The Wrong Facebook Friends Can Sink Your Credit Rating

File:Social_Web_Share_ButtonsAdrianne Jeffries explains the downside of maintaining a social media presence for Betabeat:

Let’s take a trip with the Ghost of Christmas Future. The year is 2016, and George Bailey, a former banker, now a part-time consultant, is looking for a 30-year fixed-rate mortgage for a co-op in the super-hot neighborhood of Bedford Falls (BeFa). He has never missed a loan payment and has zero credit card debt. He submits his information to the online-only PotterBank.com, but halfway through the application process, the website asks for his Facebook login. Then his Twitter. Then LinkedIn. The cartoon loan officer avatar begins to frown as the algorithm discovers Mr. Bailey’s taxi-driving buddy Ernie was once turned down by PotterBank for a loan; then it starts browsing his daughter Zuzu’s photo album, “Saturday Nite!” And what was this tweet from a few years back: “FML, about to jump off a goddamn bridge”?

A new wave of startups is working on algorithms gathering data for banks from the web of associations on the internet known as “the social graph,” in which people are “nodes” connected to each other by “edges.” Banks are already using social media to befriend their customers, and increasingly, their customers’ friends. The specifics are still shaking out, but the gist is that eventually, social media will account for at least the tippy-top of the mountain of data banks keep on their customers.

“There is this concept of ‘birds of a feather flock together,’” said Ken Lin, CEO of the San Francisco-based credit scoring startup Credit Karma. “If you are a profitable customer for a bank, it suggests that a lot of your friends are going to be the same credit profile. So they’ll look through the social network and see if they can identify your friends online and then maybe they send more marketing to them. That definitely exists today.”

And in the last year or so, financial institutions have started exploring ways to use data from Facebook, Twitter and other networks to round out an individual borrower’s risk profile…

[continues at Betabeat]

majestic

Majestic is gadfly emeritus.

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40 Comments on "The Wrong Facebook Friends Can Sink Your Credit Rating"

  1. Fuck Facebook, fuck Twitter, fuck Google +, and fuck iPads and smartphones.

    Why not just install webcams in your house connected directly to the banks and the “authorities?”

  2. Fuck Facebook, fuck Twitter, fuck Google +, and fuck iPads and smartphones.

    Why not just install webcams in your house connected directly to the banks and the “authorities?”

  3. Fuck Facebook, fuck Twitter, fuck Google +, and fuck iPads and smartphones.

    Why not just install webcams in your house connected directly to the banks and the “authorities?”

  4. Fuck Facebook, fuck Twitter, fuck Google +, and fuck iPads and smartphones.

    Why not just install webcams in your house connected directly to the banks and the “authorities?”

  5. Fuck Facebook, fuck Twitter, fuck Google +, and fuck iPads and smartphones.

    Why not just install webcams in your house connected directly to the banks and the “authorities?”

  6. Fuck Facebook, fuck Twitter, fuck Google +, and fuck iPads and smartphones.

    Why not just install webcams in your house connected directly to the banks and the “authorities?”

  7. Fuck Facebook, fuck Twitter, fuck Google +, and fuck iPads and smartphones.

    Why not just install webcams in your house connected directly to the banks and the “authorities?”

  8. Fuck Facebook, fuck Twitter, fuck Google +, and fuck iPads and smartphones.

    Why not just install webcams in your house connected directly to the banks and the “authorities?”

  9. Coming soon MICROMANAGEMENT!!!!

  10. Coming soon MICROMANAGEMENT!!!!

  11. Coming soon MICROMANAGEMENT!!!!

  12. Coming soon MICROMANAGEMENT!!!!

  13. Coming soon MICROMANAGEMENT!!!!

  14. Coming soon MICROMANAGEMENT!!!!

  15. Brock Lynch | Dec 14, 2011 at 11:16 pm |

    Screw Facebook.com.

  16. Brock Lynch | Dec 14, 2011 at 7:16 pm |

    Screw Facebook.com.

  17. Anonymous | Dec 14, 2011 at 11:26 pm |

    Fuck this, It’s been a long time coming; good bye facebook, hello real world.

  18. Fuck this, It’s been a long time coming; good bye facebook, hello real world.

  19. Seamus Dubh | Dec 15, 2011 at 12:23 am |

    Now tell me, who really didn’t see this coming.

  20. Seamus Dubh | Dec 14, 2011 at 8:23 pm |

    Now tell me, who really didn’t see this coming.

  21. Suddenly Spam! | Dec 15, 2011 at 12:29 am |

    What if we don’t use social media? Oh, I know what comes next! We have to.

