Are social media friends hurting your credit score? - KAIT-Jonesboro, AR-News, weather, sports

Are social media friends hurting your credit score?

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JONESBORO, AR (KAIT)- A person's Facebook friends could determine whether they are approved for a loan.

According to CNN, more lending companies are turning to social media to evaluate a person's loan eligibility. Companies such as Lenddo and Kreditech screen their applicants by checking their Facebook, Twitter and LinkedIn accounts.

"I really think it's over the top, it's an invasion of privacy," said local resident, Sonya Coleman.

"To me I think they are crossing the line," said Jonesboro resident, Debra Butler. 

Some local residents were shocked to hear about the new checklist some lender companies are using when it comes to borrowing money.

It boils down to who you are talking to on your social media page. But not everyone is against it.

"They probably need all the information they can get in order to determine if they can make a reasonable loan," said local resident, Eddie Cooper.

"Somebody that can look nice may have a bad personal life that you don't know about," said Colton Fish.

"If they want to look at your site and see what your lifestyle is and things like that, see what you are talking about your employment to make sure it's legitimate and for real that's okay," said local resident, Laura Fish.

Debra Taylor is the vice president of lending at Liberty Bank in Jonesboro and said this process makes you guilty by association.

"If you have a friend that's commenting on Facebook that they're not able to meet their debt or maybe they're past due, they are using that against you," Taylor said. "Either to raise the interest rate or even lower your credit limit."

Taylor said Liberty Bank has never considered using social media to make credit decisions.

"We tend to feel like using the social media you're not able to treat your customers equally," she said. 

But one resident says it might be not be so bad.

"If you don't have anything to hide , I don't think it's a problem," said Laura Fish.

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