Abstract
The online auction is tend to be the most popular way for purchase. Although all the online auction websites begin to use credit index to keep away from trade risk, there still lies great limitation in the method of credit index calculation. The paper begins with the analysis for the on-going situation about credit index system and list three main limitations in the method of credit index calculation: difficulty to raise credit index for highly risky transactions, lack of punishment on non-good faith transactions, and lack of pertinence for the mixed calculation of credit index of purchasers and sellers. Finally, three suggestions are given for each limitation. They are the method of credit index calculation based on transaction risks, based on rewards and punishment, and based on separating purchaser's from seller's credit. We believe these modification suggestion will do some help to build a better credit index system.
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