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Understanding how different scoring models weigh Credit Score Factors can help you make smarter borrowing and financial decisions.
Interest rates represent the cost of borrowing money.

Understanding how different scoring models weigh Credit Score Factors can help you make smarter borrowing and financial decisions.

Understanding how different scoring models weigh Credit Score Factors can help you make smarter borrowing and financial decisions.

Understanding how different scoring models weigh Credit Score Factors can help you make smarter borrowing and financial decisions.

Understanding how different scoring models weigh Credit Score Factors can help you make smarter borrowing and financial decisions.

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Understanding how different scoring models weigh Credit Score Factors can help you make smarter borrowing and financial decisions.

Understanding how different scoring models weigh Credit Score Factors can help you make smarter borrowing and financial decisions.
Interest rates represent the cost of borrowing money.

Credit scores are a significant part of the modern finance system, as they determine whether you can get loans, credit cards or favourable interest rates. When you check your credit score, you will notice that you have a different three-digit number based on whether you accessed the information online, through your banking app or through another means. Though you may have more than one credit score, they’re mainly calculated by two companies: VantageScore and FICO.

These two companies control the US credit scoring market. They are the two most common credit scoring models used by most lenders to determine how well you are managing your credit. Both these companies create scores that can be used by lenders and creditors to assess applicants and manage customers’ accounts.

However, VantageScore and the FICO models use slightly different credit score factors to calculate the scores, which results in a different final number.

Knowing how these models work and the factors that calculate credit scores can help you improve your financial situation and avoid surprises when applying for credit.

How FICO Calculates Credit Scores

FICO credit scores have been around for more than 25 years and remain the most widely used scoring model. About 90% of the top lenders in the United States rely on FICO credit scores to assess a borrower’s credit risk.

To generate a FICO score, a person’s credit history usually needs to be at least six months old. While these scores are commonly used when applying for credit cards, mortgages or auto loans, the model assigns different weightage to the factors it evaluates.

Payment history carries the highest importance at 35%, followed by amounts owed at 30%. The length of credit history contributes 15%, while credit mix and new credit activity each account for 10%, reflecting how lenders prioritise repayment behaviour and responsible credit usage when assessing creditworthiness.

How VantageScore Calculates Credit Scores

VantageScore calculates credit scores by analysing several key behavioural indicators, with the most influential factors being balances, available credit and total credit usage. This is followed by credit mix and overall credit experience. Payment history is considered moderately influential, while newer accounts and the length of credit history carry less weight in the scoring model.

Developed in 2006 by the three major credit bureaus, Experian, Equifax and TransUnion, the VantageScore system is widely used by both financial and non-financial institutions for products such as credit cards, auto loans, mortgages and tenant screening.

The model can also include alternative data like rent and utility payments when building a credit profile, and it is capable of generating a score once a credit account has been active for at least one month.

FICO Vs VantageScore: How The Two Scoring Systems Are Built

Though both scoring systems aim to measure how likely someone is to repay borrowed money, their models are not identical.

The VantageScore system uses a single tri-bureau model that works across credit reports from Experian, Equifax and TransUnion. FICO develops bureau-specific versions of its scoring models. This means that even if the score version has the same name, there can be slight variations depending on which credit bureau’s data is used.

Eligibility To Generate A Credit Score

The two systems also differ in how much credit history is needed before they can generate a score.

FICO generally requires at least one credit account that is six months old, along with some activity in the last six months. VantageScore is more flexible and can generate a score if your credit report shows at least one account, even if it is newer than six months.

But neither system will generate a score if the credit report indicates that the consumer is deceased.

Score Bands And What They Mean

Across most scoring models, a higher number indicates lower credit risk, which is why lenders usually offer better interest rates and terms to borrowers with higher scores.

Standard FICO scores usually range from 300 to 850, while some industry-specific FICO scores can range from 250 to 900.

Earlier versions of VantageScore used a 501 to 990 scale, but newer versions, such as 3.0 and 4.0, now use the same 300 to 850 range as standard FICO scores.

