Report: Lenders Snoop Your Social Networks

Paul Lilly

Before you fill out that loan application, you may want to take a peek at your Facebook profile, because even if you don't, there's a pretty good chance your lender will, a new report suggests .

According to CreditCards.com, creditors are tapping into your social networking circle to help determine your creditworthiness. One reason they do this is to look for discrepancies in the info you provide on the credit app versus what your online profile says.

"We use social chatter as a way to bring risk down. It's a wealth of information about a person," says Rob Garcia, senior director of product strategy, The Lending Club. "If a person says he lives in a different area than the one on the application, it could be a flag. But if it matches, it greatly increases confidence."

But what's scary is that lenders aren't just using your social networking profiles to verify information, they're also making a credit decision based, in part, on what you're doing online and who you're doing it with.

"When people have large networks, they get funded two to three times faster than without," says Garcia. "We notice that good credit people invite good credit people, bad invite bad."

Get the full scoop here .

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