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Inbound Marketing Blog

    Financial Lenders Now Use Facebook to Determine Credit-Worthiness

    Posted by Jennifer Kardell

    What Happens on Facebook Doesn't Stay on Facebook

    Facebook used to be a fun place to share photos and messages with friends, but now with their ever-changing privacy policies more information is becoming available than protected. This isn’t to deter you from using Facebook again, just to be more cautious. Lenders are taking note of what really happens on their borrowers’ social media. So if you have more pictures of yourself partying on the weekends than pictures of yourself promoting a positive image, you might want to start cleaning up your profile not only for employment but if you plan on getting a loan.

    Every decision has its consequences, Facebook can't change that.

    Facebook has been the ultimate "go-to" for people to find out, well...just about anything about anyone! Job seekers are forewarned that employers can look at their profiles and now credit lenders can also check out your profiles. 

    Don't have any money because you spent it all at the bars, but want to apply for a loan to pay rent because of your decision to go out to have a good time? Yeah, unfortunately, that can now deter you from getting a loan. 

    Honesty is the best policy.

    Another determining factor in your credit worthiness for lenders is how truthful a borrower is on their application. If a borrower claims to be employed but is posting on Facebook about being unemployed and needing a job then that could deter them from getting the loan. Lenders use social media to determine if a borrow is who they say they are, according to Daily Finance.

    Do you have friends in low places?

    According to GeoBeats, your friends can also be a deciding factor for lenders. Your friends can be a reflection of yourself. Should you de-friend that dead-beat high school buddy, not exactly, but depending on the loan and the history the friend may have with the company it can be a deciding factor on whether or not you will be approved.

    It’s about quality not quantity.

    The Wall Street Journal has even reported on this subject. Lenders will also take note of how many friends a borrower has and how close they are to those friends. If you have thousands of friends but aren’t close to any of them, you may be less likely to get approved for a loan than someone who has a small amount of friends but have close ties. Both of these factors come in to play for lenders to measure how engaged you are. Sometimes your personal life can have more of an influence than your FICO score.

    So before you go and apply for financial assistance you may want to sort through your social media profiles. Just because you have your privacy settings on high doesn’t mean that you are completely safe. You never know who your friends may know and how your information can slip through the privacy cracks.

    Social Media Tuneup

    image credit: stockimages/freedigitalphotos.net

    Topics: Social Media