Wednesday, November 20, 2013

After Fixing Credit Reports, Pay Attention To Your Social Presence.

By Tom Hatch


It's widely known now that what you do on social media sites tells the website what kinds of ads to show you or friends to suggest to you. But now, lenders are also looking at your social media to determine whether or not they want to lend to you. These businesses hold the theory that birds of a feather flock together, meaning that responsible members of credit will speak to other responsible members of credit. In other words, they're thinking about who you're interacting with on social media and how you're interacting with them.

Credit software can get your score back up, but it's up to you to make sure that your reputation stays solid.There's a new company that offers cash advances to small businesses called Kabbage. Sure, they look at the customer's FICO score. But they also look at online data from major sites like eBay, Facebook, Twitter, Paypal, and many others.

Small businesses are incredibly dynamic and they're changing all the time. To understand the true color of the company, they wanted to use some thing real-time and current than a FICO score, that is still helpful to us.The organization says, it has made a direct correlation between positive social data minimizing delinquency rates -- to the tune of 20%.

Say you are just an individual who used credit software to fix their credit. Will you also be affected by these new trends? In the future, surely every person will be scrutinized in much the same way.The reason lenders see these social data points as a good thing is that they can help prove that the company is reliable and can actually do what it claims to do, whether they are selling a good or service. More and more, individuals and companies will be pressured into being reliable and doing business well since they can be scrutinized for credit in this way.

The only way social networking data would be used to decide whether or not to do business is if that data is actually meaningful. So when your Facebook activity suggests that you're less inclined to be a profitable prospect, then it is completely reasonable to expect that businesses may not want [to do business with you].

The bottom line is that consumers -- and businesses -- need to comprehend that their social activities don't go unnoticed. It's not just the social networks that are watching you, but now there are people outside who are extremely interested in what you're doing. This just underscores the necessity to be careful of who you friend and the way you act. This is something that no one could have imagined when Facebook launched years ago. No one could have thought it might someday play a role in something like risk assessment. So, if you are using credit software and handling your own credit, be aware of social media factors as well.




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