Tell all online, imperil your credit
December 19, 2011
Laying bare your innermost thoughts on Facebook can be risky.
For example, a change in status on Facebook by Supervisor Adam Hill midway through his recent divorce created for him additional marital complications, political problems, and some embarrassing press coverage. Now, it turns out that Facebook may be harmful to your credit rating. [PCWorld]
Banks and other financial institutions are harvesting data from individuals’ profiles attached to Facebook, Twitter and other social media, targeting prospective new customers and creating an innovative way of gathering credit information not normally available — such as race, marital status and history of public assistance.
Even one’s friends listed on the sites — both real and “friended” — can prove troublesome, as lenders gain access to more and more information about your circle of acquaintances.
There’s a bright side, however: most experts agree that the technology for widespread exploitation of social media data is still a year or two away.