Women Drivers Blog

Facebook: A GPS for Lenders

June 1, 2014 / 

An estimated 57% of all American adults log on and use Facebook1. You live in a connected world and are able to share your accomplishments, opinions, and key moments of your life with friends and family – and, in real time.

But sometimes, do you share just a little TMI (too much information)? It’s tempting to rant. It’s easy to be transparent and to put very personal information in this very public forum. In fact, most people using these social networks are quite open about what is happening in their life and with great frequency.

Did You Know?

Financial lenders are beginning to scan words and monitor Facebook accounts to ensure consistency. Keywords they look for include ‘divorce’, ‘lost my job’, ‘fired’, ‘separated’, and ‘gambled’.

After the recession that hit the US a few years back, financial lenders are now much more cautious about their lending practices and to whom they extend credit. Consider that these lenders are not just relying solely on your credit scores, but additionally are monitoring your Facebook account to see if the personal information and comments you share are consistent with that score.

Money lenders are now peering into creditor FB profiles to look for evidence of debts or spending habits. In fact, lenders trying to assess the creditworthiness of their potential customers are now looking beyond application forms to social media sites as well as using extensive Google searches. For example, keywords that these financial institutions are looking for include: “divorce (d)”, “lost my job”, “fired or laid off”, ‘gambling”, etc.

 Therefore if you intend to buy a car with credit financing, be aware that what you post on a social network is not only permanent, but there is a good chance it will be reviewed by the lender to determine how creditworthy you actually are, regardless of your credit score. Your own comments may be a tilting point, one way or the other.

1: “6 new facts about Facebook” – Pew Research Center.