Social Media and Credit Scoring
This blog has previously discussed how more financial organizations are beginning to consider alternative forms of data in determining whether a customer will be a strong borrower. Everything from paying rent to utility bills can be considered, but some reports show that there are even more surprising ways to track an individual's payment history.
A recent CNN Money article reported on this alleged trend, saying that some lenders are finding social networking trends to be good indicators of trustworthy borrowers.
Lenddo is one such company, and co-founder and CEO Jeff Stewart told the news source that an individual's Facebook friends could negatively affect his or her standing with the company. If it is determined that these friends are delinquent themselves, and a potential borrower interacts with them frequently, it could alter his or her standing with Lenddo.
Additionally, the German company Kreditech will consider a client's eBay or Amazon shopping accounts. Even filling out the organization's online application in all caps will negatively impact a credit score, according to co-founder Sebastian Diemer.
John Ulzheimer, a credit expert at the website CreditSesame, explained to the news source that social data isn't necessarily indicative of whether a borrower will remain timely on paying back his or her loans. Ulzheimer added that while FICO uses just a handful of factors, that organization is "incredibly predictive of risk."
Regardless of whether a financial institution is considering using social media to find creditworthy borrowers, it is essential that it keeps any credit scoring software up-to-date. As consumers continue to gain confidence, and look into home, auto or other types of loans, banks want to ensure that they are making wise investments.
With comprehensive and current lender software, organizations can guarantee that chosen borrowers have strong payment histories and will make timely payments on any future loans.
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This blog has previously discussed how more financial organizations are beginning to consider alternative forms of data in determining whether a customer will be a strong borrower. Everything from paying rent to utility bills can be considered, but some reports show that there are even more surprising ways to track an individual's payment history.
A recent CNN Money article reported on this alleged trend, saying that some lenders are finding social networking trends to be good indicators of trustworthy borrowers.
Lenddo is one such company, and co-founder and CEO Jeff Stewart told the news source that an individual's Facebook friends could negatively affect his or her standing with the company. If it is determined that these friends are delinquent themselves, and a potential borrower interacts with them frequently, it could alter his or her standing with Lenddo.
Additionally, the German company Kreditech will consider a client's eBay or Amazon shopping accounts. Even filling out the organization's online application in all caps will negatively impact a credit score, according to co-founder Sebastian Diemer.
John Ulzheimer, a credit expert at the website CreditSesame, explained to the news source that social data isn't necessarily indicative of whether a borrower will remain timely on paying back his or her loans. Ulzheimer added that while FICO uses just a handful of factors, that organization is "incredibly predictive of risk."
Regardless of whether a financial institution is considering using social media to find creditworthy borrowers, it is essential that it keeps any credit scoring software up-to-date. As consumers continue to gain confidence, and look into home, auto or other types of loans, banks want to ensure that they are making wise investments.
With comprehensive and current lender software, organizations can guarantee that chosen borrowers have strong payment histories and will make timely payments on any future loans.
[:es]This blog has previously discussed how more financial organizations are beginning to consider alternative forms of data in determining whether a customer will be a strong borrower. Everything from paying rent to utility bills can be considered, but some reports show that there are even more surprising ways to track an individual's payment history.
A recent CNN Money article reported on this alleged trend, saying that some lenders are finding social networking trends to be good indicators of trustworthy borrowers.
Lenddo is one such company, and co-founder and CEO Jeff Stewart told the news source that an individual's Facebook friends could negatively affect his or her standing with the company. If it is determined that these friends are delinquent themselves, and a potential borrower interacts with them frequently, it could alter his or her standing with Lenddo.
Additionally, the German company Kreditech will consider a client's eBay or Amazon shopping accounts. Even filling out the organization's online application in all caps will negatively impact a credit score, according to co-founder Sebastian Diemer.
John Ulzheimer, a credit expert at the website CreditSesame, explained to the news source that social data isn't necessarily indicative of whether a borrower will remain timely on paying back his or her loans. Ulzheimer added that while FICO uses just a handful of factors, that organization is "incredibly predictive of risk."
Regardless of whether a financial institution is considering using social media to find creditworthy borrowers, it is essential that it keeps any credit scoring software up-to-date. As consumers continue to gain confidence, and look into home, auto or other types of loans, banks want to ensure that they are making wise investments.
With comprehensive and current lender software, organizations can guarantee that chosen borrowers have strong payment histories and will make timely payments on any future loans.
[:it]This blog has previously discussed how more financial organizations are beginning to consider alternative forms of data in determining whether a customer will be a strong borrower. Everything from paying rent to utility bills can be considered, but some reports show that there are even more surprising ways to track an individual's payment history.
A recent CNN Money article reported on this alleged trend, saying that some lenders are finding social networking trends to be good indicators of trustworthy borrowers.
Lenddo is one such company, and co-founder and CEO Jeff Stewart told the news source that an individual's Facebook friends could negatively affect his or her standing with the company. If it is determined that these friends are delinquent themselves, and a potential borrower interacts with them frequently, it could alter his or her standing with Lenddo.
Additionally, the German company Kreditech will consider a client's eBay or Amazon shopping accounts. Even filling out the organization's online application in all caps will negatively impact a credit score, according to co-founder Sebastian Diemer.
John Ulzheimer, a credit expert at the website CreditSesame, explained to the news source that social data isn't necessarily indicative of whether a borrower will remain timely on paying back his or her loans. Ulzheimer added that while FICO uses just a handful of factors, that organization is "incredibly predictive of risk."
Regardless of whether a financial institution is considering using social media to find creditworthy borrowers, it is essential that it keeps any credit scoring software up-to-date. As consumers continue to gain confidence, and look into home, auto or other types of loans, banks want to ensure that they are making wise investments.
With comprehensive and current lender software, organizations can guarantee that chosen borrowers have strong payment histories and will make timely payments on any future loans.
[:tr]This blog has previously discussed how more financial organizations are beginning to consider alternative forms of data in determining whether a customer will be a strong borrower. Everything from paying rent to utility bills can be considered, but some reports show that there are even more surprising ways to track an individual's payment history.
A recent CNN Money article reported on this alleged trend, saying that some lenders are finding social networking trends to be good indicators of trustworthy borrowers.
Lenddo is one such company, and co-founder and CEO Jeff Stewart told the news source that an individual's Facebook friends could negatively affect his or her standing with the company. If it is dete
rmined that these friends are delinquent themselves, and a potential borrower interacts with them frequently, it could alter his or her standing with Lenddo.
Additionally, the German company Kreditech will consider a client's eBay or Amazon shopping accounts. Even filling out the organization's online application in all caps will negatively impact a credit score, according to co-founder Sebastian Diemer.
John Ulzheimer, a credit expert at the website CreditSesame, explained to the news source that social data isn't necessarily indicative of whether a borrower will remain timely on paying back his or her loans. Ulzheimer added that while FICO uses just a handful of factors, that organization is "incredibly predictive of risk."
Regardless of whether a financial institution is considering using social media to find creditworthy borrowers, it is essential that it keeps any credit scoring software up-to-date. As consumers continue to gain confidence, and look into home, auto or other types of loans, banks want to ensure that they are making wise investments.
With comprehensive and current lender software, organizations can guarantee that chosen borrowers have strong payment histories and will make timely payments on any future loans.
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