How Loan Defaults Impact Your BlackSwan Credit Score

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How Defaults Are Recorded

• The wallet’s defaults count increments by one
• The defaulted amount is excluded from totalRepaidUsd
• The Trust Ratio is recalculated to reflect the default

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Impact on Your Credit Profile

• Lowers your Trust Ratio — Your core creditworthiness score decreases, potentially significantly depending on your existing history.
• Can lower your Trust Tier — A drop in Trust Ratio may move you into a lower letter tier (e.g., from B to C or D), affecting how lenders perceive your risk profile.
• Increases your APR — A lower trust tier results in a higher borrowing cost on future loans, directly increasing the price you pay to borrow.

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Recovering from a Default

1. Resuming borrowing with small loans — Smaller loans are easier to repay and each successful repayment contributes positively to your score.
2. Repaying every loan on time — Consistent on-time repayment gradually improves your successfulLoans count relative to your defaults count.
3. Increasing volume over time — As your repayment track record grows, larger successful loans contribute more meaningfully to score recovery.

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Checking Default Count Before Lending

import { BlackSwanClient } from "blackswan-sdk";

const client = new BlackSwanClient({ apiKey: "YOUR_API_KEY" });

const history = await client.getCreditHistory("0xBorrowerWalletAddress");

if (history.defaults > 0) {
  console.log(`Warning: This wallet has ${history.defaults} recorded default(s).`);
} else {
  console.log("No defaults on record. Borrower has a clean repayment history.");
}

from blackswan import BlackSwanClient

client = BlackSwanClient(api_key="YOUR_API_KEY")

history = client.get_credit_history("0xBorrowerWalletAddress")

if history["defaults"] > 0:
    print(f"Warning: This wallet has {history['defaults']} recorded default(s).")
else:
    print("No defaults on record. Borrower has a clean repayment history.")

curl -X GET "https://api.blackswan.finance/v1/history/0xBorrowerWalletAddress" \
  -H "Authorization: Bearer YOUR_API_KEY"