Business

Facebook friends can affect your ability to secure loan

Tuesday, August 27, 2013
A computer screen shows the Facebook login page in this undated file photo.

A computer screen shows the Facebook login page in this undated file photo. (KABC Photo)

Facebook users beware: your Facebook friends online could have an effect in real life on your ability to secure a loan.

Several tech startups are using social data to determine the risk of lending to someone.

One company, Lenddo, determines if you are friends on Facebook with someone who was late paying back a loan to them. That becomes bad news for you.

The news is even worse if the delinquent friend is someone you frequently interact with.

But some in the financial industry are skeptical about this, saying consumers can easily control how many Facebook friends they have.

(Copyright ©2014 KABC-TV/DT. All Rights Reserved.)

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