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Reply To: What Is My Social Credit Score?

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Grace Young
Keymaster

Most people consider credit scores to be dependent on their finances. This might be true for some people, but it is not valid for everyone. Some lenders have started using social media as a financial check to understand borrowers’ backgrounds better. They review their Facebook, LinkedIn, and other social media profiles better to understand their job stability, friends, and followers.

This article will help you learn what a social credit score is and how to improve yours. With the proper guidance, you can not only boost your followers but also manage your financials better. This might push you to maintain a great social image online, but it also will help you get credit more quickly.

Does social media also play an essential role in getting financial assistance? No, we are not talking about donations but how you use social media to create an online presence. Your social credit score might be boosted if you have sufficient followers and your online profile shows you are reliable. Let’s learn more about social credit scores and how to improve them.

Understanding the Concept of a Social Credit Score

Your social credit score is not a fixed number. Unlike credit scores from financial websites, you cannot check your social credit score using apps. Lenders use social media as a criterion to understand borrowers better. They check their locations, job profiles, how stable their income is, and how active they are on social media.

Once they consider all factors related to social media, they determine whether or not they can approve loans on favorable terms. A tremendous social credit score might help you get a loan at an affordable rate, even if you have a mediocre credit score.

How do Social Credit Scores Differ from Traditional Credit Scores?

Your traditional credit score depends on a variety of factors. This includes your income, employment status, debt, DTI rate, and many other factors determining the amount of credit you can get. However, social credit scores do not depend on these factors; they rely on your social media profiles, followers, and online presence.

A more followed, active, and interactive social media presence that indicates job stability is essential to getting a good social credit score. You must work on both credit scores to get a quick loan approval.

Countries and Systems That Use Social Credit Scores

UK lenders use the amount of time borrowers spend on social media, their location, and their websites to determine loan approval. Similarly, German lenders check the borrower’s social media and favorite websites, friends, and posts to determine loan approval. Some countries also use LinkedIn to explore jobs and plans and understand their earning potential.

Your location and likes are just some of the things a lender sees. They also check your number of friends, people or followers, profile, work, and public updates. The lender might not approve your loan if you are looking for a job or are unemployed.

What Factors Influence a Social Credit Score?

Social credit score depends on factors like your Facebook and Instagram fan following. You can also flaunt your social media popularity to boost your social credit score. Your job, your work experience, and income stability are also essential factors one can learn by checking out their LinkedIn profile.

These platforms are also easy ways to find one’s location, how much they use social media, and what they post about Lenders who feel someone with an active social presence is an ideal loan candidate. One who wants to influence people correctly will repay their loans on time. This is why social credit scores are popular these days.

Is the Social Credit Score System Expanding Globally?

Undoubtedly, social media is one of the most vulnerable places for individuals. People need to understand the issues that come with social media platforms. The social credit score system is prevalent in several developed countries, and many lenders use it to ensure the identity of lenders.

However, posting little details about one’s life online can often lead to many other negative things. Lenders sometimes go to extremes to find ways to increase your interest rates. They might dig on your social platforms to find things that show you are not a financially responsible person.

Conclusion

Social life and your finances might seem different, but they are not. If you need financial assistance, your social media accounts might help you get approvals. Interestingly, your online presence can help you get money on favorable terms. Lenders calculate these social credit scores for in-house use and determine which loans to approve.

You can also use Beem to check your traditional credit score. Beem can also help you explore investment opportunities, loans and other financial gadgets you never did. With Beem, you can monitor your credit score for free and save money efficiently.

People Also Ask

What is a social credit score, and how does it work?

The social credit score is a number lenders calculate by evaluating borrowers’ social presence. They check their online profiles, posts, likes, and locations to determine if they can get a loan approval. Social media platforms also provide insight into how a borrower uses their social media and the reality of their job.

Does the United States have a social credit score system?

Not all lenders in the US use the social media credit score system as a compulsory metric. Also, as per the law, it is not required. Still, some lenders use it to ensure they understand the borrower’s job stability and popularity.

How is a social credit score calculated?

There is no definite formula to calculate the social credit score. Every lender calculates it based on their methods and check stain parameters they have set. You must be very popular on social platforms to boost your social credit score. However, your traditional credit score is more reliable than your social one.

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