Bad Facebook Friends Equals Bad Credit

Several new companies have emerged that will judge how “trustworthy” a person is from their online accounts. These companies are being used to determine a persons creditworthiness. A person’s accounts on eBay, Paypal and even Facebook have been scoured to watch for certain points and indicators that would lead these companies to believe they would not pay loans or fees on time. For example, if a person applying for a loan is friends with several people on Facebook that have bad credit, this company can determine the likelihood that this person would be of bad standing as well. Now this is simply if a person is applying for a loan from this company.
But with companies like these starting to digitally check a person’s history online, much more accuracy and less risk is involved with these companies loaning out money. It’s a very smart form of credit checking people. In today’s society, a good amount of people have a great deal of information about themselves on social media accounts. Using this information which is mostly public on these sites is very resourceful and also relatively cheap.
These companies do not solely base their decision making off of a person’s social media profiles. They also take in part traditional methods of credit checking. But these new forms of credit checking will make a person think twice before clicking that friend request button on Facebook. Much more users will clean up social media sites like Facebook and Twitter with more responsibility coming from their profiles now.