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Cryptocurrency users and FICO scores.

Hex
Established Contributor

Cryptocurrency users and FICO scores.

I think this is interesting. Sometimes I think about buying crypto but I'm too risk averse. Hopefully my risk averse tendencies will help my FICO scores. 

 

https://www.stilt.com/blog/2021/02/crypto-growth-driven-by-low-fico-users/

Message 1 of 9
8 REPLIES 8
rgninja
Regular Contributor

Re: Cryptocurrency users and FICO scores.

I wish that article figured the age of the average crypto holder into the equation. I think crypto skews toward younger investors who probably haven't had a chance to build a strong credit profile yet.


Moving away from big banks and building my credit union relationships
Message 2 of 9
iced
Valued Contributor

Re: Cryptocurrency users and FICO scores.

 


@rgninja wrote:

I wish that article figured the age of the average crypto holder into the equation. I think crypto skews toward younger investors who probably haven't had a chance to build a strong credit profile yet.


I think one's score if they have a short but uneventful credit history is in the low 700s; there has to be actual negative activity on one's report (such as high utilization or missed payments) to get a score in the low 600s. That is, I would contend that these people, while young, have also made some credit mistakes already.

Message 3 of 9
1CreditEd
Regular Contributor

Re: Cryptocurrency users and FICO scores.

A bit scary that they are running analytics on Coinbase users credit scores..

 

1. Real crypto users/enthusiasts do not keep their balances on Coinbase.. That's for newbs and is a very bad decision..

 

2. Likely people let their cc balances run up in order to buy more Bitcoin..

Wish I would have maxed out all my cards to buy Bitcoin in early 2020..

Still wouldn't have kept my coin on Coinbase, even if that's where I bought it..

Message 4 of 9
KatSoDak
Regular Contributor

Re: Cryptocurrency users and FICO scores.


@1CreditEd wrote:

 

Still wouldn't have kept my coin on Coinbase, even if that's where I bought it..


How do you move it off Coinbase?



Citi | Discover | HSBC | BOA (2) | NFCU | WF (2) | Simmons Bank | FNBO (2) | BBVA | Lowes | Care Credit | Home Depot AU
Message 5 of 9
1CreditEd
Regular Contributor

Re: Cryptocurrency users and FICO scores.

Move it to an address you control your own keys to..

 

I like ledger hardware wallets or other cold storage options myself..

 

Google Bitcoin cold storage..

Message 6 of 9
ghost-cell
Valued Member

Re: Cryptocurrency users and FICO scores.

That is interesting CB is even allowed to see users' credit scores. Makes me wonder if they'll offer a credit card any time soon, like how Gemini is. Maybe a CB credit card would target "everyday" people instead of being like the crypto.com cards that potentially require you to stake money in the tens to hundreds of thousands 

Have -



Want - Chase Freedom Flex, Chase Amazon, Navy Federal Flagship, Fidelity Visa, US Bank Cash+, Venmo



Message 7 of 9
RootDet
Frequent Contributor

Re: Cryptocurrency users and FICO scores.

Coinbase offering a card to compete with Gemini will indeed be interesting. I do agree the crypto.com card is pretty crappy, but it does fit a need because anytime you "sell/spend" crypto, it is considered a taxable event. 



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Azza
Regular Contributor

Re: Cryptocurrency users and FICO scores.

Read through the article. Do we know the age of these users?

Low FICO could be new to credit.
Currently Reporting:



Current Score:

Gardening Started with:


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