As I blogged last April, there are different variations on how social networks influence creditworthiness, but it may include one or more of the following:
- Your education
- How long you have held jobs
- How many connections you have
- The quality of your connections
- The location and seniority of your connections
Up until now, social media has been used by smaller lenders to contribute toward an alternative scoring model for borrowers who may not otherwise qualify for loans based on traditional criteria.
But a FICO rep recently hinted to The Wall Street Journal that incorporating social media into the FICO score is not outside the realm of possibility, if not now then at some point in the future. This is huge news, as the FICO score influences more than 90 percent of lending decisions.
“There could come a time where certain social media could be predictive and we’re looking at that, but it isn’t yet,” says FICO Senior Consumer-Credit Specialist Anthony Sprauve.
Yes, it sounds vague, and pretty far off, but it was only three years ago that the social media lending model came onto the scene. And already there are a number of lenders in the game, like Lenndo, Lendup, Moven, Kabbage, and Zest Finance.
Give it another three years, and you could very well see your Facebook, Twitter, and LinkedIn profiles lending weight to your FICO credit score.
Do you like the idea of the social media-influenced credit score? (Even for the all-important FICO score?) Why or why not?