5 On Your Side

Lenders turn to Facebook to determine credit worthiness

Posted September 12, 2013

WRAL 5 On Your Side

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.


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  • 68_dodge_polara Sep 17, 2013

    "Just one more reason why I will never have a Facebook page."

    Me too. Every post made never goes away. never.

  • blahblahblah Sep 17, 2013

    Just one more reason why I will never have a Facebook page.

  • danderson221 Sep 16, 2013

    Ok, this is new to me.

  • common tater Sep 16, 2013

    Headline is a little misleading. Who's ever heard of Lenndo?

  • Rebelyell55 Sep 16, 2013

    Another excuse to keep the fees high. But I'll admit, I never understood some people having 500+ FB friends.

  • rachel Sep 13, 2013

    68_dodge_polara- anyone who has taken statistics and passed it, knows you can manipulate the data to prove or disprove anything you want to-statistically my odds of getting run over by the cross town bus are low-but if I do get hit its 100%-looking for more reasons and reaching like this, just makes lenders, banks and businesses look even more slimy if that is possible.

  • rachel Sep 13, 2013

    any scheme for business to try and stiff the people-because if they can find some dirt, they might be able to offer less then good terms or rates and that's how they make the money.

  • 68_dodge_polara Sep 13, 2013

    "Is that publicly-searchable information?"

    No, such information is only available to companies that pay facebook for it. Oh and of coarse to the government upon request.

  • albegadeep Sep 13, 2013

    How exactly do they determine who is FB-friends with who? Is that publicly-searchable information?

  • momeeee Sep 13, 2013

    Yikes! I am screwed!