What is social media credit scoring

For anyone applying for credit, whether a loan or mortgage for example, most of us know a lender will look at our credit report and base any decisions on what is in the file.

But what if lenders were also able to look at our social media activity? Is this something to worry about??

Firstly, if your credit history is well established and blemish-free, it is unlikely that a lender will ask to browse your social activity.

Secondly, you have to give your permission for them to access your files such as your Facebook profile.

And lastly, the three big credit unions, Equifax, Experian and TransUnion, will not use any form of social media checking when applying for credit.

Some lenders may also wish to view your social media to:

  • Ascertain your lifestyle and therefore, the likelihood of you repaying the loan if accepted.
  • Supplement what they already know about you
  • Assess your creditworthiness
  • Verify your identity
  • Determine whether to approve or decline an application

If you want to check your social score for finance, open a Notty Account and get a monthly update on your score.

Each lender is different in how they assess applications. Some lenders feel it adds another level to credit checking, alongside the traditional way.

There are specific hints that they look for. For example, if you check into a bar 4 nights a week and complain two weeks later that you have no money left, then this could be viewed as bad money management. The lender is less likely to lend in that situation.

Social scoring is quickly becoming more recognized. It not only can provide a financial glimpse but can be quite fun too. Once you have given permission, an algorithm will cleverly evaluate your information. Don’t worry, it is not left to a human to scroll through your every post, tweet or like!

Checks may include:

  • The language used in posts, such as swearing etc.
  • How long you are online for and when is most likely, such as evening, or on a commute.
  • Hints of financial issues, for example, checking into a pub four nights a week and then stating that you have no money left after two weeks, or after various shopping trips.
  • The type of content that you share.
  • What your interests are.
  • What kind of personality you are perceived to have.
  • How many likes you have received over the month and any comments made.

We recommend you have a Notty Account and check what your social media says about you.