Social Media And Your Credit History

Very few people are aware of the fact that social media plays a big role when employers are seeking new employees and even more recently lenders when assessing credit risks of potential borrowers. Credit lenders go through all the details of your social media life to determine whether they will give you loans or not and if they do, the interest rates to place on the loans among other terms and conditions. They use this as part of your credit history even after they have received your credit report from credit bureaus and Fico. This simply means that if you are a social media user you need to be particularly careful about a number of issues including people you interact with, messages you share and pages you visit among others. Your social media life may have either a positive or negative impact on your credit history but most lenders will not be looking for the good.

Public Posts Touching On Your Credit History Are Damaging

When you are on Facebook, Twitter and Google + you are often asked to speak your mind out and if you are facing a financial crisis you are highly likely to post something inappropriate out of sheer distress, for example, when lenders won’t take your requests into consideration because of a bad credit history. It might as well be a simple matter of requesting for help from your friends and one of the replies you get paints you as one who can’t repay your debts. You might as well find yourself posting something imprudent on another page or even retweeting a negative statement about credit or lenders. When lenders get access to your social media details and see such posts they will give you thumbs down and chances are very high that they won’t even try to process your application.

Your Friends, Acquaintances and Followers Can Make You Lose Your Chances at Loans

The common adage “show me your friends and I will tell you who you are” shouldn’t be taken lightly especially if you are a social media addict because lenders are just as much interested in the people you interact with as they are interested in your credit report. It may sound very unfair but even when you have a good credit history and yet you surround yourself with people who aren’t at your level creditors will think you are similar to them. What’s more when your friends or followers post stupid stuff like asking you for money for crack cocaine it makes lenders think you will waste their money. It gets even worse when your friends spill out damaging stuff about how you have refused to repay them or some other friends. Lenders view these as signals and insights into your spending lifestyle and unfortunately sometimes the data isn’t entirely true.

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Beware Of Data Poachers on Social Media

This is somewhat the single biggest risk when using social media because there are lenders crazy enough to go after your social media data from poachers in order to get to know more about your credit history. On Facebook people can actually download all their data in PDF form and given that there are brilliant hackers out there who know how to get this data they will steal it from you and show it to lenders and this is where your credit life goes haywire. Even those private messages you share when you have borrowed money and can’t repay come into play here.

Social Media Can Be Helpful To Your Credit History

Essentially, if lenders see positive posts, positive friends and positive private data they will give you the loans willingly and at favorable interest rates. Otherwise the positive bit of social media and credit history only falls on the lenders because they get to know their clients at an honest level and while at it avoid very big risks and make profits from the good ones.

You could also use social media as a platform for seeking help but as you should expect it might push away some potential lenders because they might think financial pitfalls are part of your life.

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