When it comes to getting a loan – even for those without a credit history – it helps to have financially responsible friends on one’s social network, according to a new study forthcoming in the INFORMS journal Marketing Science.
The study titled, “Credit Scoring with Social Network Data,” analyzes new social credit scoring techniques and finds that it helps to have financially responsible friends on your social network to get a loan. They don’t even have to co-sign. More importantly, social network data increases credit availability to society as a whole.
