Ever wish that you could get a loan just by knowing people with good credit?
That may not be as farfetched as it sounds. Thanks to a variety of tech startups like Lenddo, you could improve your credit score and get that loan you need just by having good friends on Facebook.
In Lenddo's case, your loan application is partially assessed based on the Facebook friends you have. If you have a friend with a solid payment history, you may have a slightly better chance of getting a loan. If you have a friend with a bad history, you may be out of luck.
Why do your friends play a factor in this?
"It turns out humans are really good at knowing who is trustworthy and reliable in their community," said Jeff Stuart, Lenddo's CEO. "What's new is that we're now able to measure through massive computing power."
Companies like Lenddo are taking the idea of social connections to a whole new level. Other companies, like Kreditech, are using your location and place of work to determine your credit worthiness. The lending industry is transforming right before our eyes.
Choose your Facebook friends wisely. They could play a part in getting you approved or denied for a loan in the future.
