Thursday, 16 February 2012

Facebook + Big Banks

Apparently there is a new system in place that will either help you or ruin you depending on who your friends are on facebook. I'm talking about your credit scores and the ability for you to be approved or denied for a loan.

Quoted from Dan Tynan's article on PC World

"You know those deadbeat friends of yours on Facebook? They could end up killing your credit score and costing you a loan. At the very least, your no-account pals could bump up your interest rate.
A chilling story in the New York Observer’ BetaBeat blog this week details the efforts of several online banks that plan to analyze your social media profiles to determine how big a credit risk you are. It’s yet more evidence that, unlike Las Vegas, what happens on Facebook doesn’t stay on Facebook – and could come back to bite you in unexpected and unpleasant ways.
How are banks going to use this information? First, they’re going to use your friends list to troll for future prospects. If you just took out a line of credit against the equity in your house, maybe your friends will too – assuming they’ve got any equity left."

Shit just got real.