What Is Considered A Good Credit Score

What qualifies as a good credit score can vary depending on the lender and the type of credit you are applying for. But on the common 300 to 850 scale, a score of around 670 is generally considered good under FICO standards, while a score of about 700 is usually viewed as good under VantageScore.

How to Improve Your Credit Score Factors

Improving credit scores involves consistent habits rather than quick fixes. Paying bills on time is critical, since payment history carries a lot of weight. Reducing credit card balances helps improve utilisation ratios. Maintaining older accounts can extend credit history, while avoiding frequent new credit applications prevents unnecessary score drops. These steps strengthen the core credit score factors used by both scoring models.

Overall, whether it is VantageScore or FICO, improving and maintaining a strong credit score largely comes down to three habits. Those habits are paying your bills on time, keeping outstanding balances as low as possible and avoiding frequent credit applications. When you follow these steps consistently over a long period, you build a solid credit history, and your score will remain in good shape.

The debt avalanche method helps you become debt‑free faster by tackling the highest‑interest debts first.
The best budgeting tools blend automation, clarity and real-time insights that help people manage their money with less effort and more confidence

Debt always feels like a burden. But with a bit of discipline and the right planning, you can pay it off faster. One of the ways to do so is by following the debt avalanche method. To save money and yet become debt-free sooner, the method focuses on paying off those debts with the highest interest rates first.

Debt Avalanche Method: Reduce Interest And Become Free Of Debts

To reduce the overall amount of interest you pay over time, the debt avalanche strategy focuses on paying off the loans with the highest interest rates first. It can shorten the total repayment duration and result in long-term financial savings by focusing on the most costly loans first. But you must continue to make your payments on time.

The debt avalanche approach may first seem slower, but it is more cost-effective than the debt snowball method, which prioritises smaller balances. The biggest challenge is staying disciplined, particularly if your financial circumstances suddenly alter.

Become Debt-Free By 2027

Here’s how you can structure this repayment plan to become debt-free by 2027:

List Every Debt You Have, Along With The Interest Rates

Make a thorough list of all your outstanding debts. Add each debt’s balance, annual interest rate and necessary minimum payment each month. After the list is created, place the items from highest interest debt at the top to lowest interest debt at the bottom. The debt avalanche approach is based on this ranking. It will assist you in concentrating on paying off the most costly debts first.

Determine how much money you can set aside each month to pay off debts after paying for necessities like rent, groceries, bills, and transportation, among other things, using this list.

Cover Minimum Payments

Every month, continue making the minimum payment on all of your debts. Minimum payments ensure that your accounts stay in good standing and protect your credit score. The Debt Avalanche Method does not suggest ignoring minimum payments on lower‑interest debts.

Allocate Extra Funds To The Highest Interest Debt

Once you’ve made all minimum payments, any extra money you can afford should go towards the debt with the highest interest rate. Even a small additional payment each month can make a significant difference over time.

For example, if you have extra funds after minimum payments, applying them to a high‑interest credit card balance can reduce that debt much faster than splitting extra payments across all debts evenly.

Roll Over Payments As Debts Are Paid Off

Once the debt with the highest interest rate is fully paid, shift your focus to the next highest-interest debt. Take the total amount you were paying on the previous debt, including both the minimum payment and any extra, and apply it to this next debt. This way, your payments stay consistent, helping you reduce the debt faster and save more on interest over time.

Repeat this process until all your debts are paid off.

Changes That Can Speed Up Your Debt Payoff

While the debt avalanche method itself is powerful, there are additional steps you can take to become debt-free:

Cut unnecessary expenses: Redirect every rupee saved from discretionary spending toward debt repayment.

Increase income: Consider a side hustle or freelance work and use all extra earnings for debt payoff.

Avoid new debt: Resist the temptation to take on new loans or credit while working through existing debt.

Pros And Cons Of Debt Avalanche Method

Advantages: The debt avalanche method helps you save money by targeting debts with the highest interest rates first, reducing the total interest you pay over time. Since most lenders use compound interest, this approach can also shorten the time it takes to become debt-free, as less interest accumulates, provided you make consistent payments.

