Interest Rates
Crowd.Credit interest rates are determined by your graduation tier and CrowdProof reputation score. Higher tiers and better scores unlock lower APRs.
Base APR by Tier
| Tier | Base APR | Effective Range |
|---|---|---|
| SECURED_ONLY | 18.99% | 15.99% - 18.99% |
| BUILDING | 15.99% | 12.99% - 15.99% |
| ESTABLISHED | 12.99% | 9.99% - 12.99% |
| PRIME | 9.99% | 6.99% - 9.99% |
| PREMIUM | 6.99% | 3.99% - 6.99% |
Score-Based Discounts
Within each tier, your CrowdProof score provides an additional discount on the base APR:
| Score Range | Discount |
|---|---|
| Tier minimum - +49 | 0% (base rate) |
| +50 - +99 | -1.0% |
| +100 - +149 | -2.0% |
| +150+ | -3.0% |
Example: A PRIME user (base 9.99%) with a CrowdProof score of 820 (100 points above tier minimum of 720) receives a 2.0% discount, resulting in an effective APR of 7.99%.
How Interest Accrues
Interest accrues daily on your outstanding balance using the following formula:
Daily Interest = Outstanding Balance * (APR / 365)
Interest is calculated at the end of each day (00:00 UTC) and added to your billing cycle total. You are not charged interest on any balance repaid before the end of the billing cycle.
Grace Period
All tiers enjoy a 21-day grace period from the statement date. If you pay your full statement balance within the grace period, no interest is charged for that billing cycle.
APR Categories
| Transaction Type | APR Modifier |
|---|---|
| Standard purchases | Base APR |
| Cash advances (ATM) | Base APR + 5.0% |
| Balance transfers | Base APR - 2.0% (promotional, first 90 days) |
Rate Adjustments
Your APR is recalculated:
- Monthly based on your current CrowdProof score
- Immediately upon tier promotion (rate improves)
- After grace period upon tier demotion (rate may increase)
Rate changes apply only to new balances. Existing balances continue at the APR in effect when they were incurred, unless you are demoted due to defaults.
Yield Offset
A unique advantage of Crowd.Credit: your deposits earn yield while serving as collateral. This effectively reduces your net cost of borrowing:
Net Cost = Interest Paid - Yield Earned
Example: You have $10,000 in USDC deposits earning 4.5% APY, and a $5,000 credit balance at 9.99% APR.
- Annual interest cost: $5,000 * 9.99% = $499.50
- Annual yield earned: $10,000 * 4.5% * 65% = $292.50
- Net annual cost: $207.00 (effective 4.14% APR)
Comparison with Traditional Credit
| Feature | Crowd.Credit (PRIME) | Traditional Credit Card |
|---|---|---|
| APR | 6.99% - 9.99% | 18% - 29% |
| Grace period | 21 days | 21-25 days |
| Yield on collateral | Yes (3-8% APY) | No |
| Transparent scoring | Yes (on-chain) | No (proprietary) |
| Global access | Yes (any EVM wallet) | Country-dependent |