You might want to be careful who your friends are, at least on facebook! Your online friends could be the determining factor of whether or not you get a loan. These companies are looking at your friends and their buying habits and that could work for your or against you.
This new trend in online lending is using your social data to decide whether borrowers can qualify for loans without credit scores. Up to this point, lending has almost completely relied on credit scores.
I am a bit skeptical of this type of lending truly catching on, so I don’t think you need to purge your friends list of all your friends who might not handle their finances well. How would you know how to do that?
If you don’t have any credit or bad credit, don’t worry. You might still be able to find a lender that will give you a loan. If you have been turned down for a loan in the past, below are a few things to consider to build up your credit.
- Consider Credit Unions
- Consider Your Peers
- Consider a Cosigner
- Consider Your Home Equity
The first thing you need to do before you build your credit is to find out what your credit is. I have added a link to help you discover what your credit score is.