Disadvantages: One drawback is that it focuses on interest rates instead of than debt balances. Large debts with lower interest may shrink slowly, which can feel discouraging. The method also requires discipline and consistency. Financial changes or setbacks can make it tempting to stick to minimum payments instead.

Common Mistakes To Avoid With The Debt Avalanche Method

While following the debt avalanche method, watch out for these pitfalls:

Neglecting savings: Even as you focus on paying down debt, keeping a small emergency fund is essential to avoid taking on new debt if unexpected expenses arise.

Missing minimum payments: Skipping the minimum payments on lower-interest debts can lead to penalties and damage your credit score, even if you’re targeting higher-interest debts first.

Overall, becoming debt‑free by 2027 using the debt avalanche method requires planning, discipline and consistency. By prioritising high‑interest debts and maintaining strict discipline, you can reduce the time to financial freedom and save thousands in interest. Start today, stay focused and with each cleared debt you’ll be closer to a life without financial burden.

Deepfake Protection is becoming essential in a world where AI can replicate voices, faces and identities with alarming accuracy.

Deepfake Protection is no longer a buzzword in cybersecurity. Instead, it is a pressing need in today’s world. With the advent of artificial intelligence, it has become possible to create hyper-realistic videos, audio recordings and images of real people, which can be used with malicious intent. Cybercriminals are using deepfakes for identity theft, fraud, disinformation and extortion, among other things. With the increasing availability of AI technology, cybercriminals do not need to be highly technical to execute complex impersonation scams. In most cases, the victims are not able to differentiate between real and fake content, which can lead to further damage to finances, reputation and privacy.

The Scale Of Deepfake Threat

The rapid evolution of deepfakes proves the need for effective deepfake protection. The number of deepfake fraud attempts has grown exponentially over the past few years. According to a report in Deloitte, deepfake content circulating on social media platforms increased by around 550% between 2019 and 2023. Meanwhile, a report released by IBM in early 2025 warned that the scale of the threat is now staggering. IBM cited findings from the Onfido Identity Fraud Report 2024, which noted a 3,000% rise in deepfake-related fraud cases.

How Deepfakes Target Your Digital Identity

Deepfakes are commonly employed to evade identity verification or deceive individuals into sharing confidential information. For instance, a criminal can create a deepfake voice replica using only a few seconds of audio. This enables them to pose as relatives, business executives or customer service representatives. In cases of financial fraud, deepfakes can be employed in video calls or voice messages to authorise payments. Scammers are also employing deepfakes to create fake ID documents and evade facial recognition security systems by creating virtual identities that seem genuine.

Why Humans Struggle To Spot Deepfakes

Human brains evolved in a world where seeing something usually meant it was real, which is why deepfakes can be particularly dangerous today. A study published in Scientific Reports in 2023 examined how the human brain responds to emotional expressions depending on whether a face is believed to be real or artificially created.

The study found that when people believe a smiling face is artificial, such as a deepfake, they tend to react less strongly and less positively compared to their reaction to a genuine smile. However, responses to angry faces remained largely unchanged, whether the face was believed to be real or fake.

The findings suggest that while people may subconsciously question positive emotional signals in suspected deepfakes, negative emotional expressions can still influence perception, highlighting the need for caution when consuming digital visual content.

Limit Your Digital Exposure

One of the most important deepfake protection techniques is to limit the amount of personal information that is exposed online. Do not share high-quality audio files, personal videos and personal information online. Cyber thieves tend to harvest information from social media platforms to use as training data for deepfake models. The less information exposed, the more difficult it will be for attackers to produce realistic forgeries.

Improve Authentication Techniques

Password protection is no longer a reliable way to protect oneself. Multi-factor authentication, hardware tokens and behaviour-based authentication techniques are more secure. It’s better to use multiple authentication factors, such as device identification, behaviour and dynamic biometrics, rather than relying solely on static facial or voice recognition.

