Judged By The Company You Keep
According to CNN Money, one lending company, Lenddo, uses a proprietary algorithm to assess a borrower’s Facebook friends to determine if any of them have been late making payments to, well, Lenddo. And if you frequently interact with your deadbeat friend, so much the worse for you. According to the company’s website, they also look at Twitter, Linkedin and Yahoo and consider online behavior patterns. Many might think it unfair to judge a person’s credit worthiness by their Facebook or Linkedin associates, or by the websites they visit, however shocking or bizarre they may be. After all, most people on friend lists are old school friends or even friends of friends one barely knows. But, says Jeff Stewart, CEO and co-founder of Lenddo, "It turns out humans are really good at knowing who is trustworthy and reliable in their community. What's new is that we're now able to measure through massive computing power."
Another lender, Kreditech, gathers data in much the same way from Facebook, Amazon and Ebay. Curiously, it also considers how well an applicant fills out their online application, as well as how much time a borrower spends reading information about the loan (read fine print) on their site. Using all caps, and presumably bad spelling and grammar, can knock off points. If either catches on, a lot of people will be in big, big trouble.