Creative Commons image by: Andrew Magill

Your Facebook Friends Could Ruin Your Credit Score

on Monday, Aug. 26th

Big Data is coming to give you a loan, and he doesn't like your friends.

One such company, Lenddo, determines if you're 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."

This is a global phenomenon. Lenddo and another service featured in the piece, Kreditech, operate outside the United States. Small business focused Kabbage works the U.S. and U.K. online markets.

source: CNN Money

h/t: Brian Clark

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