Understanding your credit score

Your Localcredit score is a single number between 1 and 1000 that represents your financial reliability based on observable, verifiable behavior. The higher the score, the more trust you’ve earned and the better opportunities (loans, rates, limits) you can unlock across apps and lenders. Unlike traditional credit scores, Localcredit is:

• Portable – it follows you across countries, chains, and platforms.

• User-owned – no company controls or monetizes your data.

• Privacy-preserving – built with zero-knowledge proofs.

• Progressive – you start earning points immediately and can improve over time.

How the Score is CalculatedThe score uses this formula:

S = 100 × (w_I × I + w_B × B + w_C × C - w_R × R) / Σw

All inputs are normalized (0–1) and combined with weights that reflect real-world predictive power.

Component	Weight	Impact Level	What It Measures	How to Improve
Repayment & Obligation Fulfilment	0.40	Highest	Timely loan repayments, recurring payments, bill fulfillment, and recovery after difficulty	Repay loans fully and on time; set up recurring payments; avoid defaults
Behavioral Consistency & Continuity	(part of above)	Highest	Regular activity, wallet age, stable transaction patterns, resilience across market cycles	Use your wallet consistently; receive income regularly; maintain long-term activity
Identity Strength & Persistence	0.20	Medium	Verified channels (email, phone, X, traditional credit, KYC) and durable linkages	Verify email/phone/X; connect traditional credit; complete optional KYC
Cross-Context Continuity	0.20	Medium-Low	Consistent responsible behavior across multiple wallets, chains, apps, and environments	Link additional wallets; stay reliable across different protocols
Risk Deductions	0.20	Subtractive	AML flags, extreme volatility, or negative signals	Avoid high-risk patterns; resolve any flagged issues

Time Sensitivity Recent actions have stronger influence, but long-term positive history provides stability and forgiveness for short-term issues. Example Score BreakdownHere’s what a score of 780 might look like:

• Repayment & Behavioral Consistency: 320/400

• Identity Strength: 160/200

• Cross-Context Continuity: 150/200

• Risk Deductions: -50/20

→ Total: 780/1000 What if you dont want to link KYC/AML, socials or something else? Fully inclusive:

• You can achieve a usable score (500 - 700+) with just a wallet and good on-chain behavior.

• Adding optional boosters (phone, traditional credit, KYC) accelerates growth but is never required.

• The dashboard always shows your biggest available boost so you can decide what’s worth it.

Transparency:

• Tap any activity in your feed to see the exact on-chain transaction, block explorer link, ZK proof, and plain-English explanation of why points were added or deducted.

• No mystery, you always know exactly how your score moves.

Consistent responsible behavior is the fastest path to a high score.