Your BFF's a slacker...No House For You

By
Real Estate Agent with Palmer House Properties 292385

facebook and credit scores

 

So I was up late browsing CNN.com because I wanted to get caught up on this so called Miley Cyrus debacle just to see what all the hype was about. After I read a couple articles and saw that the hype really wasn't that deep, my peripheral vision caught glimpse of a title to the left of the page, "Your Facebook friends could hurt your credit." Whooooaaaaa back up! This could be a man down code 10 affair!!! 


As I clicked on the article I was thinking of how I was going to convey via Facebook stat to the 800+ people on my friend's list that they need inbox me their credit scores or not survive my wave of mass deletions in a quick effort to protect my credit worthiness because well, "my network equals my net worth" right? Surely, my followers who love my quirky, eccentric, sometimes controversial and thought provoking stats would not mistake my moves to protect my FICO score as pure arrogance. At least I hoped not.........Then I got a grip. 

I could take a deep breath and release it. Or could I? Big lenders are still using the old FICO and Facebook ain't droppin' that score just yet. I hope they never use something as instable as social media connections to determine whether or not someone can pay their mortgage. But according to the article, "...some financial lending companies have found that social connections can be a good indicator of a person's credit worthiness." In other words, if they see you're friend doesn't pay their bills, chances are you won't either.

We have become use to employers using social media to research job applicants but now creditors are using your associations to determine whether you will pay your bills or not? Not only do I think this practice is far fetched and a waste of company time and money, I think it's quite the invasion of privacy as well. One company mentioned in the article goes as far as to determine if you're friends with one of their deliquent account holders in determining your creditworthiness. Oh Yikes! 

I get the creeps when I think of how my online activity is being used. Those little cookies stored on my computer and those little spies these companies have in order to target their marketing and now this. I am hoping lenders never use this tactic in their determination of whether or not to approve homebuyers of mortgages. Something tells me that they may find a way to do so in the future. I have hear a few claims in the past from people who said they were in the process of getting a mortgage or going through loan modifications and saw that their lenders had ironically visited their profiles on LinkedIn. Nothing ever came of them but I hope social media interactions never have a say in the direction the real estate market is going. That would not be a pretty picture. 

Posted by

Selling? Buying? You should call me for that. Dee Neal Palmer House Properties 678.387.9309

                                           
Dee Neal Atlanta Area Real Estate

Dee Neal:PalmerHouse Properties, Atlanta Real Estate

Email: Dee@atlantanewhomesupply.com

Call me: 678.387.9309

 

 

 

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Re-Blogged 2 times:

Re-Blogged By Re-Blogged At
  1. Audrey Hardy 08/27/2013 10:15 PM
  2. Jeanne Kozak 08/27/2013 10:42 PM
Topic:
Mortgage / Finance
Location:
Georgia Fulton County Alpharetta
Groups:
All About Mortgages/Mortgage Networking
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Tags:
credit score
mortgages
fico
facebook
social media

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Show All Comments
Rainmaker
353,969
Scott Gleason
RE/MAX Select - Westfield, NJ
Westfield NJ New Homes Specialist

Great title followed by a curious, article about creepy trends.  I never really devoted the time to curating and customizing my FB presence--so have been cautious even to say Happy Birthday--I am getting tempted to just take it down altogether.

Aug 28, 2013 03:10 AM #86
Rainmaker
375,704
Dana Basiliere
Rossi & Riina Real Estate - Williston, VT
Making deals "Happen"

I think we all have Facebook friends (if we have FB) that are less than perfect with their finances. I don't think it will fly to use that as a gauge.

Aug 28, 2013 03:12 AM #87
Rainer
273,482
Emmary Simpson
Las Cruces Homes and Land - Las Cruces, NM
Serving Las Cruces, NM

What's that old song? "One Step Over The Line"? Jeepers - stuff like this scares the >< out of me!!

Aug 28, 2013 03:46 AM #88
Rainmaker
1,574,438
Georgie Hunter R(S) 58089
Hawai'i Life Real Estate Brokers - Haiku, HI
Maui Real Estate sales and lifestyle info
I'm beginning to really dislike FB because they are so shallow. Lets all mess them up by posting totally incorrect things.
Aug 28, 2013 03:48 AM #89
Ambassador
941,233
Kathy Schowe
California Lifestyle Realty - La Quinta, CA
La Quinta, California 760-333-8886

Talk about Big Brother watching you!!  Kathy

Aug 28, 2013 04:38 AM #90
Rainmaker
1,629,888
Marte Cliff
Marte Cliff Copywriting - Priest River, ID
Your real estate writer

This is a return to the past!

Did you know that back in the 70's, when credit reporting agencies were local, their employees scanned the local newspapers for information about people? When they came across an article that said Joe Jones was being sued, or got a DUI, or was arrested for smacking his wife, it went into the file. 

(Yes, that really is true. A good friend of mine worked for a credit bureau, and that was one of her jobs.)

Now, with so much information about everyone on line... there's more for them to learn, and they don't have to clip news articles. 

