Will Social Connections Soon Shape Credit Ratings?

In the near future, could a consumer’s Facebook connections or mobile search history determine whether or not they are approved for a loan? As Slate reports, a new generation of companies is trying to make that dream (nightmare?) a reality by deploying algorithms, which “sieve through such data to separate trustworthy borrowers from those likely to default and to price their loans accordingly.”

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1 comment about "Will Social Connections Soon Shape Credit Ratings? ".
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  1. Solange Welsh from DaisyS, February 5, 2013 at 4 a.m.

    Well, I do not think that that’s a good idea and I think that there are lots of consumers who are agree with me. Today it’s hard to hide something but I think that there should be private things and I would not like if people who I don’t even know would have an access to my personal financial information. It’s clear that consumers try to identify trustworthy borrowers but I think that everything should have its limits. If I will decide to apply for loans or payday loans online then I will provide such information voluntarily to the lender I have chosen but if I am not going to borrow money then I do not want someone to have access to the state of my credit score.