Tag Archives | credit score

How Accepting A Friend Request Will Soon Alter Your Credit Score

credit scoreThe The Next Web writes that you will soon be “empowered” by having every mundane aspect of your life mined for data:

Are you only as good as the company you keep? Before you accept that next friend request, consider what that person says about you, what that association might eventually cost, or be worth – even in the financial sense.

Where you live, who you friend on Facebook, the frequency you shop at Trader Joe’s, how much you spend – all of this information will be picked up, shared, and analyzed amongst the various connected devices and services you use.

This wealth of data will also be applicable to your financial decisions. “Who you are” as a consumer will no longer be based solely on your purchases, investments or credit file, but will also consider your daily routines, such as browsing the Internet, where you shop, and more.

Technology and new services are now making it possible to incorporate entirely new, more relevant data into a credit profile — data that is mostly consumer controlled or contributed and generated by simply gathering and delivering your lifestyle data.

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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.

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On The Reputation Score You Will Soon Be Assigned

Via the The New Inquiry, Rob Horning on how Facebooking will be mandatory:

There is good reason to be concerned about the various data pools of personal information being gathered by communications and social-media companies. It’s used to shape the material conditions of our lives — what we see, what we’re permitted to do, who will talk to us, what sort of service we’ll receive.

It’s no coincidence that [social media management site] Reputation.com is joining forces with the credit-score agencies, as the Economist reports. It’s an extension of the same racket, to create a reputation score that is as actionable as a credit score.

If the reputation score is applied to you, you will have to pay to try to improve it or “clean it up.” But for others, such a score can be used to guide decisions about whether you are worth knowing, worth having as a roommate, worth friending on Facebook, worth offering a microloan to, worth renting a space on Air BnB to, etc., etc.

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