The simple and robust attitudes of China’s Authority towards folk credit during a long period have rendered it out of the supervision, flourishing in the darkness, which have put sand in the wheel of China’s economic development and social stability, yet the existence of folk credit has its own theories and realistic proofs. In this respect, legal regulation and governmental supervision are supposed to be the panacea to deal with it. There is, however, a sophisticated and dilapidated legal system of folk credit, a subject-missing and over-stringentness supervising mechanism, both weakening the positive impact of folk credit. It is of our conviction that a multilevel and polymorphic mechanism, a more complete legal regulation as well as a strengthened governmental supervision, guidance and support of the folk credit are there to be built in a not-far-away future.