Privacy

Facebook Friends Will Determine Creditworthiness

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Looking for a bank loan? You might want to double-check your facebook friends.

The emerging trend in the personal loan industry is using data from Twitter and Facebook to assess creditworthiness.

In an Orwellian “guilt-by-association,” these upstart companies are using the creditworthiness of your Facebook friends and Twitter followers to determine your ability to repay a loan.

The upstart Lenddo readily admits on their FAQ page that they use the reputation and trustworthiness of your friends and connections in social media. Currently, they only offer loans in Columbia and the Philippines, but given the complexity of their business model, rest assured it’s only a matter of time before they make their way to the U.S.

It’s being discussed and even attempted in some lending circles to attempt to document not only an applicant’s place of residence and employment, but the creditworthiness of their neighbors. Live in a neighborhood with a bunch of deadbeats? Chances are – according to them – you’re a deadbeat too.

With companies like Lenddo, if you apply for a loan with them, you consent to all this snooping and spying, of course. You need to provide the company with your Facebook and Twitter passwords, along with a host of other online security information.

 

 

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