Moan and risk your Loan, courtesy Credit Rating
Grandmothers taught us that courtesy was important. Now it seems as true in these ‘in your face’ times. It is not just physical relationships that we make but also fiscal ones, financially forever. Not only potential employers, but also financiers are increasingly checking the social media trail of loan applicants.
Social Media behaviour and the trail thereof left in cyber space, give out significant clues to our personality and tendencies. Things we spend on, our payment patterns and timeliness etc have always been important. But increasingly Courtesy is getting critical to obtain a better credit rating.
Cool Chilli’s Comments
Importance of Courteous or boorish behaviour from a credit-worthiness perspective may stem from an observation that ill-mannered interactions run concomitant with financial imprudence. This is just one of the many facets of credit worthiness. There are multiple aspects a would-be applicant needs to be conscious of. The lenders also don’t have it easy. They are in the business/cause of increasing credit support in the economy. However they run two types of risks. One, giving finance where it is not prudent by mistaking certain behaviours due to ‘gaming‘(manipulation). Two, not lending loans where it may safely be offered due to an ‘over cautious or bureaucratic approach’. The article in the Wharton University site (link below) gives a view of these challenges especially in developing economies.
Start-ups and extensions : Financial Line and Family Life
The NewsTikka team is reminded of the practice in India (increasingly getting redundant) of trying to get the right groom for the daughter of the family. Much before the days of technology and social media, the family elders leveraged ‘physical’ social networks to understand the potential groom and his background.
As with any decision the choice of the groom also came with its share of risk. The more prudent of the girl’s guardians tried to validate the behaviour and character of the potential groom and the family rather than their wealth. Culture, not just Learning (as personified by Sarawathi if we may say so) was a better predictor for marital happiness than just Wealth (Lakshmi). Technology seems to be trending towards tradition!