Next time you get a friend request on Facebook, you might want to consider how clicking “Confirm” might impact your credit rating.
Some reports suggest that as many as 63% of Millennials don’t have a credit card. Financial institutions and credit scoring companies are very anxious to market to and engage this generation. The challenge is a high percentage of Millennials are considered “invisibles” as far as credit is concerned and many more have thin credit histories.
Companies interested in extending credit are looking for alternative sources to assess credit risk. Facebook recently filed a new patent that would allow creditors to assess credit worthiness based on the credit rating of the people in your social network. Their thought is, “Birds of a feather, flock together”.