Lenders can check your social profiles to assess your creditworthiness

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Your FICO score isn’t the only thing that matters to lenders. More and more companies are popping up that Offer social data to help lenders, landlords, and other providers assess your creditworthiness. In other words, they use your online presence to make decisions about your application.

Your FICO score calculates your behavior with credit with quantitative methods: how long you have been in arrears with a payment, for example, or how much credit you have available. Qualitative data, on the other hand, is based on things like your social interactions on Facebook. Or topics you’ve searched for online, such as: B. Payday Loans. This gives lenders a whole different look into your life for assessing your credit risk.

The credit comparison site TotallyMoney.com explains:

Many of them, including Singapore-based Lenddo and US-based Moven, both founded in 2011, and Score Assured, founded in 2015, search for keywords based on the fact that if you’ve been “drunk” or ” Party say “then you are less reliable which will negatively affect your score – but others go a step further …. Hello Soda has developed a technology called PROFILE that they want to make available to other lenders.” It analyzes a customer’s entire social presence using language processing and psycholinguistics to identify life events, salary data, location, age and occupation, among other things, and generate their social credit score … InVenture and Friendly Score posts and look at their browsing history instead and see which pages are being visited … Searching for “payday loan” or debt management information is the first port of call in these analyzes, but they even check your cell phone call history, scan for value added numbers and other financial companies.

Other companies look at your browsing history and see what websites you visit, the article explains, and look for words that stand out. like “Payday Loans”.

In China, the government is actually planning to introduce a social credit system based on this type of dataThere are no statistics on how many countries in the US or elsewhere use this type of data, but the fact that these companies exist shows that there is a market for lenders and other providers to provide information about applicants through the FICO -Wish out values. If nothing else, this is something you should be aware of as you navigate your own social channels and online activities.

Social Credit Scores – Your Friends, Your Purchase History, and Your Financial Future | Total money

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Reggie S. Williams

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