Facebook posts could harm your credit score

FacebookSome of the top credit rating companies are now using people’s social media accounts to assess their ability to repay debt.

So if you ever want to loan money from a bank or credit agency it is vital you avoid saying some things on the social notworking site.

Will Lansing, chief executive at credit rating company FICO, told the FT that if you look at how many times a person says ‘wasted’ in their profile, it has some value in predicting whether they’re going to repay their debt.”

FICO is working with credit card companies to use several different methods for deciding what size loans people can handle, and using non-traditional sources like social media allows them to collect information on people who don’t have an in-depth credit history.

FICO and TransUnion have had to find alternative ways to assess people who don’t have a traditional credit profile — including people who haven’t borrowed enough to give creditors an idea of what kind of risk they pose.

According to Lansing, FICO is “increasingly looking at data on a spectrum” to determine an individual’s credit-worthiness — with credit card repayment history being the most important factor on one end and information volunteered via social media on the other end.

Credit rating companies are also using individuals’ payment history on phone bills, utility bills and even movie rentals.