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Frequent Contributor
twall06
Posts: 346
Registered: ‎10-25-2012
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Social networks could impact lending

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Established Contributor
SCF
Posts: 1,039
Registered: ‎06-09-2008
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Re: Social networks could impact lending

It is an interesting concept, and when you think about it, it's not really SO different from what Fico already does.  It gathers a bunch of information about you and assigns you a risk score based on how other people with the same information behaved.  That said, I would think this is even more open to manipulation and probably less reliable than other factors that are more closely related to your finances.

 

In cultures where financial information is considered private, and many people (even some of us on these forums, I would imagine) hide - or choose to not disclose - the actual state of their finances from their friends and much of their family, it seems that your friendships might not be a great predictor.  And can you imagine the buying and selling of Facebook friendships to help you get a loan?

Frequent Contributor
twall06
Posts: 346
Registered: ‎10-25-2012
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Re: Social networks could impact lending

Yeah its just interesting I don't think it should be used as an indicator if you are credit worthy or not . Just cause some one on your friends list that you know from hs decided not to pay does not mean you wont. Another example of to much info online better off not using fb

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