Link: http://www.sfgate.com/cgi-bin/blogs/esandberg/detail??blogid=132&entry_id=55190
I know right off the bat what some of you are gonna say, cus I've gotten it for years. I thought initially the big food databases would bee used ( you know the ones you're a part of for using the supermarket cards?) - some insurance company would get ahold of mine and say "that guy eats too much bacon" and raise my rates.
Well, its happening now with Facebook and I told ya so....
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?
Lowering lending risk is another reason. Creditors can see if people in your network have accounts with them, and are free to look at how they are handling those accounts. The presumption is that if those in your network are responsible cardholders, there is a better chance you will be too. So, if a bank is on the fence about whether to extend you credit, you may become eligible if those in your network are good credit customers.
Bonus is that you can play this in reverse and un-friend people with bad credit. You know, you probably don't want to be hanging around with 'em anyway.

- by
Rob