A growing number of lenders are turning to social media when determining a loan applicant’s credit-worthiness.
The Wall Street Journal reported on Jan. 8 that some companies, particularly lending startups, look at social media profiles to verify certain types of information. Credit scoring agencies like Fair Isaac are also reportedly weighing the addition of social media metrics to their own systems.
In an interview with the Journal, LendUp co-founder and CEO Sasha Orloff said that social media can play a role in how credit-worthy a person is.
“It’s one of the tools we use to do underwriting,” Sasha explained. “Do you have 4,000 friends but none are that close, or do you have 30 people but they’re very close? There are ways to measure how engaged and how strong your community ties are.”
To learn more about this new use for social media, read the full story by clicking here.
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