Verify Before You Trust Digital Media

It is always important to be cautious about urgent or emotional emails, especially those that ask for financial or sensitive information. Deepfake scams frequently use emotional manipulation to make people act quickly. One way to protect yourself is to check the information through an independent channel, such as by making a phone call to a known number.

Keep Tabs On Your Digital Footprint

Make it a habit to scan financial statements, social media and credit reports for any signs of unusual use. This can help limit the damage caused by identity theft. Many cyberattacks happen because hackers use stolen login credentials or compromised personal information before the victim is even aware of the problem. This is where monitoring tools and notifications can help provide early indicators of a problem.

Use Secure Platforms And Up-To-Date Software

Using outdated software and substandard security solutions makes it easier for hackers to take advantage of vulnerabilities. Many cyberattacks happen because of unpatched software or third-party security vulnerabilities. Using secure platforms and keeping software up to date can help protect against known vulnerabilities that deepfake attacks often rely on.

Learn To Identify Deepfake Warning Signs

While it is difficult to spot deepfakes, there are still some warning signs that can be looked out for. These include unrealistic facial expressions, lip syncing that doesn’t match audio, robotic voice patterns or odd behaviour during video meetings. But as deepfake technology advances, it will become increasingly difficult to spot these issues, which is why it is essential to have multiple layers of protection.

Future Of Deepfake Protection

Governments, technology companies and cybersecurity organisations are pouring significant resources into detection tools such as AI forensic analysis, digital watermarking and behavioural authentication. Such efforts are intended to help rebuild trust in digital communication as the deepfake technology continues to advance.

Deepfake Protection is set to become a standard practice in digital hygiene, much like the use of antivirus software or password protection today. As the capabilities of AI tools continue to advance and become more accessible, individuals must learn to practice proactive security measures to safeguard their identities, financial information and reputations against the threat of AI-based identity fraud.

The Grand Jury vs Trial Jury distinction lies in their roles, with grand juries deciding whether charges should be filed and trial juries determining guilt or innocence.
How the US Supreme Court Works: A Simple Explainer

Grand juries and trial juries are the two primary jury categories used in criminal proceedings by the US criminal justice system. Grand juries have an equally important function but operate mostly behind closed doors. Trial juries are those that most people are familiar with from television dramas or real-life courtroom coverage.

But their functions are very different. A grand jury evaluates if there is sufficient evidence to formally charge someone with a crime. A trial jury hears evidence in court and gives a verdict on the accused’s guilt or innocence.

Grand Jury

Prosecutors use a grand jury to decide whether they should file criminal charges against a suspect. Grand juries are most frequently employed in federal prosecutions and major state felony cases. A federal grand jury usually includes between 16 and 23 citizens, and members may serve for several months at a time.

A district attorney may decide to use a preliminary hearing rather than a grand jury in certain circumstances. Determining whether there is sufficient evidence to formally charge someone with a crime is the goal of both processes. The grand jury process takes place behind closed doors. The prosecutor is usually the only person present to present evidence, aside from the jurors themselves. The prosecutor also chooses the documents to be subpoenaed, the evidence to be presented and what issues the grand jury examines.

Grand juries are not need to reach a unanimous decision in order to indict someone. Generally, two-thirds or three-quarters of jurors must agree to move forward, depending on the jurisdiction.

A grand jury will issue an indictment if it determines that there is sufficient evidence and reasonable cause to convict someone of a crime. The criminal case can proceed because of this official accusation. The court arranges an arraignment following the issuance of an indictment. The defendant is formally told of the charges that the grand jury approved when they appear in court for the arraignment.

Prosecutors sometimes use grand jury proceedings to assess the strength of their case before trial. However, if a prosecutor strongly disagrees with a grand jury’s decision, there may be limited circumstances where they can pursue alternative legal routes, depending on the law in that jurisdiction.

Grand juries work closely with prosecutors, who guide them on relevant legal principles. Jurors have broad powers to review evidence and question witnesses. The process is less formal than a trial, giving jurors more flexibility in examining information.

Grand jury rules of evidence are less stringent than those used in criminal trials. Witnesses usually testify without attorneys present. Strict confidentiality is maintained throughout the proceedings to protect suspects in the event that no charges are eventually brought.

