Does using Sima affect a borrower's credit score?

Jun 11, 2020

We do not report credit relationships on Sima to credit reporting agencies (CRAs).

Here's why

Credit scoring is used by arms-length lenders to evaluate people who they don't know personally and may have limited or no access to information about. They offer a standardized mechanism for evaluating the credit-worthiness of a potential borrower. These evaluations are pretty good and can, for the most part, be trusted.

While this works in many cases and has made credit vastly more accessible to most people, widespread reliance on credit reporting effectively excludes individuals with non-standard employment or living situations from credit access.

Our goal with Sima is to enable access to credit for people whose network believes they are entirely credit-worthy, but who the standard lending system would not serve well.

Additionally, while Sima does have some visibility into the state of loans made on the platform, we do not lend ourselves, nor do we enforce credit relationships. CRAs generally only accept credit information from direct lending businesses.

Some lenders may desire an external risk of credit damage if the borrower does not repay loans facilitated through Sima. If this is the case for you, Sima does not meet your needs in its current form.