When banks lend to people who will default, it's usually because they issued a secured loan. You can repossess a car quite easily. I couldn't keep up with my

When banks lend to people who will default, it's usually because they issued a secured loan. You can repossess a car quite easily. I couldn't keep up with my car payments in 2009, and my car got repossessed. They got (most of) their money back. Since I had been paying a high interest rate, maybe they even made money. When I ran a service business & wanted to borrow money for growth, even though I was profitable, there was no risk formula I fit into that would allow the bank to determine the likelihood my business would pay them back, so they wouldn't lend to me (unless I used personal assets as collateral).