Lithuanian court’s decision to allow credit companies use data on social media ‘ground-breaking’

By having access to more data about potential borrowers, credit companies will be able to assess risks more accurately and offer more customized rates to their clients, according to Creditinfo, Lithuania’s credit rating agency.

Before the court’s decision, credit companies would use a person’s income and credit history as criteria in deciding whether to issue a loan and how much to charge.

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With access to applicants’ public posts on social media, companies can have a better understanding of their financial situation and prospects. For instance, people posting comments on Facebook during working hours and using improper grammar may be judged to be riskier borrowers.

Specialists say that the court’s decision is ground-breaking, since it opens the way for credit companies to use more personal data, with the client’s consent, in assessing credit worthiness, like one’s online shopping history.

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