ON AIR NOW

LISTEN NOW

Weather

foggy-day
49°
Cloudy
H 75° L 63°
  • foggy-day
    49°
    Current Conditions
    Cloudy. H 75° L 63°
  • cloudy-day
    68°
    Evening
    Cloudy. H 75° L 63°
  • rain-day
    64°
    Morning
    Few Showers. H 71° L 45°
LISTEN
PAUSE
ERROR

The latest top stories

00:00 | 00:00

LISTEN
PAUSE
ERROR

The latest traffic report

00:00 | 00:00

LISTEN
PAUSE
ERROR

The latest forecast

00:00 | 00:00

Lenders using social media to determine creditworthiness

Trending on Facebook

More Popular and trending stories

It's no secret what you say or do on social media can come back to haunt you. But a new Wall Street Journal feature reveals some lending companies are using the sites to determine how creditworthy a person is. 

It could mean bad news for some borrowers. Several observed lending startups tapping into everything from Facebook, Twitter and even the eBay accounts of prospective consumers looking to secure a loan. (Via The Wall Street Journal)

​Several firms said they use social media to find more info on current and prospective clients and to see whether there are discrepancies between what someone puts on a loan application and their online posts. (Via GeoBeats)

It sometimes will have even heavier influence than a person's FICO score, the credit score generally used to estimate risk. Instead of pure data compilation, lenders are able to weigh actual human activity in evaluations. (Via Khan Academy)

A writer for GigaOM says it just means one more point for credit evaluators to consider in what the site calls "data Darwinism … and has led to criticism from consumer advocates."

That criticism is mainly due to privacy concerns.

Companies will take into consideration how close prospective borrowers will seem with their friends. Some even check to see whether you use an expensive phone to manage your accounts. (Via Uproxx)

And in a similar manner to what employers and colleges have been known to check up on, lenders also evaluate social activities like how often a person is seen in pictures out at a bar. (Via USA Today)

But it could also be an advantage for those who manage accounts successfully. A higher viewership on a LinkedIn profile might make you more appealing, and favorable ratings on eBay could pique a lender's interest.

Regulators are reportedly looking into the trend. The Federal Trade Commission says it plans to host a series of seminars in the spring over emerging privacy issues in credit evaluations.

- See more at Newsy.com

Read More
VIEW COMMENTS

There are no comments yet. Be the first to post your thoughts. or Register.

The Latest News Headlines

  • Police in Henry County searched a hotel in McDonough on Monday morning after getting reports of an armed man at the hotel. >> Read more trending news
  • We are learning more about the California home where police say 13 siblings were kept in subhuman conditions by their parents.  >> Watch the news report here Although the children in the home, ages 2 to 29, were only allowed to bathe twice a year and eat once a day, they were allowed to write in journals, authorities said. District Attorney Mike Hestrin said in a press conference that the children kept hundreds of journals, and he believes they will be “very significant” in the upcoming court case, the Desert Sun reports. Hestrin added that he thinks the journals will provide “strong evidence of what occurred in that home.” >> Parents accused of holding their 13 children captive appear in court Researchers are also interested in the journals as they detail the firsthand accounts of the alleged abuse. One academic told the Desert Sun: “There is a good chance that being able to write may have kept them sane. In an interesting way, this may have helped them come to terms with the bizarre world they lived in.” He even compared them to the journals kept by Anne Frank. >> Dogs found in perfect condition in home where 13 siblings held captive The journals could prove valuable for prosecutors as they might provide evidence that could be used to cross-examine the parents, David and Louise Turpin. The Turpins are facing life in prison for a series of charges, including torture. >> Read more trending news  The journals have not been made public, and law enforcement officials are currently in the process of reviewing them. The conditions in the home were unimaginable, authorities said. The children reportedly were beaten and chained to furniture. Neighbors recalled seeing them marching during the night. They were discovered when one girl escaped and managed to find a police officer, authorities said. Read more here.
  • John Coleman, who helped found and develop The Weather Channel, died Saturday at his home in Las Vegas. He was 83. >> Read more trending news Coleman, a longtime weatherman, innovated the position when he started at Good Morning America, according to the Washington Post.  Coleman started The Weather Channel in 1981 with Joseph D’Aleo. Coleman left the network and continued forecasting on stations in New York and Chicago. He last worked in San Diego until he retired in 2014, according to the Washington Post.  The Associated Press contributed to this report.

The Latest News Videos