Thursday, February 29, 2024

Credit ratings provided by Social Media?

By DAC000 , in Fintech , at December 2, 2019 Tags:

in a very significant move US Regulators have now officially approved the use of “alternative data” when making credit decisions. Controversial in America and illegal in The EU, it will be interesting to see this played out.  About a two-minute read.

Comment: Now lenders will be able to request your Social Media profiles and use this information – in addition to age, residence, income and repayment data – when making lending decisions. This is troublesome, as, for example, if you have friends who might have defaulted on loans lenders may look at you differently. EVEN IF your credit is otherwise perfect.