Reply
Frequent Contributor
twall06
Posts: 340
Registered: ‎10-25-2012

Social networks could impact lending

Kind of interesting .

http://money.cnn.com/2013/08/26/technology/social/facebook-credit-score/index.html?hpt=hp_t2


STARTED MYFICO TU 569 EQ 618 1-30-13
CURRENT MYFICO TU 664 EQ 656 Ex ? 3-13-14
MERRICK BANK FICO 539 12-26-12 / 649 2-17-14
GOAL 680+ last ap 5-30-14
Community Leader<br> Established Contributor</br>
Community Leader
Established Contributor
SCF
Posts: 956
Registered: ‎06-09-2008

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: 340
Registered: ‎10-25-2012

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

STARTED MYFICO TU 569 EQ 618 1-30-13
CURRENT MYFICO TU 664 EQ 656 Ex ? 3-13-14
MERRICK BANK FICO 539 12-26-12 / 649 2-17-14
GOAL 680+ last ap 5-30-14

myFICO is the consumer division of FICO. Since its introduction 20 years ago, the FICO® Score has become a global standard for measuring credit risk in the banking, mortgage, credit card, auto and retail industries. 90 of the top 100 largest U.S. financial institutions use the FICO Score to make consumer credit decisions.

>> About myFICO
FICO Score - The Score that matters
Fair Isaac Corporation is a BBB Accredited Financial Service in San Rafael, CA
FOLLOW US Social Media Facebook Twitter Pinterest Google+