Trial Jury

At the end of a formal criminal or civil trial, a trial jury, also referred to as a petit jury, is tasked with delivering a final decision, which could be either “guilty” or “not guilty.” Not all cases automatically qualify for a jury trial since the right to one is contingent upon the gravity of the charge and the potential penalty associated with it.

A trial jury usually consists of six to 12 jurors. The United States District Court is the venue for trials in federal cases in the US. Depending on how complicated the case is, jurors usually serve for the full length of the trial, which can range from a few days to many weeks or even months.

The judge strictly oversees the highly regimented trial court proceedings. The jury must agree unanimously before delivering a verdict in criminal cases.

A trial jury typically has little discretion over the evidence that is presented, unlike a grand jury. Rather, attorneys on both sides meticulously choose and present evidence, adhering to stringent legal guidelines intended to guarantee that the jury is seen only accurate and pertinent material.

It is uncommon for trial jurors to have the opportunity to question witnesses directly. Jurors may be permitted to raise questions in some jurisdictions, but they have to submit them to the judge beforehand. The question’s admissibility is then determined by the court. These enquiries usually come up during deliberations when jurors require explanation.

Differences: Grand Jury Vs Trial Jury

The most important difference is their purpose. A grand jury acts as a screening body, deciding whether a case should go to trial. A trial jury delivers the final verdict after examining full evidence from both sides.

Another difference lies in the standard of proof. Grand juries look for probable cause, meaning reasonable grounds to believe a crime occurred. Trial juries require proof beyond a reasonable doubt, which is much stricter and designed to prevent wrongful convictions.

There are also procedural differences. Grand jury proceedings are secret, while trial proceedings are public. Grand juries mainly hear from prosecutors, while trial juries hear from both prosecution and defence. This creates a more balanced and adversarial process during trial.

Grand Jury Vs Trial Jury: Selection And Composition Differences

Both grand jurors and trial jurors are typically selected randomly from citizens. However, trial jurors go through a detailed selection process called voir dire, where lawyers question potential jurors to ensure impartiality. This process is more extensive because trial jurors directly decide guilt or innocence.

Grand juries are usually larger because they need to evaluate many cases and investigations. Their voting rules are also different. Grand juries often require only a majority vote to issue an indictment, whereas trial juries usually require unanimous agreement to convict in criminal cases.

Why Both Systems Exist

The dual jury structure ensures balance. The grand jury prevents weak or baseless cases from reaching trial. It acts as a buffer between government prosecutors and citizens, ensuring prosecutors cannot easily file serious charges without evidence.

Trial juries, on the other hand, ensure fairness by allowing both sides to present arguments and evidence in an open courtroom. They determine the truth of disputed facts and apply legal instructions provided by a judge to reach a final verdict.

Together, these systems help maintain public confidence in the justice process. The separation of investigative and judgmental roles is a key feature of the American criminal justice framework.

The Electoral Count Act sets out the legal process by which the US Congress receives, tallies and finalised Electoral College votes that determine the presidency.
The Electoral College is not a place; it is a procedure established by the US Constitution. (Picture credit: Virginia.gov)

In the United States, every four years, after voters cast their ballots in the November presidential election, the official outcome is recognised and recorded by Congress after a formal legal process. The Electoral Count Act, a federal legislation that specifies how electoral votes are sent to Congress, opened, read aloud and formally tallied during a joint session of parliamentarians, governs this process. 

Why Electoral Count Act Was Created 

This procedure was made clearer and more organised with the introduction of the Electoral Count Act of 1887 (ECA). It was passed following the fiercely disputed 1876 presidential election, which resulted in weeks of political unpredictability and tension due to competing electoral vote filings from several states. 

In response, legislators drafted the Act to create a structured legal framework that would help avoid future crises of this nature. The appointment of electors, the verification and counting of their votes, and the handling of differences or complaints are all explained by this framework. 

