How Your Online Life Can Mess With Your Credit
 

Blogging at SF Gate, personal finance expert and author Erica Sandberg writes about how things you do online -- including your choice of friends in social networking sites and even comments you leave on blogs -- can influence creditors.

Sandberg writes:


“What's going on: In hopes of identifying good credit customers, some financial institutions are tapping into the information you and your friends reveal online. The idea is that the friends you keep and data you disclose may help them make more accurate business decisions.

Who is doing it: Companies such as Rapleaf hunt and gather social networking transmissions, turning the conversations you have in your network into consumer profiles. These profiles provide banks with insight into your behavior patterns - what you like and dislike, want and don't want, do well and do poorly.

How it's being used: There are a couple of ways this information may be applied. It can help creditors promote certain products, cutting down on marketing waste. Why sent pre-approval letters to people not interested, right?

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