create a lot listings with small and medium loan nothing funded.
and then after waiting 2 month , my loan for 0,5 BTC get funded then suddenly that listing closed cause your system suck, what do you think I feel ?

also if investor think / vote my listing is reputation loan, why not change my loan category into reputation loan ? instead of deleting the list.

if you just change the listing loan into reputation loan, that's is good, it will be increase my repaid loan in my profile.

but you just deleted that's listing, that's is not good . also what reputation are for ?
there is lot of fake reputation on bitlendingclub. everyone can easy have 200 + reputation on BLC.
also scammers on BLC has lot of reputation points. reputation my ass.