Lenders using social sites for loans - KPLC 7 News, Lake Charles, Louisiana

Lenders using social sites for loans

LAKE CHARLES, LA (KPLC) -

You may want to take a second look at your Facebook friend list. A handful of lenders use social sites like Facebook to approve or reject you for a loan.

Traditional lenders rely heavily on credit scores that look at payment history and tend to steer clear of the millions of those who don't have credit scores.

But an article on CNN Money may have some people thinking about ditching a friend or two online.

The article says a handful of tech start-ups are using social data like Facebook to determine the risk of lending to people who have a difficult time accessing credit. And some say it's a good way to do that. 

"Through someone's profile on Facebook or Twitter, or any social media site, I think you can tell a lot about that person and as far as a business aspect, I think they would benefit tremendously because they can tell what kind of person they are," said Casey Villanueva.

Lenddo, Kreditech and Kabbage all admit to browsing your social connections, which they say can be a good indicator of a person's creditworthiness.

Lenddo reported to CNN that if they see your friends on Facebook with someone who was late paying back a loan to them, they assume you'll do the same. And some think that's unfair.

"I think it's creepy honestly because it really should be based on how you pay and when you pay and not based on your Facebook friends because they could be in some sort of bad situation that doesn't reflect you at all," said Jasmine Derbigney.

"I think it's an invasion of privacy. You may as well give the cops your password," said Trevor Lazard.

"I think it's kind of creepy. They can see what you're buying and stuff like that," said Alex Bahan.

Meanwhile, others say it's okay with them.

"It's okay because they are my friends and I trust them," said Louis Alhazmin.

"I think it's awesome. Yeah, I'm okay with it," said Darien Chavez Poullard.

Some suggested hiding your Facebook friends by changing your privacy settings. That way, others can't see who you're friends with and deny you a loan – at least, not because of who you're friends with online.

To see the CNN Money story, click here: http://money.cnn.com/2013/08/26/technology/social/facebook-credit-score/

Copyright 2013 KPLC. All rights reserved.

  • More Local NewsNewsMore>>

  • Terry Miles extradited from Colorado to Texas

    Terry Miles extradited from Colorado to Texas

    Thursday, January 18 2018 6:27 PM EST2018-01-18 23:27:24 GMT
    Terry Miles (Source: CNN)Terry Miles (Source: CNN)

    A man with Sulphur ties who is accused of kidnapping two girls and bringing them with him to Colorado has been returned to Texas. Terrence "Terry" Allen Miles, 44, became the subject of a nationwide manhunt after his roommate, Tonya Bates, 44, was found dead in Round Rock, Texas, and her two daughters missing. Authorities quickly focused on Miles, who has a long criminal history in Southwest Louisiana, and an Amber Alert was issued. Bates was found dead on Dec. 21, 20...

    More >>

    A man with Sulphur ties who is accused of kidnapping two girls and bringing them with him to Colorado has been returned to Texas. Terrence "Terry" Allen Miles, 44, became the subject of a nationwide manhunt after his roommate, Tonya Bates, 44, was found dead in Round Rock, Texas, and her two daughters missing. Authorities quickly focused on Miles, who has a long criminal history in Southwest Louisiana, and an Amber Alert was issued. Bates was found dead on Dec. 21, 20...

    More >>
  • Food for Seniors will not distribute this week in Calcasieu, Beauregard

    Food for Seniors will not distribute this week in Calcasieu, Beauregard

    Thursday, January 18 2018 6:26 PM EST2018-01-18 23:26:44 GMT
    (Source: Pablo)(Source: Pablo)
    The Food for Seniors program in Beauregard and Calcasieu will not be available this week. Tom Hoefer, with the Calcasieu Parish Police Jury, said that delivery trucks were unable to deliver meals from Baton Rouge due to the cold weather. He said a new distribution date for Calcasieu will be announced when the program is able to resume. Copyright 2018 KPLC. All rights reserved.More >>
    The Food for Seniors program in Beauregard and Calcasieu will not be available this week. Tom Hoefer, with the Calcasieu Parish Police Jury, said that delivery trucks were unable to deliver meals from Baton Rouge due to the cold weather. He said a new distribution date for Calcasieu will be announced when the program is able to resume. Copyright 2018 KPLC. All rights reserved.More >>
  • Changes coming to hunting, fishing license sales in Louisiana

    Changes coming to hunting, fishing license sales in Louisiana

    Thursday, January 18 2018 5:27 PM EST2018-01-18 22:27:44 GMT

    The way Louisiana's recreational hunters and fishermen get their licenses is changing.  According to a news release, The Louisiana Department of Wildlife & Fisheries says it's currently transitioning to a new recreational hunting/fishing license sales system. To minimize impact to those who will be purchasing licenses in next few months, please see below. If you will need to purchase a license from a retailer before April 2, it's recommend that you make your purchase b...

    More >>

    The way Louisiana's recreational hunters and fishermen get their licenses is changing.  According to a news release, The Louisiana Department of Wildlife & Fisheries says it's currently transitioning to a new recreational hunting/fishing license sales system. To minimize impact to those who will be purchasing licenses in next few months, please see below. If you will need to purchase a license from a retailer before April 2, it's recommend that you make your purchase b...

    More >>
Powered by Frankly