Are Lenders Using Facebook To Determine Creditworthiness?

by DeLadurantey Law Office, LLC on March 12, 2014

facebook_logoAccording to a recent CNN article discussing what impacts a consumer’s credit score, it was revealed that an increasing number of lenders are using your social media accounts to impact your credit. It may seem crazy, but some lenders believe that your social connections are a good indicator of your credit worthiness.

For example, if a lending company examines your Facebook friends and discovers you are socially connected with “friends” who are not repaying their loans or who are late in making their payments, your credit score is negatively impacted. If you have numerous online buddies who are past due on their loans, your credit can take an even bigger hit.

This is a scary thought for those of us who have online friends that we don’t quite remember and we aren’t even sure that we know! The CNN article further reveals that some companies go so far as to gather data from not only Facebook, but also your eBay, PayPal and Amazon accounts. They examine whether you actually spend time reading online loan applications and whether you use proper punctuation in completing the application. Finally, they can determine whether your computer is located where you said your work or live to determine creditworthiness.

Whether or not using social media to help determine creditworthiness goes mainstream remains to be seen, but keep this in mind next time you receive a friend request online!

If you are having troubles with a debt collector or an error on your credit report, contact DeLadurantey Law Office for assistance.

The “defender of the little guy,” DeLadurantey Law Office. LLC. handles bankruptcy matters (Chapter 7 and Chapter 13) in Milwaukee, South Milwaukee, West Milwaukee, and Milwaukee County, including the municipalities of Bayside, Brown Deer, Cudahy, Fox Point, Franklin, Glendale, Greendale, Greenfield, Hales Corners, Oak Creek, River Hills, Shorewood, St. Francis, Wauwatosa, West Allis, and Whitefish Bay.  The firm also can handle your debt negotiations, debt relief, and mortgage loan modifications.   Contact DeLadurantey Law Office, LLC by phone: (414) 377-0518.  Like us on Facebook.

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