Can Facebook Improve Your Credit Score?

Everyone wants a better rate on their home mortgage and car loan -- but how do you improve a credit score to get it?

In the first week of April, Fair Isaac Corporation (NYSE: FICO  ) made an acquisition that gives us a hint. Taking Infoglide Software in-house, FICO instantly gained access to technology that monitors social networking sites and mines them for data about credit habits and other personal information.

Fair Isaac says it will use Infoglide's software primarily to root out fraud and money laundering for its banking clients -- but do you really think they'll stop there? Chances are, FICO will soon be incorporating social networking data into how it calculates credit scores in short order. And this means that if you want to improve your credit score, it's essential to monitor your Facebook (NASDAQ: FB  ) page, Twitter feed, and other social networking sites to ensure the information you put up there doesn't contradict what you're saying on your loan application.

Fool contributor Rich Smith further explains. 

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  • Report this Comment On April 08, 2013, at 3:59 PM, RichieUKx wrote:

    Its very difficult to improve your credit score on purpose in the social media. You should know how you are being scored and optimize based on that i.e. number of friends.

    Its really a no-brainer not to give different information in two different data sources, but this can hardly be seen as improving your credit score. This is More of an anti-fraud look at things.

    Few companies are doing social media credit scores of which I have found Big Data Scoring to be quite interesting. They have some cases up on their website which seem very interesting and quite advanced. Zestfinance is another company to keep an eye on.

  • Report this Comment On April 08, 2013, at 4:00 PM, RichieUKx wrote:
  • Report this Comment On April 08, 2013, at 5:13 PM, TMFDitty wrote:

    It probably depends on what you mean by "improve."

    On the theory of "first, do no harm," I'd say that by ensuring you don't "give different information in two different data sources," you're at least avoiding hurting your score. If you've goofed and mistakenly permitted conflicting information to appear in difference data sources, in the past, though, then you should indeed be able to improve your score by repairing the disconnect.


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