Facebook friends could change your credit score - Luxury Coach Lifestyles
Thread Tools Display Modes
Old 08-26-2013, 02:09 PM   #1
Senior Member
NewellCrazy's Avatar
Join Date: Sep 2006
Location: Sugarland, TX or Salida,CO
Posts: 1,867
Default Facebook friends could change your credit score

I don't use facebook personally but found this interesting, so for those who use it pick your friends wisely.


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.

Kreditech can determines your location and considers creditworthiness based upon whether your computer is located where you said you live or work.
The individual data points may not have meaning themselves, but can paint an good picture of the applicant when brought together, said Sebastian Diemer, a co-founder of Kreditech.
Another company, Kabbage, an online service that offers cash advances to small businesses, considers an owner's FICO score -- but only as one piece of a larger pie.
"We can get much better, faster data," said Marc Golin, Kabbage's chairman and co-founder.

Borrowers grant Kabbage access to their PayPal, eBay (EBAY, Fortune 500) and other online payment accounts, disclosing real-time sales and delivery information. The company says it can determine a business' creditworthiness and put money into its account in just seven minutes.

Once a small business is getting credit from Kabbage, it also has the option to link up its Facebook and Twitter accounts to the site, which could provide a bump in its "Kabbage score." The small businesses that do are 20% less likely to be delinquent on their loans, Golin said.

"Someone who's paying attention to Facebook and Twitter channels to deal with customer service is more likely to be on top of other parts of their business, too, like inventory and shipments," he said.
Related story: Credit score killers
For now, many of these tech startups attract a niche group of borrowers. Kabbage targets small business owners who sell products online. Lenddo and Kreditech target middle-class individuals in emerging markets where credit is tight.

They're also limited in scope: Kabbage expects to provide 100,000 cash advances this year, ranging between $500 and $50,000. Lenddo has about 250,000 members, but it only operates in the Philippines, Columbia and Mexico. Kreditech says it receives 1,000 applications per day.

But using "big data" to assess credit risk is on the verge of going mainstream. Kreditech has already began selling its technology to national online lenders in Russia and the Czech Republic. Golin said he hopes Kabbage will move into that space for lenders as well.

Some in the financial industry are skeptical about social data and online behavior being used as a kind of credit score. John Ulzheimer, a credit expert at CreditSesame.com, says social data aren't necessarily indicative of whether the borrower will pay back a loan on time. FICO only considers a handful of factors, but they are all "incredibly predictive of risk," Ulzheimer said.
There's also the potential to game the system. Consumers can easily control how many Facebook friends they have and tweets they write. The same cannot be said for what goes into their credit score.

"To me, using social media is a little bit dangerous," Ulzheimer said.

Facebook friends could change your credit score - Aug. 26, 2013


If Ain't a Newell, It Ain't Wurt Oonin!
NewellCrazy is offline   Reply With Quote
Old 08-26-2013, 03:24 PM   #2
Senior Member
MrE's Avatar
Join Date: May 2012
Location: Boise Idaho
Posts: 719

Looks like I should start 'un-friending' relatives.

Jon & Chris Everton
1986 40' Dog House #86
0 hp 8V92 Allison HT740
Soon to be 500hp ISM with ZF 6 Speed
MrE is offline   Reply With Quote
Old 08-26-2013, 10:08 PM   #3
Senior Member
Neweller's Avatar
Join Date: Jan 2003
Location: Heartland
Posts: 3,563

Well, I guess they will really start separating or segregating different groups of folks. I have way too much to keep up with to even care about a facebook account as I closed it down a couple years ago. I don't need any social media for personal reasons any longer and only use it for business. I'm amazed at how sites owned by google and youtube etc.. tie a name to an anonymous email for example. So much for personal security or privacy, we be owned by someone bigger than us with prying eyes..
Previous Owner of 3 Newell's
Wanted: Newell Coach Needing Engine Replacement!
If you want to sell, PM or Private Message me. Thanks!

"I know Im not perfect, and I don't live to be. But before you start pointing fingers, make sure your hands are clean."
-Bob Marley
Neweller is offline   Reply With Quote
Old 09-13-2013, 11:48 AM   #4
Senior Member
larryweikart's Avatar
Join Date: Feb 2006
Location: Iyopawa Island, Mi. (sometimes)
Posts: 421
Default Extra 50amp land lines

Just want to let all of my fellow members know that I have numerous land lines and connections for sale at a fraction of the price of buying new. Shipping would be the biggest problem but, thinking ahead, if we have a Newell rally next year I could bring enough to satisfy those in need. You could pm me if you have a need. Hope this doesn't sound too commercial but I really wanted to let everyone know before they purchased something I have and really want to get rid of.
1994 Newell #365 w/Corvette, 2002 streetrod 34 ford golf cart, 2009 Smart Car, 1958 Century Coronado, 1965 Cruisers Inc, CAR & BOAT CRAZY! LOVE OUR NEWELL!
larryweikart is offline   Reply With Quote

Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

Forum Jump

Similar Threads
Thread Thread Starter Forum Replies Last Post
Leece Neville 8lha2121v Alternator Detroit Series 60 teammoyer Member Parts Exchange 0 12-16-2014 08:49 PM
An RV Device That Helps Prevent a Flood by SmartValve Neweller RVing Safely 0 03-24-2013 01:38 PM
Mail forwarding and full timing whats your take ? Archie T. Hogan Dollars and Cents 7 10-09-2012 09:00 PM
Nitrogen for tires? Brad Townsend Running Gear, Brakes, Tires, Chassis and Pneumatic Systems 14 09-22-2011 01:39 PM
C-15 625HP & ZF-AS TRONIC 10 S. or C-15 600HP & ALLI ikcandco Major Mechanicals 2 02-07-2008 01:40 AM

» Virginia State Campgrounds

Reviews provided by

Powered by vBadvanced CMPS v3.2.3

All times are GMT. The time now is 11:10 PM.

Powered by vBulletin® Version 3.8.8 Beta 4
Copyright ©2000 - 2018, vBulletin Solutions, Inc.