Wednesday, January 04, 2012

Here's an interesting article from LearnVest: How Facebook Can Hurt Your Credit Score


HOW FACEBOOK
CAN HURT YOUR CREDIT SCORE


LearnVest Has A Plan That's Perfect For YouForget "you are what you eat." When it comes to your trustworthiness as as borrower, you are who you know ... online.

Social networks are now being used by some lenders to evaluate whether you're likely to pay them back.

The New York Observer reports that, while this methodology is still a few years away from common use by major banks, some smaller institutions already use an algorithm based on input from a person's various social networks to determine her creditworthiness. And more are likely to adopt the practice in the future.

Here's the kicker: The information used by the algorithm isn't just what you've made public—the banks are requiring your login information. Everything you can see, they can see.

For a consumer who wants a loan, banks having more information isn't necessarily better—especially when it's open to interpretation.

CAN YOU FIGHT BACK? 

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