Is your credit card debt unmanageable? Wish to take a vacation but don’t have the funds? Want to treat your special one to something special? All these requirements – and more – can be met with instant personal loans.
As a prospective borrower, you might have taken certain steps beforehand to ensure that your personal loan application goes by as smoothly as possible. If you’ve maintained a stable job and paid your dues on time, then you might be confident that your loan will be approved. However, there’s another factor that you need to keep track of – your social media presence.
Yes, believe it or not, your activity on social media can either make or break your personal loan application. New-age lenders have realised the importance of a borrower’s digital presence and how it can help them predict one’s attitude towards repayment. Thus, it’s important to ensure that you are aware of the things that lenders look out for when they analyse your social media presence for approving or underwriting your loan application.
The first thing that lenders will double-check is the information you have provided in your loan application. Your name, address, job title – everything is under a microscope when you apply for a loan. With the prominence of social media, all this information is available to the public. Thus, most new-age lenders check your social media to gauge the validity of the information you have provided. A discrepancy between the information provided in the application and the information on your social media account can raise some serious concerns.
LinkedIn has become the go-to networking channel to build a professional profile. A person’s skills, job profile, and employment records are all displayed on their account. This helps lenders get a basic idea of your job profile and your professional stability, and people who have recommended you add to your information’s validation. If you’re constantly switching jobs and don’t stick to one career path, then lenders may think twice before approving your loan request.
Social Media Activity
Your social media presence is another aspect that lenders track. If your Facebook friends have a bad credit score, then their behavior might reflect on you as well. Your posts on social media are also an indication of your creditworthiness – frequent partying, expensive purchases, gambling sessions, and other such high-risk behavior are all red flags that lenders will notice.
Before the digital age, lenders could only use physical records to gauge an individual’s repayment capacity. However, with the advent of social media, this is not the case anymore. Now, lenders can analyse both your physical records and your digital presence to decide whether to reject or approve your request for a personal loan. By using machine learning and artificial intelligence, double-checking the information you have provided, gauging your job stability, and scrolling through your social media activity, lenders will have more information at their disposal to make a calculated decision regarding your request to avail a small personal loan.
If you wish to know more about eligibility criteria and documentation required to apply for a personal loan, click here.