  22. What if we don’t use social media? Oh, I know what comes next! We have to.

    • Butter Knife | Dec 14, 2011 at 9:45 pm |

      I deleted my fb account a few weeks back.

      Part of me still wonders if, had I been single at the time, I could actually form a relationship without one? I know that I’ve already missed being invited to parties and other events, and I am genuinely curious to see just what effect this will have on my social life going forward. It has had little impact on my day-to-day life, since I very rarely used facebook even when I had an account, but with the number of social conventions that seem to have shifted almost entirely onto the network I’m still not sure what will happen in the long-term.

      On the bright side, I no longer get yelled at by my friends for failing to respond to their facebook invitations and messages. I also see 100% fewer requests to play crappy Zynga games.

      • E.B. Wolf | Dec 14, 2011 at 10:04 pm |

        Life after Facebook. That could make an interesting blog.

      • I stopped using and deleted my Myspace in 2007 and haven’t looked back. 

        I’m confused as to why a layperson would want a twitter account also- are people really interested in what some fat guy from the northwest has to say about his cat? As interested as I am in the little buggers antics, nobody else is.

  23. Got in trouble with the gf the other night. Kept rolling her over in bed, and when she asked what I was doing, I responded “Trying to find the edge with the least weight.” Damn you, Djikstra.

  24. Got in trouble with the gf the other night. Kept rolling her over in bed, and when she asked what I was doing, I responded “Trying to find the edge with the least weight.” Damn you, Djikstra.

  25. E.B. Wolf | Dec 15, 2011 at 1:39 am |

    You won’t have to. pretty soon, they’ll literally be flies on your wall.
    http://disinfo.com/2011/12/insect-cyborgs-may-be-the-spies-and-first-responders-of-the-future/ 

  26. Butter Knife | Dec 15, 2011 at 1:45 am |

    I deleted my fb account a few weeks back.

    Part of me still wonders if, had I been single at the time, I could actually form a relationship without one? I know that I’ve already missed being invited to parties and other events, and I am genuinely curious to see just what effect this will have on my social life going forward. It has had little impact on my day-to-day life, since I very rarely used facebook even when I had an account, but with the number of social conventions that seem to have shifted almost entirely onto the network I’m still not sure what will happen in the long-term.

    On the bright side, I no longer get yelled at by my friends for failing to respond to their facebook invitations and messages. I also see 100% fewer requests to play crappy Zynga games.

  27. Butter Knife | Dec 15, 2011 at 1:45 am |

    I deleted my fb account a few weeks back.

    Part of me still wonders if, had I been single at the time, I could actually form a relationship without one? I know that I’ve already missed being invited to parties and other events, and I am genuinely curious to see just what effect this will have on my social life going forward. It has had little impact on my day-to-day life, since I very rarely used facebook even when I had an account, but with the number of social conventions that seem to have shifted almost entirely onto the network I’m still not sure what will happen in the long-term.

    On the bright side, I no longer get yelled at by my friends for failing to respond to their facebook invitations and messages. I also see 100% fewer requests to play crappy Zynga games.

  28. E.B. Wolf | Dec 15, 2011 at 2:04 am |

    Life after Facebook. That could make an interesting blog.

  29. Suddenly Spam! | Dec 15, 2011 at 4:00 am |

    I stopped using and deleted my Myspace in 2007 and haven’t looked back. 

    I’m confused as to why a layperson would want a twitter account also- are people really interested in what some fat guy from the northwest has to say about his cat? As interested as I am in the little buggers antics, nobody else is.

  30. Ellenripley77 | Dec 15, 2011 at 5:14 am |

    Banks have got us all into enough trouble. I think it’s time they cleaned up their act and put their dodgy methods to rest. Hey here’s an idea bankers: why not try an ethical approach to work? Clearly it’s a business model you’ve never thought of. In this story, they really put the “W” in banker.

  31. Ellenripley77 | Dec 15, 2011 at 1:14 am |

    Banks have got us all into enough trouble. I think it’s time they cleaned up their act and put their dodgy methods to rest. Hey here’s an idea bankers: why not try an ethical approach to work? Clearly it’s a business model you’ve never thought of. In this story, they really put the “W” in banker.

  32. Ronniedobbs | Dec 15, 2011 at 2:58 pm |

    there’s an app for that

  33. alexandre mcfly | Feb 9, 2012 at 10:49 am |

    OH DEAR GOD, FUCK THIS.

  34. Porkstickricky | Feb 20, 2012 at 4:25 pm |

     Do I have to join spybook to comment?

Comments are closed.