 

Aug 28, 2013 04:42 AM #91
Rainmaker
371,013
Travis "the SOLD man" Parker; Broker/Owner
Travis Realty - Enterprise, AL
email: Travis@theSOLDman.me / cell: 334-494-7846

I saw bits'n'pieces of a new show tha other night that showed that commercial advertisers have MUCH more of OUR personal info & preferences than the NSA ever could....

Quick clip of where Leslie Stahl (?? - or who ever it was) walked into a restaurant for 1st time & it had automatically orderded a drink for her by the time she sat down based on facebook.

Aug 28, 2013 05:24 AM #92
Rainmaker
848,857
Bob Miller
Keller Williams Cornerstone Realty - Ocala, FL
The Ocala Dream Team

Hi Dee, unfortunately we are just seeing the tip of the preverbial iceberg.

Aug 28, 2013 06:02 AM #93
Rainmaker
90,354
Dee Neal
Palmer House Properties - Alpharetta, GA
Atlanta Area Real Estate

im thinking no companies that really matter are doing this. if so, there's goes the neighborhood. I for one, am not changing my social networking style. my clients are kewl and quite a few of them come from my FB

Aug 28, 2013 06:03 AM #94
Rainer
511,863
Kimo Jarrett
WikiWiki Realty - Huntington Beach, CA
Pro Lifestyle Solutions

That's the challenge with social media, most of the friends or people on your page are unknown to you. FB will need to change dramatically otherwise it will go away like My Space.

Aug 28, 2013 06:37 AM #95
Rainmaker
528,064
Lisa Friedman
Great American Dream Realty - Essex, VT
30 Years of Real Estate Experience!

Just watched the Miley video and OMG! The looks on Will Smith's famiy's faces were priceless for anyone who clicked on the link.  I, too, am shocked that this is allowed on regular tv.

As for the credit, I can see their point in a way as 'birds of a feather flock together', but what if the one black sheep in the family has bad credit? As some have stated, you may be friends with both millionaires and people just getting by.  I do feel it is an invasion of privacy, however if someone is putting their information out there on a public forum on purpose, then I guess they knew what the potential consequences could be. If you don't put it out there then you don't need to worry (as much) about something coming back to bite you. Invasion of privacy - maybe (again, if you MAKE it public knowledge), however I can see where the creditors are coming from and they are in business to protect their companies.

Aug 28, 2013 06:38 AM #96
Rainmaker
324,145
Melissa Brown
Helen Adams Realty - Charlotte, NC
Realtor - South Charlotte NC Homes for Sale

Next, the creditors will have technology that can follow our eye movements on screen to see where we're surfing on the net!  Yikes!

Aug 28, 2013 08:08 AM #97
Rainmaker
591,167
Mary Hutchison, SRES, ABR
Better Homes and Gardens Real Estate-Kansas City Homes - Kansas City, MO
Experienced Agent in Kansas City Metro area

Ugh, this is not good news.  Thanks for the info.

Aug 28, 2013 09:15 AM #98
Rainmaker
1,553,527
Gary L. Waters Broker Associate, Bucci Realty
Bucci Realty, Inc. - Melbourne, FL
Fifteen Years Experience in Brevard County

I really think employers, lenders or whomever use whatever is available to support the decision they want to make...if it is there, they will look. Cynical, I guess!

Aug 28, 2013 09:24 AM #99
Rainer
160,432
Monique Ting
INET Realty Honolulu, HI - Honolulu, HI
Your agent under the sun

The French have a saying "qui se ressemble s'assemble" or "those who are similar get together", but I think that the credit reporting bureaus are going too far there... What will they think of next?

Aug 28, 2013 10:10 AM #100
Rainmaker
90,354
Dee Neal
Palmer House Properties - Alpharetta, GA
Atlanta Area Real Estate

Melissa: BIG yikes! you just scared me! i think those smart phones do something similar.

Aug 28, 2013 11:05 AM #101
Rainmaker
1,073,612
Sharon Parisi
United Real Estate Dallas - Dallas, TX
Dallas Homes

Hi Dee, this is a new information for me.

Aug 28, 2013 01:12 PM #102
Rainmaker
2,564,723
Rebecca Gaujot, Realtor®
Lewisburg, WV
Lewisburg WV, the go to agent for all real estate

Dee, WOW with all this technology...anything can happen...unbelievable.

Aug 29, 2013 03:01 AM #103
Rainmaker
310,850
Pam Graham
All Real Estate Options - Jacksonville, FL
Jacksonville, Clay & St Johns Counties

Dee, you crack me up! I love your title. I read that same headline, but didn't dig farther into it cos frankly, I think it's hogwash. I don't know how the majority of my friends pay their bills or whether they are on time or not. Sometimes, people just want to get a rise out of others.

Aug 30, 2013 07:05 AM #104
Rainmaker
193,859
Joy Carter & Jeff Booker Brother and Sister Team
Keller Williams Parkland/Coral Springs Realty-GreatFloridaHomes Team - Coral Springs, FL
Trust Your Family's Move To Our Expertise!

I agree with #85 - Maria. My friends are from EVERY Spectrum!

So scary when you want an ap or an update. If you click, "I do not agree", you do not get the program.

It truly is, "MY WAY OR THE HIGHWAY" if you want to play in their sandbox.  Joy

Aug 31, 2013 12:10 PM #105
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Rainmaker
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