dcsimg

Facebook Friend Lists Could Impact Credit Card Interest Rates

By , CardRatings contributor
  • Google +
  • Twitter
  • Facebook
Facebook Friend Lists Could Impact Credit Card Interest Rates

Recent reports in the San Francisco Chronicle and in Fast Company magazine profiled a startup company with a service that might surprise most credit card holders. Rapleaf scours social networking sites like Twitter, MySpace, and Facebook for publicly disclosed information about hobbies, personal interests, and friendships. By matching account files from client companies with data gathered online, Rapleaf builds profiles that enhance traditional credit reports with projections about a prospect's overall risk.

Under Rapleaf's evaluation system, credit applicants with friends who have generally good credit receive a lower risk evaluation. For consumers with credit scores bordering between "fair" and "good" or "good" and "excellent," a positive Rapleaf report could provide lenders with enough assurance to issue a loan or offer a stronger interest rate. However, the system's critics suggest that social networks containing less creditworthy friends could increase a consumer's risk projection, unfairly subjecting them to higher credit card interest rates. Consumers concerned about the effects of social networking sites on their credit scores may simply prefer to switch their pages to "private."

0 Responses to "Facebook Friend Lists Could Impact Credit Card Interest Rates"

No Comments

Leave a Comment
 
 
 
About Our Ratings ×

Our editors rate credit cards objectively based on the features the credit card offers consumers, the fees and interest rates, and how a credit card compares with other cards in its category. Ratings vary by category, and the same card may receive a certain number of stars in one category and a higher or lower number in another.

The ratings are the expert opinion of our editors, and not influenced by any remuneration this site may receive from card issuers.

Advertisers in our database are highlighted, and advertisements include an option to apply using links on our site. CardRatings.com may be compensated by companies mentioned on the site when a user's application is accepted or approved by such companies.

How do your cards stack up?

Compare your card starting here

NEXT »

Featured Partner Cards

loading