Facebook can provide a lot of benefits when it comes to connecting with people from all over the world on a personal and professional level. But beware because it also has its pitfalls.
Did you know that who you connect with on this top social networking site can also affect your credit score? They can help you in terms of getting approved for a loan but on the flipside, they can also cause you to get rejected for a loan.
The reason is that some tech startups are now using social data to find out a person’s financial capability and credit history. While traditional lenders depend primarily on a person’s credit score such as FICO to determine if they’re worthy of a loan, there are now lending companies that utilize data from social networking sites to determine an applicant’s creditworthiness. As such, it may be time to be extra cautious in choosing your friends on Facebook.