FICO considering using social media data in credit scoring

Fair Isaac Corp., the company that produces the FICO credit scores used by the vast majority of lenders to determine borrower risk, is considering incorporating information gleaned from social media in its credit scoring.

“There could come a time where certain social media could be predictive and we’re looking at that, but it isn’t yet,” Anthony Sprauve, senior consumer-credit specialist at FICO, told the Wall Street Journal.

Already, some startup lending companies are mining Facebook, Twitter and other social networks to help verify a borrower’s creditworthiness or identity, raising concerns among consumer advocates and regulators, the paper said.

Source: WSJ