We are aware of how vast and effective Social Media has become. In fact we owe our ability to be aware about what is going on to social media.
Social media has ceased to be just a platform for interacting and socialising. It is much more now.
Traditional verification to evaluate our monetary potential fails at times. Smart organisations have therefore found out these smarter ways to assess our abilities to pay back.
Credit agencies now assess your financial caliber on the basis of your social media existence and life.
For Lending platforms,having a good character value is critically important to them, because that is what allows them to have faith on our repaying ability.
There are many things that the credit agencies/bureaus look at before lowering or upping our credit score. Let’s jot down some primary elements that are considered by the credit agencies to grant or not grant loans.
- 1. Our lifestyles and daily routines can be well investigated through social media platforms like Facebook, Linkedin and Twitter.
- 2. They might look at whether we are into alcohol or drugs or at slightest of possibilities that can affect our ability to continue your job.
These results can potentially reduce our credit score
- 3. A pattern is cemented around our social behaviour on the basis of our activities and behaviour on social media. This is used to trace the ability in us to repay.
- 4. Our creditworthiness is judged through our two c’s on social media, they are: – contacts that we have and the contents that we post.
- 5. There are certain keywords encircled by the credit agencies. The profiles with words like wasted, trashed, smashed etc are scrutinised or put under the black list.
They might be potential defaulters in the eyes of the credit givers.
Posts that talk about Casinos, or the posts with ALL CAPS or that contain bad English are again looked at.
- 6. Our circle of friends is also encircled and pin pointed at in case of any doubts. So if there is anything off the road there, we might land up in their caution radar.
Most of the credit agencies utilise the social media for people who do not have a credit score, or have a very newly built credit history. This is also for people who have just migrated.
Also it is fair on the part of credit agencies to get acquainted with the borrower properly so that lending is a risk-free process for them.
We need to safeguard our creditworthiness by being cautious about what we post on our social media accounts. Also we need to discuss within our family and educate others about the potential decrease in the creditworthiness in case of a bad social media score