How Your Social Media Score Will Shape Your Life Options

On the intertwining of social capital and literal capital, the Economist reveals:

Facebook data already inform lending decisions at Kreditech, a start-up that makes loans in Germany, Poland and Spain. Applicants are asked to provide access for a limited time to their account on Facebook or another social network. Much is revealed by your friends, says Alexander Graubner-Müller, one of the firm’s founders. An applicant whose friends appear to have well-paid jobs and live in nice neighbourhoods is more likely to secure a loan. An applicant with a friend who has defaulted on a Kreditech loan is more likely to be rejected.

An online bank that opens in America this month will use Facebook data to adjust account holders’ credit-card interest rates. Based in New York, Movenbank will monitor messages on Facebook and cut interest rates for those who talk up the bank to friends. If any join, the referrer’s interest rate will drop further. Rates and fees will also drop if account holders spend prudently.

Perhaps no company has gone as far as Lenddo, a Hong Kong start-up that owns online lenders in Colombia and the Philippines. Loan-seekers ask Facebook friends to vouch for them. The credit scores of those who have vouched for a borrower are damaged if he or she fails to repay.

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  • Sir Legendhead

    Most of that makes sense, birds of a feather, etc. The last paragraph is a bit of a surprise though. Never knew cosigning could be made so deceptively simple.

  • howiebledsoe

    That is rediculous. Just like in real life, I have some rich friends, some middle class friends, and some working class friends, as well as a few destitute ones. It’s clear that you can glean alot of info from FB, but your various circles of friends have little do do with personal potential. Poor folks who make good tend to leave the poorer parts of town for the more well-heeled neighborhoods, severing their ties with the old crowd and becoming middle class. This is a way to keep poor people poor, it seems to me.

  • Ittabena

    Pressure to join and participate, this should speak volumes to everyone.

  • Haystack

    How long before liking an Occupy video effects your credit rating, or sharing a post about Terrence McKenna gets you turned down for a job as a likely drug user? This is going to become a way for the oligarchy to punish individualism and suppress dissent without going through the traditional routes (laws and the police).

    We need legislation that limits how companies are allowed to use/gather information about the public behavior of individuals, but I doubt that people will realize why it is important to limit this until we’re already living in a surveillance dystopia.

  • BuzzCoastin

    if you need a credit rating to succeed
    you’ve already lost
    a good credit rating is a conman ranking his Mark

    FB is kinda a necessary evil now
    but should be used used sparingly & judiciously
    unless your looking for official visitors from TPB

    • InfvoCuernos

      I’ve always felt that credit was a hustle and its sad and amazing how hard most wage slaves will work just to show the banks how willing they are to put themselves in debt to the banks for life. I like your take on it.
      If you can’t do it with the cash in hand, maybe you shouldn’t do it.

      • BuzzCoastin

        the lender has absolutely nothing to lend
        except the legal authority to create money from nothing
        the lender then has to make sure you qualify

        not qualified to be lent nothing
        but qualified to pay back nothing
        for the bling-bling the nothing was spent on

        now if the Banskster can live off the fruit of nothing
        no reason why sheeple can’t too

        the sheeple don’t like it a psyop
        so let’s call it con game

  • InfvoCuernos

    Most of my “friends” on FB proudly declare themselves to be the lowest, poorest, dirtiest, criminal bastards around, and that’s just my family…

  • Bruteloop

    If you are on Facebook you are part of the problem and culpable. Contrary to accepted opinion it is not a ‘must do’ unless you allow it to be. Carry on signing up and you will get a world you created.

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