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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 lookign at your social media to determine whether or not they want to lend to you.These lending companies think that people with good money habits will congregate on social media websites. So, if you have a lot of social media friends with good credit it will reflect on your credit as well.

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 companies are incredibly dynamic and they are 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, which is still useful to us.They say that they have found a 20% correllation between online data and borrowing.

Say you are just an individual who used credit software to repair their credit. Will you also be affected by these new trends? It can only be assumed that eventually the average joe will be analyzed in just the same way.The most important thing that social media reveals is whether or not businesses can really do what they claim to do. As lenders get better at using this to predict if a person or company is reliable, it will force those companies to consider it when doing business with others.

Assuming that the data is accurate, or even if it isn't, people are going to use it to figure out who to do business with. If you or your company is making mistakes on social media websites, no one is going to want to work with you.

Basically, consumers and businesses need to understand that their social media use isn't without consequence. Not just lenders, but employers, cops, and teachers are all watching what you do. It's important to at least be aware of how you act online. It's not something that anyone could have predicted. Who would have known that Facebook and other online services would end up playing such a serious role in our lives? So, if you are using credit software and handling your own credit, be aware of social media factors as well.




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