According to a post on allfacebook this maybe one way of companies agreeing you can have a loan, or not!
Loans (Photo credit: zingbot)
How you socialize on-line, who with, and how often can make or break your loan application: True or false? It is true, surprisingly. And it is likely to become more so, in the very near future according to a number of lenders!
With banks still reluctant to lend and a rapid rise in sub-prime customers, it is more essential than ever to be realistic about the responsibility of lending money to finance big-ticket items with long-term repayment schedules. This is in the best interests of both parties.
Contrary to the picture painted by some commentators, who are keen to insist that finance companies are ruthless operators, luring unsuspecting and non-credit-worthy clients into their snares, those of us who are in the business actually take our applicants very seriously, indeed. We would never want to put anybody into an untenable, unrealistic, and unaffordable position, whereby they were compromising their entire lifestyle for the sake of, say, a new car.
Likewise, we do not want to take on customers who are not going to pay us back. So where does this leave us, morally, in the unprecedented access to individual data now available thanks to the information-gathering properties of the Internet?
Lenddo is not alone in adopting this investigative stance. Movenbank assesses numbers of followers on Facebook, Twitter, and LinkedIn to evaluate prospective customers’ influence and social standing. Payment information can also be sourced from sites like eBay, PayPal, and Amazon.
Other online habits are unwitting traps. Many users are guilty of being slapdash with spelling, punctuation, and grammar in email and text messaging, often because those communications are sent in haste or on the move and without much attention to detail. Such traits — using all capitals or no capitals, for example — are taken as dubious signs by German lender Kreditech, which will not lend to anyone who fills out one of its forms in this careless way.
Another habit to be aware of is that the amount of time you spend browsing and investigating a site can be closely monitored and assessed. Payday loan outfit Wonga likes to see that a person has gone through various options before they submit. Someone who goes straight to click for the highest loan possible without due consideration is high-risk to Wonga.
We are, each and every one of us, leaving a digital footprint that cannot and will not ever be erased and that speaks volumes about us. Should we be surprised when this evidence is examined? Kreditech is branching out by selling its technology to online lenders in the Czech Republic and in Russia, andKabbage, another online cash-advance service, has plans to do the same. It would appear that this model is about to go mainstream.
Whereas it could be choosing your friends wisely on your Facebook page, as being friends with some one who defaults on a company’s loan, from a lender to whom you applied ,may not allow that lender to consider, you a good credit risk!
Choose your Facebook friends wisely; they could help you get approved — or rejected — for a loan.
A handful of tech start-ups are using social data to determine the risk of lending to people who have a difficult time accessing credit. Traditional lenders rely heavily on credit scores like FICO, which look at payments history. They typically steer clear of the millions of people who don’t have credit scores.
But some financial lending companies have found that social connections can be a good indicator of a person’s creditworthiness.
One such company, Lenddo, determines if your friends on Facebook (FB) with someone who was late paying back a loan to Lenddo. If so, that’s bad news for you. It’s even worse news if the delinquent friend is someone you frequently interact with.
“It turns out humans are really good at knowing who is trustworthy and reliable in their community,” said Jeff Stewart, a co-founder and CEO of Lenddo. “What’s new is that we’re now able to measure through massive computing power.”
Traditional lenders are still sticking to the traditional modes of enquiry, using credit scores like FICO or agencies like Experian to assess lending suitability, but many of the newer and more tech-savvy startups are taking a different approach. They scrutinize social data and online behavioral patterns to make their decisions and determine credit risk.
For example, one company, Lenddo, in what it is calling a “trust-based model,” will not lend money to someone who is friends on Facebook with another person who has been late, or defaulted on a loan from it in the past. If the friend is someone with whom you have frequent interactions, the decision is even more likely to go against you.
So what is the best way to apply for a loan well first ask someone who you trust in finance, or you can even ask me, as l do not lend myself and will recommend a reliable lender and even help you complete the paperwork! But most of all be honest ,do not cover up other lending and above else, only borrow what you need and not what you want!