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Facebook friends could be blamed for rejected loan

  • A few startups have begun to determine whether or not to loan you money by checking out the list of friends you have on Facebook. For instance, if Lenddo is checking out your friends on the social networking site and finds out the names of anyone who has paid his loan late, that could be an issue for you depending on how often you interact with that person. 

    Kreditech also looks at data from Amazon, eBay and PayPal accounts. It gives the users an option to link their accounts to their social networking sites. in order to up their scores with Kreditech. 

    Lenddo's CEO said humans are efficient at determining as to who is trustworthy in the community. "What's new is that we're now able to measure through massive computing power."

    He mentioned that only a few people have been affected by this type of data gathering. 

    Evidence suggests that this practice could go mainstream. 

    Tagged as: Credit loans, Facebook friends, Data gathering for loans, Social networking sites, Technology News