Companies are using 'social data' to determine your credit score.
What can we learn from this?
“You better think hard about who you want to be Facebook friends with these days. Especially now that CNN Moneyreported on Aug. 26 that your Facebook buddies can affect your credit score. Now that might seem a little unfair, because come on, what do your friends know about your loan-paying habits? Apparently a lot.” Kelsey WaananenTechnology Examiner
You are being watched
Credit companies, loan business, and even employers have hired tech companies to scout you before they even consider your applications. They not only check bank records but social media sites like Face Book and Twitter and rate you according to what they see. Then they go back to your loan company or potential employer with a score based upon what they have found. So, work for good credit scores by:
1. Keeping your bank accounts financially sound.
a. Pay your bills on time.
b. Don’t borrow too much though you have to borrow something to obtain credit.
c. Don’t apply for credit too often. That can work against you too.
d. Check your credit reports as often as you can to weed out errors and possible identity theft.
2. Keep your online social life in control.
a. Each tweet and FB post sends a message to your evaluators.
b. Mind the company you keep. Your friends are being watched too.
c. Pick carefully the words you post and the pictures you display.
d. If you’re business use Face Book and business review sites like YELP! to show off your great customer service.
According to Igrad.com’s Mackenzie Maher, “Although there are no immediate repercussions of the pending merger between social media and banking, it should serve as a reminder that our social networks expose us to a degree of publicity that we sometimes aren’t aware of. Even if your Facebook privacy settings are as secure as Fort Knox, there will always be some new source that wants to extract that private information and take advantage of the interconnectedness that social media is celebrated for. Even in a few years’ time, it is still unlikely that you will be legally obligated to provide lenders access to your social media accounts in order to qualify; likewise, they also won’t be legally obligated to give you the loan that you need if you refuse. Take this into consideration, as your social networks might someday determine your financial future.”