Rules, Timelines, Objection 

Apart from outlining the overall structure, the law establishes stringent deadlines for important phases of the election process. It lays forth the deadlines for electors to cast their ballots and for Congress to meet and tally them. The Act also establishes official objection mechanisms, mandating that any challenge to electoral votes be made in writing and subject to independent Senate and House of Representatives reviews. 

Modern Reforms To Strengthen The Law 

The Electoral College, a group of 538 electors chosen by the states and the District of Columbia, is at the centre of the American presidential election system. The votes that elect the president and vice president are cast by these electors. Only after these electors have cast and reported their votes does Congress start to play a part. 

The Electoral Count Reform and Presidential Transition Improvement Act, a significant update, was passed by Congress in December 2022. It modernises and clarifies the original Electoral Count Act provisions. It was signed into law as part of broader government appropriations legislation to improve electoral procedures for the 21st century. 

Election Certification 

Election certification is the formal procedure that completes the process. It entails counting and verifying that each and every vote has been cast. Recounting votes, identifying errors or resolving issues related to the election is not its responsibility. Only when the results have been thoroughly examined can certification take place. Certification is essentially a means of verifying that the vote count was carried out correctly. 

Receiving And Processing Electoral Votes 

After the election, each state sends its certified electoral votes to Congress in sealed certificates. These votes are addressed to the Vice President in their role as President of the Senate. Upon arrival at the Capitol, the certificates are placed in ceremonial boxes and carefully moved from the Senate chamber to the House chamber to prepare for the joint session. 

Members Gather For The Joint Session 

Federal law requires that both chambers of Congress meet at a set time to begin counting the electoral votes. Senators and House members convene in the House chamber, and the Vice President presides over the session from the dais. Other leadership members sit nearby to assist with the ceremony. 

Reading And Counting The Votes 

Designated members from both chambers, called “tellers,” help read the votes aloud. These tellers, chosen by congressional leadership, announce the electoral votes for each state in alphabetical order. As each state’s results are read, the Vice President oversees the process and asks if there are any objections to the votes. 

If an objection meets the required threshold, usually supported in writing by at least one-fifth of the members of both chambers, the House and Senate withdraw to debate the objection separately. Each chamber may debate for up to two hours before voting on whether to sustain the objection. 

Completing The Certification 

Once all votes have been read and any objections addressed, the Vice President announces the final tally of electoral votes and identifies the candidates who have received a majority. The session is formally concluded, marking the official certification of the election. The entire process can take less than an hour in normal circumstances, though it can last much longer if there are delays or disputes. 

According to the Twelfth Amendment of the US Constitution, the candidate who receives a majority of all appointed electors becomes President. In practice, all states and the District of Columbia appoint the full number of electors they are entitled to, bringing the total to 538. This means a candidate needs at least 270 electoral votes to secure a majority and win the presidency. 

Cryptocurrency is a form of digital money that exists only online. It is not printed like cash and is not controlled by any single government or bank.
A cryptocurrency is a digital or virtual form of money.

Cryptocurrency can feel like a whole new language. Bitcoin, Ethereum, blockchain, wallets – it is easy to get lost in the jargon. That said, crypto is pretty simple. It is digital money. Unlike the dollars, rupees, or euros in your wallet, crypto doesn’t exist in physical form. It lives on the internet, and its value is verified using something called blockchain technology, a super-secure digital ledger that keeps track of who owns what. 

What Is Cryptocurrency For Tax Purposes? 

For most tax authorities, cryptocurrency is treated as an asset or property, not as traditional currency like USD or Euro. This matters because taxes are usually calculated based on profit or income from transactions. 

In the US, the IRS (Internal Revenue Service)treats virtual currency as property for federal tax purposes. This means crypto gains or losses work like gains from stocks or real estate.  

How Crypto Is Taxed In The United States 

Taxable Events – A taxable event is whenever crypto is sold or used in a way that triggers a tax obligation: 

  • Selling cryptocurrency for cash (USD) is taxable. 
  • Swapping one cryptocurrency for another (eg, BTC to ETH) is taxable. 
  • Spending crypto on goods or services is taxable if its value changed since you received it. 
  • Receiving crypto as payment for services or business income is taxable as regular income. 

