Thursday, August 29, 2013

Facebook friends could change your credit score



Project XIII can't come soon enough!  Enough of this data harvesting! -Bill

Facebook friends could change your credit score
By Katie Lobosco  @KatieLobosco August 27, 2013: 11:24 AM ET
http://money.cnn.com/2013/08/26/technology/social/facebook-credit-score/index.html?hpt=hp_t2

Some tech startups are using your online social data to determine your creditworthiness.

NEW YORK (CNNMoney)

Choose your Facebook friends wisely; they could help you get approved -- or rejected -- for a loan.
A handful of tech startups are using social data to determine the risk of lending to people who have a difficult time accessing credit. Traditional lenders rely heavily on credit scores like FICO, which look at payments history. They typically steer clear of the millions of people who don't have credit scores.

But some financial lending companies have found that social connections can be a good indicator of a person's creditworthiness.

One such company, Lenddo, determines if you're friends on Facebook (FB) with someone who was late paying back a loan to Lenddo. If so, that's bad news for you. It's even worse news if the delinquent friend is someone you frequently interact with.

"It turns out humans are really good at knowing who is trustworthy and reliable in their community," said Jeff Stewart, a co-founder and CEO of Lenddo. "What's new is that we're now able to measure through massive computing power."

Related story: Millions without credit scores not so risky after all

A German company called Kreditech says that it uses up to 8,000 data points when assessing an application for a loan.

In addition to data from Facebook, eBay or Amazon (AMZN, Fortune 500) accounts. Kreditech also gathers information from the manner in which a customer fills out the online application. For example, your chances of getting a loan improve if you spend time reading information about the loan on Kreditech's website. If you fill out the application typing in all-caps (or with no caps), you're knocked down a couple pegs in Kreditech's eyes.

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