4 ms·

Are easy for the lender, mean they are good for the society ?

• TulliusCicero 5y ago
  Potentially, sure. If you can’t measure risk effectively, that means you’ll have to offer everyone the same terms. Since some portion of the population probably ‘deserves’ worse terms, they’ll take out more loans than they otherwise would, using the better terms, which further increases the aggregate risk. So, the equilibrium repayment terms you settle on will probably be worse on average than otherwise. Especially since a lack of credit scores will mean less disincentive to renege on the agreement via non-payment. Honestly, loans seem like the least objectionable use of credit scores to me. Repayment of debt is the main thing they’re built around.