Capital Gains Tax – In the US, crypto gains are taxed as capital gains: 

  • If you hold the asset for less than one year, gains are taxed at ordinary income rates (10 per cent – 37 per cent, based on income). 
  • If held for more than one year, gains usually get lower rates (0 per cent, 15 per cent, or 20 per cent depending on income). 

These rates are similar to long‑term and short‑term capital gains on stocks. 

Ordinary Income – Crypto received as payment for work, mining rewards, or staking rewards is taxed as ordinary income. The amount taxed is the fair market value (in USD) on the day you receive it. 

Reporting and Compliance – US tax forms now ask if you received, sold, exchanged, or otherwise disposed of crypto during the year. The IRS is increasing enforcement on crypto tax reporting, and misreporting can lead to penalties or audits. 

Why Crypto Tax Compliance Is Increasing 

Tax authorities around the world are tightening tracking of crypto transactions: 

  • The Organisation for Economic Co-operation and Development (OECD) has introduced the Crypto-Asset Reporting Framework (CARF), which requires cryptocurrency platforms and exchanges to share user transaction data with tax authorities across many participating countries. 
  • In the United Kingdom, cryptocurrency exchanges are now required to report detailed user transaction information to His Majesty’s Revenue and Customs (HMRC), the country’s tax authority. 
  • The European Union (EU) has implemented Directive on Administrative Cooperation 8 (DAC8), a rule that enables the automatic sharing of cryptocurrency reporting data between tax administrations of EU member states. 

These moves are meant to reduce tax evasion and bring crypto into regular financial reporting systems. 

Global Crypto Taxation 

While the US has specific rules, other countries treat crypto differently. Tax systems vary depending on local laws, but most countries tax some form of profit from crypto. 

Common Taxable Events Worldwide 

The following activities are usually taxable in many countries: 

  • Capital gains when selling or trading crypto. 
  • Income earned from mining, staking, airdrops. 
  • Using crypto to buy goods or services. 
  • Crypto received as salary or payments. 

Over 80 per cent of major tax systems view trading between cryptocurrencies as a taxable event, so always keep detailed records of these moves. 

Global Crypto Tax Systems (2025-2026) 

  • UK: Capital gains tax ranges between about 10 per cent – 20 per cent depending on income and gains, with specific allowances and reporting requirements. 
  • Germany: Crypto held more than one year is often tax‑free for individuals; short‑term gains can be taxable. 
  • France and Spain: Both tax crypto gains at moderate rates, often aligned with capital gains rules applying to stocks and financial assets. 
  • India: Crypto is taxed at a flat 30 per cent on profits with a 1 per cent tax deducted at source (TDS) on transactions above a threshold. Losses cannot be offset against gains. 
  • Singapore and Hong Kong: No capital gains tax on crypto for individuals, though crypto income might be taxed if it is business income. 
  • South Korea: Planned crypto gains tax has been delayed; new rules are expected later. 
  • Canada: Treats crypto like property; half of the capital gain may be included in taxable income. 
  • Brazil and Argentina: Tax reporting and capital gain taxes apply, with Brazil taxing larger gains on crypto transactions. 
  • United Arab Emirates (UAE): Typically no personal tax on crypto gains. 
  • South Africa: Crypto is taxable under capital gains and income rules. 

Crypto Tax Havens And Low‑Tax Locations 

Some countries offer a favourable or zero personal crypto tax for investors: 

  • UAE: Zero personal crypto tax on trading, selling, and mining. 
  • Portugal: Certain long‑term gains are tax‑free, especially if assets are held over a year. 
  • Switzerland: Individuals often pay no capital gains tax on crypto. 

Cryptocurrency tax rules are evolving quickly. As digital assets become more integrated into the global financial system, governments are tightening reporting standards and enforcement. 

Understanding how different scoring models weigh Credit Score Factors can help you make smarter borrowing and financial decisions.
Interest rates represent the cost of borrowing money.

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