The alternatives are: 1. Socialize the risk by charging much higher interest rates. 2. Use an informal "shadow credit score" that is based on things like phys

The alternatives are: 1. Socialize the risk by charging much higher interest rates. 2. Use an informal "shadow credit score" that is based on things like physical appearance, personal connections, and illegal blacklists. 3. Stop lending to private individuals without a security covering essentially the full loan amount. All of these seem much worse than the existing credit scoring systems.