Facebook is used as a simple way to share and connect with friends, but it could have an impact if you are trying to get a loan.
Credit scores are still important when determining one’s eligibility for a loan, and thanks to today’s social networks, some lenders are leveraging the power of the social graph.
Lenddo is a startup that allows people to build credibility, and apply for loans based on their “Lenddo score.”
Analyzing your social media connections, it can determine whether or not you are a good applicant.
For example, Facebook friends who use Lenddo and were late paying back a loan or even worse, have failed to pay back a loan, can dramatically affect your eligibility.
However, Lenddo is not the only loan service that leverages social networks.
Kabbage was founded in February 2009, and is geared towards helping small businesses. By granting access to such accounts as PayPal or eBay, it can get an inside look at actual sales, and deliverability.
Going further, Kabbage found that small businesses who link their Twitter or Facebook accounts are 20 percent less likely to fall back on their loans.
Facebook may seem like an innocent use of one’s time, but who you are connected with could have a larger impact than you might think.