Do All Of Your Facebook Friends Have Good Credit?

Some financial companies look at potential borrowers' social media footprint -- including their friends and, eventually, their friends' credit scores -- to determine whether they qualify.

What's the Latest Development?


A small group of financial services companies targeting select audiences are using data from Facebook and other online accounts to help determine the credit-worthiness of a potential borrower. One company, Lenddo -- which operates in Colombia, Mexico and the Philippines -- checks to see if a possible customer is friends on Facebook with an existing customer who was late in paying back their loan. In addition to perusing social media accounts, another company, Kreditech, actually tracks how a person completes their online application, taking off points for such things as typing in all-caps.

What's the Big Idea?

Most financial services companies still prefer to look at a person's credit history through traditional means, like FICO scores. However, Kabbage co-founder Marc Gorlin, whose company specializes in giving out cash advances to small business owners, says that by including information from borrowers' eBay and PayPal accounts alongside the credit score, "[w]e can get much better, faster data." Credit expert John Ulzheimer says that despite FICO's limited number of determining factors, it's "incredibly predictive of risk...To me, using social media is a little bit dangerous."

Photo Credit: Shutterstock.com

Read it at CNNMoney

LinkedIn meets Tinder in this mindful networking app

Swipe right to make the connections that could change your career.

Getty Images
Sponsored
Swipe right. Match. Meet over coffee or set up a call.

No, we aren't talking about Tinder. Introducing Shapr, a free app that helps people with synergistic professional goals and skill sets easily meet and collaborate.

Keep reading Show less

4 reasons Martin Luther King, Jr. fought for universal basic income

In his final years, Martin Luther King, Jr. become increasingly focused on the problem of poverty in America.

(Photo by J. Wilds/Keystone/Getty Images)
Politics & Current Affairs
  • Despite being widely known for his leadership role in the American civil rights movement, Martin Luther King, Jr. also played a central role in organizing the Poor People's Campaign of 1968.
  • The campaign was one of the first to demand a guaranteed income for all poor families in America.
  • Today, the idea of a universal basic income is increasingly popular, and King's arguments in support of the policy still make a good case some 50 years later.
Keep reading Show less

A world map of Virgin Mary apparitions

She met mere mortals with and without the Vatican's approval.

Strange Maps
  • For centuries, the Virgin Mary has appeared to the faithful, requesting devotion and promising comfort.
  • These maps show the geography of Marian apparitions – the handful approved by the Vatican, and many others.
  • Historically, Europe is where most apparitions have been reported, but the U.S. is pretty fertile ground too.
Keep reading Show less

Why I wear my life on my skin

For Damien Echols, tattoos are part of his existential armor.

Videos
  • In prison Damien Echols was known by his number SK931, not his name, and had his hair sheared off. Stripped of his identity, the only thing he had left was his skin.
  • This is why he began tattooing things that are meaningful to him — to carry a "suit of armor" made up the images of the people and objects that have significance to him, from his friends to talismans.
  • Echols believes that all places are imbued with divinity: "If you interact with New York City as if there's an intelligence behind... then it will behave towards you the same way."
Keep reading Show less