Lenders turn to Facebook to determine credit worthiness
Posted September 12, 2013
Warnings about what you post on social media are nothing new, but the latest one is especially alarming: Who you friend on Facebook could impact your credit history.
Traditional lenders rely heavily on credit scores like FICO, which looks at payment history.
But, according to CNN Money, some lending companies have found that social media connections can be a good indicator of credit worthiness. A handful of startups are using the information to determine the risk of lending to people who have a difficult time getting credit in the first place.
One of those companies, Lenddo, determines if you are Facebook friends with someone who was late paying back one of its loans. If you are, that's bad news for you.
So, add that to the growing list of social media concerns. Not only can Facebook activity cost you a job, now it might cost you a loan.