So the newest credit-rating gimmick being used by lenders is leveraging your social media. As part of your application, you're asked to provide your Twitter, Facebook, Gmail, etc. accounts, and then, based on who you know, and what is known about them, your credit score is adjusted up/down. Oh, and they reserve the right to let your friends know if you default.
Um … no. Or, rather, hell no.
Of course, if they all do it, it would be hard to avoid. And one could argue it harkens back to the day when you got a loan from your local banker, who knew your rep around town and what sort of deadbeats and/or fine, upstanding citizens you hung out with.
But … no.
It's amusingly framed as a way to get you, the customer, access to additional services [if you're creditworthy enough], but I suspect the intent is to actually deny you access to services if they don't like the cut of your credit jib. And I do have to wonder if the content of your social media won't start to play a role, too ("Fiscal conservatism is associated in our heads with better credit risks, so be sure and red-flag anyone who votes for a liberal, or who speaks well of OWS, or …"). It's a great way to get around all those things you aren't supposed to decide loans on (race, national origin, religion, etc.), esp. if you keep your algorithm nice and quiet … #ddtb
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Facebook and Twitter can hurt your credit score
You already knew Facebook and Twitter can hurt relationships with friends, family, or your significant other. Facebook and Twitter may hide another danger: They can hurt your credit score.
Given the rate of minority incarceration (much higher than for whites – some might say because of profiling), it wouldn’t be hard to make a case that social-media credit scoring is racially discriminatory.