Credit companies read Facebook

Credit companies in the US are using Facebook and other social notworking sites to decide if people should be loaned money.

According to agencies are looking to see who is on your friends list when they access your credit score.

The logic is that if your friends are responsible credit cardholders and pay their bills on time, you could be a good credit customer.

There is an outfit called Rapleaf which monitors what people tweet or post on Facebook and compiles what it calls social graphs of your likes, dislikes, strengths and weaknesses.

For what it is work it is better to have a wide network of friends helps but if there are negative comments about your business you could be toast.

Joel Jewitt, vice president of business development of Rapleaf, said that it had not reached the point where creditors were accessing the credit reports of your online friends and aren’t using the data to find reasons to reject customers.

Lenders claim that they are using the data mined for cough “marketing purposes” to find out what you may like based on what your friends like. Although we would have thought if you were applying for a loan you might simply like the application to be approved.