Saving A Buck: Could Facebook friends impact your credit?
OKLAHOMA CITY — Most of us do not consider our Facebook accounts as something that would impact our finances.
Recently, an article about how your friend list could dictate whether you get approved for a loan has been circulating on the social media site.
Turns out there is truth to the claim.
While many Facebook users admit to accepting friend requests from those they barely know, experts say it may not be a good idea.
Not only does it reduce your privacy but it could cause a financial burden down the road.
Tracy Ann Miller, with Red River Advisors, said, “Some people just want friends, so they friend everybody. That’s just not a good idea.”
Recent reports show the lender Lenddo actually looks at your Facebook friends.
If any of those friends have been late paying back a loan to that company, your loan request could be denied.
Miller says while it’s just one lender now, it could likely become more popular as social media continues to grow.
She said, “We’re sharing everything about ourselves online and we don’t really know how people are going to use it.”
Right now, you could likely fight that denial; however, she says this is just one reason we should all check our credit scores.
Checking scores allows you to dispute any errors and stay aware of how much credit you are using compared to how much you have.
Miller says it’s good to keep your usage at about 10 percent or less of your available credit.
Making sure your credit is in order can help you get that loan even if some of your friends are not as responsible.
Keep in mind technology is growing and changing fast, which means you never know how what you post and who you friend on any social media site could impact your future.
Miller said, “It’s only going to become more pervasive and invasive.”
According to Lenddo’s website, the lender who is using Facebook to determine whether or not you get a loan, they only use approved methods to access a potential borrower’s social media sites.