Updated Aug 28, 2013 - 6:24 am
Credit counselor: Doubtful companies use Facebook to check finances
PHOENIX -- You might want to watch who you friend on Facebook because creditors are watching.
Two technology companies said they can find out if your Facebook friends have bad credit, and that your association with those people lead a potential lender to think that you are just as much of a credit risk as they are, which could prevent you from getting a loan.
Lenddo and Kreditech, two financial companies who claim they can use Facebook to check credit, said they can use "massive computing power" to check out your friends and determine your credit worthiness.
Mike Sullivan of the Take Charge America credit counseling service said the companies' claims are possible, but he doesn't think you should worry about it.
"That kind of guilt by association strikes me as a bit of a stretch," he said. "I really don't see it. I can't believe that that's a very important factor for very many people."
Sullivan thinks the Facebook threats are nothing more than a publicity stunt.
"I had never even heard of them. My guess is they're thinking is that this is a good way to get some attention."
Sullivan believes banks and other lending institutions will keep using legitimate credit reporting agencies to check out your credit and decide whether to give you a loan.
Bob McClay, Reporter