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Having friends can cost you if you want to get credit.

A lot goes into determining someone's credit worthiness. Think of the days before computers and credit scores. If you wanted to lend money to someone, you took a look at their reputation. Who did they hang around with? Well Brendan Spaar is here to tell you that the old days may be here again.

If your social media accounts are full of entries & pictures of a fun but extravagant lifestyle, lenders might have a concern about your ability to make good decisions. Their main concern is your ability to repay their loan so they want to be sure you are focused on goals that don't just include where the next party might be.

Things that also might affect your ranking is what you post about your job or other personal info. Reading that you are calling in sick to go to Cancun might send red flags to someone deciding whether their money is safe with you. Twitter and LinkedIn are also used to follow a potential borrower’s tweets about their job, and whether or not the job they have listed on their application matches the one posted on their LinkedIn profile. Lenders might also check and see whether the friends and connections of an applicant have paid back their loans.

Still don't believe it's being done? Major credit rating agencies like Fair Isaac Corp (FICO) are starting to check into this option.FICO scores are used in more than 90 % of all credit lending decisions. At least one lender, Lenddo, is assessing your Facebook and social media connections before it approves your loan.

Government regulatory agencies are keeping a careful eye on this practice to ensure that this doesn't invade your privacy. Brendan Spaar suggests if you are looking to get a credit or a loan, you may want to invest some time or money into cleaning up your online reputation, especially if you have less than great results that include crazy social media sites, arrests or other things that might worry lenders.

Don't be the product, buy the product!