This analogy doesn't relate to OP's comment. He's talking about secured debt with institutional lenders, not interpersonal loans. Risk is an integral componen

This analogy doesn't relate to OP's comment. He's talking about secured debt with institutional lenders, not interpersonal loans. Risk is an integral component to determining your interest rate in the US. This is why there is an industry around protecting, understanding, and improving one's FICO score here. Try getting a good loan with a crappy (or substandard) credit score. Spoiler Alert: You can't.