“Big data” creditworthiness is on the verge of going mainstream. While traditional lenders rely on your credit scores, a handful of startup lenders are using an applicant’s social media connections to determine whether to accept or reject a loan. These new financial lending companies believe that the quality of an applicant’s social media connections is a good indicator of creditworthiness.
One such company, Lenddo, filters through your Facebook connections to see if any of your friends were late paying back a loan to Lenddo. If the delinquent friend is someone you frequently interact with, then your chances of getting a loan through Lenddo is much more difficult.
Another such company, Kreditech, sifts through Facebook, Amazon and eBay accounts. The company also gives additional points to applicants if they follow all directions on their required loan application forms.