Maybe your number of friends on Facebook isn't a great way to gauge your creditworthiness after all.
The Wall Street Journal reported that analyzing social media data isn't necessarily a better way to predict individual credit ratings. This factor plus the numerous regulatory obstacles and overall creep factor have made online lenders to conclude that using social media as a judgment of creditworthiness is not effective, the Journal reported.
The report noted that the FTC has expanded its regulations of credit-reporting methods to include social-media patterns. Online lender LendUp had researched the possibility of using social media patterns in its assessments of potential borrowers, but told the Journal it was deterred by regulatory issues.