What is Credit Score

This book chapter provides an overview of credit scoring and discusses how credit scoring is evolving within the context of social media. The main focus of the chapter is how financial institutions have begun incorporating a credit applicant's social media activity such as Facebook and Twitter into the risk associated with a financial loan. Traditional financial organizations such as FICO to relatively new start-up companies such as Lenddo are highlighted; the way in which these companies are incorporating big data sources such as social media data into their loan-making decisions are discussed.