As you may know BTCJam sets interest rates for borrowers based on creditworthiness that we uniquely calculate through statistical analysis with our credit scoring algorithm – this practice is called risk-based pricing. After careful consideration, we have determined that allowing borrower’s with an “E” grade is too risky for investors.
The repayment rate is very low for E’s because the borrower has not supplied enough information about themselves in order to be scored accurately. We do not display the ROI for E’s on our stats page; however, our internal calculations have concluded that the repayment is around 30% which we consider to be too dangerous for our investors.
E grade borrowers will be encouraged to verify more documents and connect accounts. We have a plethora of external accounts that can be connected that we use analysis on, and will most likely help them to be able to create a loan.
If you are an E borrower, improve your score now.